Note 6 - Leases

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 6 - Leases

The Bank has lease agreements with unaffiliated parties for fifteen locations, comprised of eleven full-service branches, three business centers, and a parking easement. Lease expirations range from one to twenty years, with additional renewal options on certain leases ranging from two to ten years. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the right-of-use asset and lease liability. At September 30, 2024, the Company's ROU assets and lease liabilities were $17.3 million and $17.8 million, respectively.

Total costs incurred by the Company, as a lessee, were $1.6 million and $857,000 for the nine months ended September 30, 2024 and 2023, respectively, and principally related to contractual lease payments on operating leases. The Company's leases do not impose significant covenants or other restrictions on the Company.

The following table presents amounts relevant to the Company's assets leased for use in its operations at the dates indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In Thousands)
Operating cash flows from operating leases	$	700	$	284	$	1,564	$	857
Right of use assets obtained in exchange for new operating lease liabilities		—		152		12,158		152

The following table presents the weighted-average remaining lease terms and discount rates of the Company's assets leased for use in its operations at the dates indicated:

	September 30, 2024			December 31, 2023
Weighted-average remaining lease term of operating leases (in years)		12.6			9.0
Weighted-average discount rate of operating leases		7.2	%		2.4	%

All lease agreements require the Bank to pay its pro-rata share of building operating expenses. The minimum annual lease payments under non-cancelable operating leases with initial or remaining terms of one year or more through the initial lease term are as follows:

Twelve-month period ending:	(In Thousands)
September 30, 2025	$	2,310
September 30, 2026		2,333
September 30, 2027		2,321
September 30, 2028		2,206
September 30, 2029		2,106
Thereafter		18,547
Total minimum payments required	$	29,823
Less imputed interest		12,095
Present value of lease liabilities	$	17,728