XML 23 R12.htm IDEA: XBRL DOCUMENT

NOTE 4 - LEASES

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 and December 31, 2019 and consolidated income statements for the nine months and three months ended September 30, 2020 and 2019.

($ in thousands, except lease term and discount rate)	Classification		September 30, 2020		December 31, 2019
Assets
Operating	Other assets	$	1,235	$	1,360
Finance	Bank premises and equipment ¹		1,427		1,503
Total Leased Assets		$	2,662	$	2,863
Liabilities
Operating	Other liabilities	$	1,213	$	1,360
Finance	Finance lease		1,685		1,718
Total lease liabilities		$	2,898	$	3,078
¹ Net of accumulated depreciation of $370 thousand and $294 thousand, respectively.


Lease cost	Classification		Nine months ended September 30, 2020		Three months ended September 30, 2020
Operating leases	Premises and equipment	$	188	$	64
Finance leases:
Amortization of leased assets	Premises and equipment		76		25
Interest on finance leases	Interest expense		107		36
Total lease cost		$	371	$	125


Lease cost	Classification		Nine months ended September 30, 2019		Three months ended September 30, 2019
Operating leases	Premises and equipment	$	193	$	70
Finance leases:
Amortization of leased assets	Premises and equipment		174		54
Interest on finance leases	Interest expense		135		43
Total lease cost		$	502	$	167


Weighted Average Remaining Lease Term	September 30, 2020	December 31, 2019
Operating leases	8.0 years	8.2 years
Financing leases	14.7 years	15.1 years
Weighted Average Discount Rate¹
Operating leases	3.73%	3.70%
Financing leases	8.38%	8.41%
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 September 30, 2020.

Future minimum lease payments (in thousands)		Operating Leases			Finance Leases
2020	$	64		$	47
2021		250			192
2022		199			195
2023		148			197
2024		129			200
Thereafter		623			1,980
Total future minimum lease payments		1,413			2,811
Less amount representing interest		(200	)		(1,126	)
Total present value of net future minimum lease payments	$	1,213		$	1,685