LEASES

9 Months Ended

Sep. 30, 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 4 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 September 30, 2023 and December 31, 2022:


	September 30, 2023			December 31, 2022
Operating lease ROU assets	$	11,053		$	9,270
Operating lease ROU liabilities	11,821			9,976
Weighted-average remaining lease term (in years)	15.2			14.3
Weighted-average discount rate	4.3		%	4.1		%

The following table presents information related to the Company's operating leases for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Cash paid for operating lease liabilities	$	319	$	300	$	890	$	889
Operating lease expense	337		347		948		1,090

The following table presents expected future maturities of the Company's lease liabilities as of September 30, 2023:


2023	$	334
2024	1,349
2025	1,371
2026	1,403
2027	1,437
Thereafter	11,381
	17,275
Less: imputed interest	5,454
Total lease liabilities	$	11,821