LEASES (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Assets and liabilities as well as the costs of operating and financial leases

($ 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.

Present value of the net minimum lease payments

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