Leases

3 Months Ended

Mar. 31, 2023

Leases

The Corporation leases various office spaces and specialized lending production offices under non-cancellable operating leases which expire on various dates through 2033. The Corporation also leases office equipment. The Corporation recognizes a right-of-use asset and an operating lease liability for all leases, with the exception of short-term leases. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term.

In 2019, the Corporation entered into a sublease for office space it vacated in its Kansas City metropolitan area which expires in 2023. During the first quarter 2022, the Corporation amended the sublease agreement and the amendment did not result in any impairment.

The components of total lease expense were as follows:


	For the Three Months Ended March 31,
	2023		2022
	(In Thousands)
Operating lease cost	$	382	$	383
Short-term lease cost	63		37
Variable lease cost	150		126
Less: sublease income	(45)		(45)
Total lease cost, net	$	550	$	501

Quantitative information regarding the Corporation’s operating leases was as follows:


	March 31, 2023		December 31, 2022
Weighted-average remaining lease term (in years)	8.10		8.06
Weighted-average discount rate	3.46	%	3.40	%

The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities:


(In Thousands)
2023	$	1,110
2024	1,527
2025	1,408
2026	1,400
2027	1,428
Thereafter	4,689
Total undiscounted cash flows	11,562
Discount on cash flows	(1,740)
Total lease liability	$	9,822