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Leases
 12 Months Ended
Dec. 31, 2023
Leases  
Leases

NOTE 6 – Leases

The Company had operating right-of-use assets, included in property and equipment, of $22.2 million and $23.6 million as of December 31, 2023 and 2022, respectively.  The Company had lease liabilities, included in other liabilities, of $24.6 million and $25.8 million as of December 31, 2023 and 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 5.91 years and 6.89 years as of December 31, 2023 and 2022, respectively. The ROU asset and lease liability are recognized at lease commencement by calculating the present value of lease payments over the lease term. The ROU assets also include any initial direct costs incurred and lease payments made at or before commencement date and are reduced by any lease incentives.

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 as of January 1, 2019 for leases that existed at adoption of ASC 842 and as of the lease commencement date for leases subsequently entered into. The weighted average discount rate for leases was 2.94% and 2.86% as of December 31, 2023 and 2022, respectively.

Total operating lease costs were $2.4 million and $2.7 million for the years ended December 31, 2023 and 2022, respectively.

Maturities of lease liabilities as of December 31, 2023 were as follows:

    
   Operating 
(dollars in thousands)  Leases 
2024  $2,099 
2025   2,157 
2026   2,210 
2027   2,267 
2028   2,015 
Thereafter   20,187 
Total undiscounted lease payments   30,935 
Discount effect of cash flows   6,291 
Total lease liability  $24,644