Note 8 - Leases

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 8. LEASES

We lease nine locations under non-cancelable operating leases. The leases contain various provisions for increases in rental rates based on predetermined escalation schedules. Substantially all of the leases include the option to extend or terminate the lease term one or more times following expiration of the initial term at a rental rate established in the lease. For leases where we are reasonably certain that we will exercise the option to renew the lease, we have recognized those options in our right-of-use lease asset and liability. We had no other (financing, short-term or variable) lease arrangements during the current period or the prior year.

We have recorded a liability in Other Liabilities in our Consolidated Balance Sheets representing the present value of the remaining minimum lease payments and we have recorded an offsetting right-of-use asset in Other Assets in our Consolidated Balance Sheets. The present value calculation uses a discount rate, which is based on our incremental borrowing rate. The right-of-use asset was also reduced for amounts recognized under the previous accounting requirements. The following table presents information regarding our leases as of June 30, 2021 and December 31, 2020.

	June 30,			December 31,
(Dollars in thousands)	2021			2020
Leases:
Right-of-use lease asset	$	2,149		$	2,547
Lease liability	$	2,399		$	2,848
Weighted Average Remaining Lease Term (in years)		4.05			4.29
Weighted Average Discount Rate		2.96	%		2.93	%

Lease expenses are recorded on a straight-line basis over the life of each lease. Lease expense and cash paid on leases are presented in the following table for the periods indicated.

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(Amounts in thousands)	2021		2020		2021		2020
Leases:
Operating lease expense	$	218	$	212	$	437	$	429
Cash paid for operating leases	$	245	$	234	$	488	$	480

The following table sets forth, as of June 30, 2021, the future minimum lease cash payments under non-cancelable operating leases and a reconciliation of the undiscounted cash flows to the operating lease liability.

(Amounts in thousands)	Amount
Due in:
2021	$	490
2022		885
2023		327
2024		280
2025		218
2026		218
Thereafter		140
Total undiscounted future minimum lease cash payments		2,558
Present value adjustment		(159	)
Lease liability	$	2,399

There were no lease-related non-cash financing activities for the six months ended June 30, 2021 or 2020.