Leases

6 Months Ended

Jun. 30, 2024

Note 6 — 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.

The components of total lease expense were as follows:


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2024		2023			2024		2023
	(In Thousands)
Operating lease cost	$	338	$	367		$	695	$	750
Short-term lease cost		38		46			75		108
Variable lease cost		146		147			287		297
Less: sublease income		—		(30	)		—		(75	)
Total lease cost, net	$	522	$	530		$	1,057	$	1,080

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


	June 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years)		7.37			7.70
Weighted-average discount rate		3.73	%		3.61	%

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


(In Thousands)
2024	$	754
2025		1,408
2026		1,400
2027		1,427
2028		1,113
Thereafter		3,600
Total undiscounted cash flows		9,702
Discount on cash flows		(1,341	)
Total lease liability	$	8,361