Note 6 - Leases

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 6 - LEASES

The Company leases space under non-cancelable operating leases for several of its banking offices and certain office equipment. The leases have remaining terms up to 8.4 years. At September 30, 2020, the Company had lease right-of-use assets and lease liabilities totaling $10.3 million and $11.1 million, respectively, compared to $12.3 million and $12.4 million, respectively, at December 31, 2019 which are reflected in other assets and other liabilities, respectively, in the Company’s Consolidated Balance Sheet.

Maturities of operating lease liabilities as of September 30, 2020 are as follows:

	September 30, 2020
	(In Thousands)
2020 (remaining)	$	839
2021		2,744
2022		2,679
2023		2,205
2024		1,232
thereafter		2,624
Total lease payments		12,323
Less: imputed interest		(1,219	)
Present value of operating lease liabilities	$	11,104

As of September 30, 2020, the weighted average remaining term of operating leases is 5.0 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.20%.

Operating cash flows related to leases were $855,000 and $2.6 million, for the three and nine months ended September 30, 2020, respectively, compared to $888,000 and $2.5 million for the three and nine months ended September 30, 2019, respectively.

Lease costs during the three and nine months ended September 30, 2020 and September 30, 2019 were as follows (in thousands):

	Three Months Ended September 30,
	2020			2019
Operating lease cost	$	876		$	809
Short-term lease cost		13			8
Variable lease cost		77			49
Sublease income		(25	)		(23	)
Net lease cost	$	941		$	843

	Nine Months Ended September 30,
	2020			2019
Operating lease cost	$	2,623		$	2,500
Short-term lease cost		45			21
Variable lease cost		165			151
Sublease income		(70	)		(35	)
Net lease cost	$	2,763		$	2,637