LEASES

3 Months Ended

Mar. 31, 2024

NOTE 8 – LEASES

Substantially all of the Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent leases for branch buildings and office space to conduct business. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The lease expense for these leases are recorded on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as either operating or financing leases on the consolidated balance sheet. The Company has no finance lease arrangements. Operating leases have remaining lease terms ranging from 25 month to 17.3 years, some of which include options to extend the leases for up to 15 years. Operating lease ROU assets and operating lease liabilities are valued based on the present value of future minimum lease payments, discounted with an incremental borrowing rate for the same term as the underlying lease. The Company has one lease arrangement that contains variable lease payments that are adjusted periodically for an index.

Balance sheet information related to leases is as follows:

	As of March 31, 2024		As of December 31, 2023
Operating leases:
Operating lease right-of-use assets	$	1,159	$	1,205
Operating lease liabilities		1,159		1,205

The components of lease cost were as follows:

	Three months ended March 31,
	2024			2023
Operating lease cost		$	49		$	51
Short-term lease expense			7			-

Future undiscounted lease payments for operating leases with initial terms of one year or more as of March 31, 2024 are as follows:

	Operating Leases
2024 (remaining)	$	146
2025		195
2026		140
2027		109
2028		111
Thereafter		764
Total lease payments		1,465
Less: Imputed Interest		(306	)
Total operating leases	$	1,159

Other information was as follows:

	As of March 31, 2024			As of December 31, 2023
Weighted-average remaining lease term for operating leases	12.7 years			13.0 years
Weighted-average discount rate for operating leases		2.89	%		2.91	%