LEASES

3 Months Ended

Mar. 31, 2023

A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has primarily entered into operating leases for branches and office space. Most of the Company's leases contain renewal options, which the Company is reasonably certain to exercise. Including renewal options, the Company's leases range from 5 to 30 years. Operating lease right-of-use assets and lease liabilities are included in other assets and accrued interest and other liabilities on the Company's unaudited condensed consolidated balance sheets.

The Company uses its incremental borrowing rate to determine the present value of the lease payments, as the rate implicit in the Company's leases is not readily determinable. Lease agreements that contain non-lease components are generally accounted for as a single lease component, while variable costs, such as common area maintenance expenses and property taxes, are expensed as incurred.

The following table summarizes the Company's operating leases at March 31, 2023 and December 31, 2022:


	March 31, 2023			December 31, 2022
Operating lease ROU assets	$	9,065		$	9,270
Operating lease ROU liabilities	9,794			9,976
Weighted-average remaining lease term (in years)	14.2			14.3
Weighted-average discount rate	4.1		%	4.1		%

The following table presents information related to the Company's operating leases for the three months ended March 31, 2023 and 2022:


	Three Months Ended
		March 31, 2023		March 31, 2022
Cash paid for operating lease liabilities		$	284	$	294
Operating lease expense		309		394

The following table presents expected future maturities of the Company's lease liabilities as of March 31, 2023:


2023	$	870
2024	1,179
2025	1,201
2026	1,233
2027	1,267
Thereafter	8,187
	13,937
Less: imputed interest	4,143
Total lease liabilities	$	9,794