Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.21.2
LEASES
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases
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
 
from
1
 
to
44
 
years.
 
The Company’s
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
 
842.
 
Operating leases with an initial term of 12 months or less are not recorded on the
balance sheet and the related lease expense is recognized on a straight-line basis over the lease term.
 
At September 30, 2021, the
operating lease ROU assets and liabilities were $
11.9
 
million and $
12.5
 
million, respectively.
 
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
Nine Months Ended
September 30,
September 30,
(Dollars in Thousands)
2021
2020
2021
2020
Operating lease expense
$
369
$
273
$
1,075
$
695
Short-term lease expense
181
145
490
378
Total
 
lease expense
$
550
$
418
$
1,565
$
1,073
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
410
$
271
$
1,197
$
695
Right-of-use assets obtained in exchange for new operating lease liabilities
269
85
784
5,206
Weighted average
 
remaining lease term — operating leases (in years)
25.0
15.4
25.0
15.4
Weighted average
 
discount rate — operating leases
2.0%
2.3%
2.0%
2.3%
The table below summarizes the maturity of remaining lease liabilities:
(Dollars in Thousands)
September 30, 2021
2021
$
413
2022
1,499
2023
1,129
2024
1,088
2025
911
2026 and thereafter
11,199
Total
$
16,239
Less: Interest
(3,720)
Present Value
 
of Lease liability
$
12,519
At September 30, 2021, the Company had additional operating lease payments
 
for
two
 
banking offices that have not yet commenced
totaling $
4.8
 
million based on the initial contract term of
15 years
.
 
Payments for the banking offices are expected to commence after
the construction period ends, which is expected to occur during the second quarter of 2022 and the third quarter of 2022.
 
A related party is the lessor in an operating lease with the Company.
 
The Company’s minimum payment
 
is $
0.2
 
million annually
through 2024, for an aggregate remaining obligation of $
0.6
 
million at September 30, 2021.