Leases

3 Months Ended

Mar. 31, 2023

11.

LEASES

The Bank and ALC are involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from two years to six years, some of which include options to extend the leases for up to five years, and some of which include an option to terminate the lease within one year. The Bank leases certain office facilities to third parties and classifies these leases as operating leases.

The following table provides a summary of the components of lease expense, as well as the reporting location in the interim condensed consolidated statements of operations, for the three months ended March 31, 2023 and 2022:


	Location in the Condensed	Three Months Ended
	Consolidated Statements of Operations	March 31, 2023		March 31, 2022
		(Dollars in Thousands)
Operating lease expense (1)	Net occupancy and equipment	$	108	$	108
Operating lease income (2)	Lease income	$	234	$	214

(1)

Includes short-term lease costs. For the three months ended March 31, 2023 and 2022, short-term lease costs were nominal in amount.

(2)

Operating lease income includes rental income from owned properties.

The following table provides supplemental lease information for operating leases on the interim condensed consolidated balance sheet as of March 31, 2023 and December 31, 2022:


	Location in the Condensed
	Consolidated Balance Sheet	March 31, 2023			December 31, 2022
		(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	1,791		$	1,883
Operating lease liabilities	Other liabilities	$	1,870		$	1,961
Weighted-average remaining lease term (in years)			4.78			5.03
Weighted-average discount rate			3.30	%		3.30	%

The following table provides supplemental lease information for the interim condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022:


	Three Months Ended
	March 31, 2023		March 31, 2022
	(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	107	$	108

The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of March 31, 2023:


	Minimum Rental Payments
	(Dollars in Thousands)
2023		324
2024		438
2025		339
2026		346
2027		353
2028 and thereafter		238
Total future minimum lease payments	$	2,038
Less: Imputed interest		168
Total operating lease liabilities	$	1,870