Leases

3 Months Ended

Mar. 31, 2023

Note 14: Leases

The Company has operating and finance leases for certain banking offices and land under noncancelable agreements. Our leases have remaining lease terms that vary from less than two years up to 28 years, some of which include options to extend the leases for various renewal periods. All options to renew are included in the current lease term when we believe it is reasonably certain that the renewal options will be exercised.

The components of lease expense are as follows:


	For the three months ended
(In thousands)	March 31, 2023		March 31, 2022
Operating lease cost	$	59	$	57
Finance lease cost		55		21

Supplemental cash flow information related to leases was as follows:


	For the three months ended
(In thousands)	March 31, 2023		March 31, 2022
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	54	$	52
Operating cash flows from finance leases		55		21
Financing cash flows from finance leases		32		18

Supplemental balance sheet information related to leases was as follows:



(In thousands, except lease term and discount rate)	March 31, 2023			March 31, 2022
Operating Leases:
Operating lease right-of-use assets	$	2,062		$	2,102
Operating lease liabilities		2,385			2,409

Finance Leases:
Finance lease right-of-use assets	$	4,178		$	-
Finance lease liability		4,411			599

Weighted Average Remaining Lease Term:
Operating Leases	18.17 years			18.16 years
Finance Leases	28.10 years			27.17 years

Weighted Average Discount Rate:
Operating Leases		3.86	%		3.73	%
Finance Leases		9.41	%		13.75	%

Maturities of lease liabilities are as follows:


Twelve Months Ending March 31,
(In thousands)
2024	$	117
2025		164
2026		175
2027		186
2028		198
Thereafter		5,956
Total minimum lease payments	$	6,796

The Company owns certain properties that it leases to unaffiliated third parties at market rates. Lease rental income was $48,000 and $55,000 for the three months ended March 31, 2023 and 2022 respectively. All lease agreements, in which the Company is the lessor, are accounted for as operating leases.