NOTE 6 – LEASES
Operating leases in which the Company is the lessee are recorded as operating
lease right of use (“ROU”) assets and operating
liabilities, included in other assets and liabilities, respectively,
on its Consolidated Statement of Financial Condition.
The Company’s operating
leases primarily relate to banking offices with remaining lease terms
leases are not complex and do not contain residual value guarantees, variable
lease payments, or significant assumptions or judgments
made in applying the requirements of Topic
Operating leases with an initial term of 12 months or less are not recorded on the
Consolidated Statement of Financial Condition and the related lease expense is recognized on a straight-line basis over the lease term.
At June 30, 2022, the operating lease ROU assets and liabilities were $
million, respectively. At December
2021, ROU assets and liabilities were $
The Company does not have any finance leases
or any significant lessor agreements.
The table below summarizes our lease expense and other information related
to the Company’s operating leases.
Three Months Ended
Six Months Ended
(Dollars in Thousands)
Operating lease expense
Short-term lease expense
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
Right-of-use assets obtained in exchange for new operating lease liabilities
remaining lease term — operating leases (in years)
discount rate — operating leases
At June 30, 2022, the Company had three additional operating lease obligations
for banking offices (to be constructed) that have not
yet commenced. These leases have payments totaling $
million based on the initial contract terms of
Payments for the
banking offices are expected to commence after the construction periods end, which are each expected to occur during the fourth
quarter of 2022 and the first quarter of 2023.
A related party is the lessor in an operating lease with the Company.
The Company’s minimum payment
through 2024, for an aggregate remaining obligation of $
million at June 30, 2022.