Note 6 - Leases

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 6 - LEASES

The Company enters into operating leases in the normal course of business primarily for several of its branch and corporate locations. Leases (Topic 842) establishes a right of use model that requires a lessee to record a right of use (“ROU”) asset and a lease liability for all leases with terms longer than 12 months. Currently the Company is obligated under four non-cancellable operating lease agreements for three branch properties and its corporate office. The leases have varying terms, the longest of which will end in 2032. The Company's lease agreements include options to renew at the Company's discretion. The extensions are not reasonably certain to be exercised; therefore, they were not considered in the calculation of the ROU asset and lease liability. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company's Statement of Financial Condition.

The following table represents the classification of the Company's right of use and lease liabilities:

	Statement of Financial Condition Location	September 30, 2020			December 31, 2019
Operating Lease Right of Use Asset:
Gross carrying amount		$	6,694		$	—
New lease obligation			111			6,694
Accumulated amortization			(1,508	)		(848	)
Net carrying value	Other assets	$	5,297		$	5,846
Operating Lease Liabilities:
Right of use lease obligations	Other liabilities	$	5,297		$	5,846

Amortization expense was $221,000 and $212,000 for the three months ended  September 30, 2020 and 2019, respectively, and $660,000 and $636,000 for the nine months ended  September 30, 2020 and 2019.  At  September 30, 2020, the weighted-average remaining lease term for the operating leases was 8.4 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.13%. The Company utilized the FHLB fixed rate advance rate for the term most closely aligning with the remaining lease term at inception.

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
Lease cost:	2020			2019			2020			2019
Operating lease cost	$	221		$	212		$	660		$	636
Short-term lease cost		42			26			113			86
Sublease income		(19	)		(17	)		(56	)		(32	)
Total lease cost	$	244		$	221		$	717		$	690
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	238		$	225		$	709		$	674

Future minimum payments under non-cancellable operating leases with terms longer than 12 months, are as follows at September 30, 2020:

Twelve months ended September 30,
2021	$	957
2022		991
2023		1,002
2024		582
2025		505
Thereafter		2,344
Total future minimum operating lease payments		6,381
Amounts representing interest		(1,084	)
Present value of net future minimum operating lease payments	$	5,297