Leases

6 Months Ended

Jun. 30, 2023

The Company leases certain premises under operating leases. As of June 30, 2023, the Company had lease liabilities of $9.0 million and right-of-use assets of $8.6 million. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Presented within occupancy expense on the Consolidated Statements of Income for the three and six months ended June 30, 2023, operating lease cost was $345,000 and $702,000, respectively, short-term lease cost was $73,000 and $126,000, respectively, and there was no variable lease cost. At June 30, 2023, the weighted-average remaining lease term for the operating leases was 7.8 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.58%. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. See the Company’s 2022 Form 10-K for information regarding these commitments.

A maturity analysis of operating lease liabilities and undiscounted cash flows as of June 30, 2023 is as follows:


(In thousands)	June 30, 2023
Lease payments due
Less than 1 year	$	1,337
1-2 years	1,333
2-3 years	1,359
3-4 years	1,343
4-5 years	1,370
Over 5 years	3,531
Total undiscounted cash flows	10,273
Discount on cash flows	1,280
Total lease liability	$	8,993

There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the six months ended June 30, 2023.