The Company recognized right-of-use assets (“ROU”) totaling $3.9 million at June 30, 2023 and December 31, 2022, and operating lease liabilities totaling $4.2 million and $4.3 million at June 30, 2023 and December 31, 2022, respectively. The lease liabilities recognized by the Company represent two leased branch locations and one loan production office.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease components, such as fair market value adjustments, are expensed as incurred and are not included in ROU assets and operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for the leases on a straight-line basis over the lease term. For the six months ended June 30, 2023 and 2022, rent expense for the operating leases totaled $157,000.

The following table presents information regarding the Company’s operating leases:



	June 30,		December 31,
	2023		2022
Weighted-average discount rate		3.61%		3.59%
Range of lease expiration dates		1 - 12 years		1 - 13 years
Range of lease renewal options		0 - 20 years		5 - 20 years
Weighted-average remaining lease term		26.1 years		26.4 years

The following table presents the undiscounted annual lease payments under the terms of the Company’s operating leases at June 30, 2023 and December 31, 2022, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:



	June 30,		December 31,
Fiscal Year-End	2023		2022
(In thousands)
2023	$	132	$	264
2024		270		270
2025		280		280
2026		291		291
2027		294		293
Thereafter		5,740		5,740
Total lease payments		7,007		7,138
Less imputed interest		(2,780)		(2,856)
Total lease liabilities	$	4,227	$	4,282

The lease liabilities recognized include certain lease extensions as it is expected that the Company will use substantially all lease renewal options.