Leases

6 Months Ended

Jun. 30, 2023

(6.) LEASES

The Company is obligated under a number of non-cancellable operating lease agreements for land, buildings and equipment with terms, including renewal options reasonably certain to be exercised, extending through 2061. Two building leases were subleased with terms that extended through December 31, 2023.

The following table represents the consolidated statements of financial condition classification of the Company’s right of use assets and lease liabilities:


		June 30,			December 31,
	Balance Sheet Location	2023			2022
Operating Lease Right of Use Assets:
Gross carrying amount	Other assets	$	37,775		$	36,723
Accumulated amortization	Other assets		(6,366	)		(5,603	)
Net book value		$	31,409		$	31,120

Operating Lease Liabilities:
Right of use lease obligations	Other liabilities	$	33,628		$	33,229

The weighted average remaining lease term for operating leases was 21.34 years at June 30, 2023 and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.90%. The Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term for the discount rate.

(6.) LEASES (Continued)

The following table represents lease costs and other lease information:


	Three months ended June 30,						Six months ended June 30,
	2023			2022			2023			2022
Lease costs:
Operating lease costs	$	759		$	664		$	1,535		$	1,332
Variable lease costs (1)		94			132			211			245
Sublease income		(24	)		(11	)		(48	)		(23	)
Net lease costs	$	829		$	785		$	1,698		$	1,554

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	752		$	714		$	1,442		$	1,357
Right of use assets obtained in exchange for new operating lease liabilities	$	912		$	100		$	1,235		$	190

(1)

Variable lease costs primarily represent variable payments such as common area maintenance, insurance, taxes and utilities.

Future minimum payments under non-cancellable operating leases with initial or remaining terms of one year or more, are as follows at June 30, 2023 (in thousands):


Twelve months ended June 30,
2024	$	1,497
2025		2,899
2026		2,795
2027		2,641
2028		2,612
Thereafter		39,337
Total future minimum operating lease payments		51,781
Amounts representing interest		(18,153	)
Present value of net future minimum operating lease payments	$	33,628