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LEASES
 6 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
LEASES

NOTE 4 – LEASES

The following table provides the assets and liabilities as well as the costs of operating and finance leases that are included in the Bank's consolidated balance sheet as of June 30, 2020 and consolidated income statements for the six months and three months ended June 30, 2020.

($ in thousands, except lease term and discount rate)   Classification    June 30, 2020      December 31, 2019  
Assets         
Operating  Other assets  $1,258   $1,360 
Finance  Bank premises and equipment 1   1,453    1,503 
Total Leased Assets     $2,711   $2,863 
Liabilities             
Operating  Other liabilities  $1,258   $1,360 
Finance  Finance lease   1,696    1,718 
Total lease liabilities     $2,954   $3,078 
1 Net of accumulated depreciation of $344 thousand and $294 thousand, respectively.
              
Lease cost  Classification   Six months ended June 30, 2020    Three months ended June 30, 2020 
Operating leases  Premises and equipment  $123   $61 
Finance leases:             
Amortization of leased assets  Premises and equipment   51    25 
Interest on finance leases  Interest expense   71    36 
Total lease cost     $245   $122 
              
Lease cost  Classification   Six months ended June 30, 2019    Three months ended June 30, 2019 
Operating leases  Premises and equipment  $123   $61 
Finance leases:             
Amortization of leased assets  Premises and equipment   120    47 
Interest on finance leases  Interest expense   92    46 
Total lease cost     $335   $154 
              
Weighted Average Remaining Lease Term     June 30, 2020       December 31, 2019  
Operating leases      8.3 years    8.6 years 
Financing leases      14.9 years    13.1 years 
Weighted Average Discount Rate1             
Operating leases      3.73%   3.70%
Financing leases      8.38%   6.20%
1 Salisbury uses the FHLB five-year Advance rate as the discount rate, as our leases do not provide an implicit rate.
              

The following is a schedule by years of the present value of the net minimum lease payments as of June 30, 2020.

  Future minimum lease payments (in thousands)    Operating Leases      Finance Leases  
 2020   $128   $93 
 2021    250    192 
 2022    198    195 
 2023    148    197 
 2024    129    200 
 Thereafter    654    1,980 
 Total future minimum lease payments    1,507    2,857 
 Less amount representing interest    (249)   (1,161)
 Total present value of net future minimum lease payments   $1,258   $1,696