Leases

6 Months Ended

Jun. 30, 2023

Note 9 – Leases

The Company’s long-term lease agreements are classified as operating leases and consist primarily of real estate for retail branches and office space. Certain of these leases offer the option to extend the lease term and such extensions are included in the calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases as of the dates and for the periods stated.


	For the three months ended				For the six months ended
(Dollars in thousands)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating lease cost	$	526	$	654	$	1,241	$	1,210
Total lease cost		526		654		1,241		1,210
Cash paid for amounts included in the measurement of lease liabilities		546		341		1,145		1,077


(Dollars in thousands)	June 30, 2023			December 31, 2022
Right-of-use assets	$	5,744		$	6,903
Lease liabilities	$	6,765		$	7,860
Weighted average remaining lease term (years)		5.76			5.85
Weighted average discount rate		2.41	%		2.40	%

The following table presents a maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of the date stated.


(Dollars in thousands)	June 30, 2023
Six months ending December 31, 2023	$	889
Twelve months ending December 31, 2024		1,445
Twelve months ending December 31, 2025		1,116
Twelve months ending December 31, 2026		1,049
Twelve months ending December 31, 2027		963
Thereafter		1,771
Total undiscounted cash flows		7,233
Discount		(468	)
Lease liabilities	$	6,765