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Leases
 6 Months Ended
Jun. 30, 2023
Leases  
Leases

NOTE 7 – Leases

The Company had operating right-of-use assets, included in property and equipment, of $22.9 million and $23.6 million as of June 30, 2023 and December 31, 2022, respectively.  The Company had lease liabilities, included in other liabilities, of $25.3 million and $25.8 million as of June 30, 2023 and December 31, 2022, respectively. We maintain operating leases on land and buildings for various office spaces. The lease agreements have maturity dates ranging from April 2025 to February 2032, some of which include options for multiple five-year extensions. The weighted average remaining life of the lease term for these leases was 6.40 years as of June 30, 2023. The ROU asset and lease liability are recognized at lease commencement by calculating the present value of lease payments over the lease term. 

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term at implementation of the accounting standard and as of the lease commencement date for leases subsequently entered into. The weighted average discount rate for leases was 2.29% as of June 30, 2023.

The total operating lease costs were $604,000 and $768,000 for the three months ended June 30, 2023 and 2022, respectively, and $1.2 million and $1.5 million for the six months ended June 30, 2023 and 2022, respectively.

Operating lease payments due as of June 30, 2023 were as follows:

    
   Operating 
(dollars in thousands)  Leases 
2023  $1,027 
2024   2,099 
2025   2,157 
2026   2,210 
2027   2,268 
Thereafter   22,202 
Total undiscounted lease payments   31,963 
Discount effect of cash flows   6,646 
Total lease liability  $25,317