XML 21 R12.htm IDEA: XBRL DOCUMENT v3.23.2
NOTE 5 – LEASES
6 Months Ended
Jun. 30, 2023
Note 5 Leases  
NOTE 5 – LEASES

NOTE 5 – LEASES

The Bank leases facilities and equipment with various expiration dates. The facilities leases have varying renewal options, generally require fixed annual rent, and provide that real estate taxes, insurance, and maintenance expenses are to be paid by Salisbury. On April 30, 2023, Salisbury closed its Red Oaks Mill, New York, branch and terminated the lease, which would have expired on July 31, 2023. The following table provides the assets and liabilities as of June 30, 2023 and December 31, 2022, as well as the costs of operating and financial leases, which are included in the Bank’s consolidated income statement for the six months ended June 30, 2023 and 2022.

(in thousands, except lease term and discount rate)   Classification    June 30, 2023      December 31, 2022  
Assets         
Operating  Other assets  $1,125   $1,175 
Finance  Bank premises and equipment 1   3,745    3,856 
Total Leased Assets     $4,870   $5,031 
Liabilities             
Operating  Other liabilities  $1,125   $1,175 
Finance  Finance lease   4,189    4,262 
Total lease liabilities     $5,314   $5,437 
1 Net of accumulated depreciation of $832 thousand and $720 thousand, respectively.

 

Lease cost   Classification   

Six Months Ended

 June 30, 2023

    

Three Months Ended

 June 30, 2023

 
Operating leases  Premises and equipment  $163   $86 
Finance leases:             
Amortization of leased assets  Premises and equipment   112    56 
Interest on finance leases  Interest expense   79    39 
Total lease cost     $354   $181 

 

Lease cost   Classification   

Six Months Ended

 June 30, 2022

    

Three Months Ended

 June 30, 2022

 
Operating leases  Premises and equipment  $147   $73 
Finance leases:             
Amortization of leased assets  Premises and equipment   112    77 
Interest on finance leases  Interest expense   82    41 
Total lease cost     $341   $191 

 

Weighted Average Remaining Lease Term    June 30, 2023      December 31, 2022  
Operating leases   5.3 years    5.9 years 
Financing leases   21.3 years    21.5 years 
Weighted Average Discount Rate 1          
Operating leases   3.7%   3.63%
Financing leases   3.7%   3.74%
1 Salisbury uses the applicable FHLBB Advance rate as the discount rate, as its 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, 2023.

  Future minimum lease payments (in thousands)    Operating Leases      Finance Leases  
 2023   $125   $152 
 2024    270    314 
 2025    218    323 
 2026    213    334 
 2027    188    344 
 Thereafter    244    4,624 
 Total future minimum lease payments    1,258    6,091 
 Less amount representing interest    (133)   (1,902)
 Total present value of net future minimum lease payments   $1,125   $4,189