Leases

12 Months Ended

Dec. 31, 2023

Note 12. Leases

The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease terms and the Company has included such extensions in its 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.

Based upon changing staff and operational needs, the Company negotiates lease renewals, extensions, terminations, or new lease contracts. In 2023, the Company entered into a new 10-year lease for space in the greater Richmond area that increased the right-of-use asset and the lease liability on the consolidated balance sheet by $3.6 million; this increase was partially offset by leases terminating and expiring during the year.

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


	December 31,
(Dollars in thousands)	2023			2022
Lease liabilities	$	9,619		$	7,860
Right-of-use asset	$	8,738		$	6,903
Weighted average remaining lease term (years)		7.14			5.85
Weighted average discount rate		3.25	%		2.40	%


	December 31,
(Dollars in thousands)	2023		2022		2021
Operating lease cost	$	2,403	$	2,495	$	2,383
Total lease cost		2,403		2,495		2,383
Cash paid for amounts included in the measurement of lease liabilities		2,217		2,080		2,014

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 for periods following the date stated.


(Dollars in thousands)	December 31, 2023
2024	$	1,934
2025		1,612
2026		1,512
2027		1,365
2028		1,164
Thereafter		3,305
Total undiscounted cash flows		10,892
Discount		(1,273	)
Lease liabilities	$	9,619