Note 10 - Lease Commitments

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 10. LEASE COMMITMENTS

We lease certain office facilities and office equipment under operating leases. Rent expense for all operating leases totaled $999,000 in 2022, $904,000 in 2021 and $606,000 in 2020. In accordance with ASU No. 2016-02, Leases (Topic 842) and its related amendments we recognize certain operating leases on our balance sheet as lease right-of-use assets (reported as a component of other assets) and related lease liabilities (reported as a component of other liabilities).

The components of total lease expense in 2022, 2021 and 2020 were as follows:

Dollars in thousands	2022		2021		2020
Amortization of lease right-of-use assets	$	961	$	858	$	540
Short-term lease expense		38		46		66
Total	$	999	$	904	$	606

Right-of-use lease assets totaled $6.0 million and $6.4 million at December 31, 2022 and 2021, respectively, and are reported as a component of other assets on our accompanying consolidated balance sheets. The related lease liabilities totaled $6.1 million and $6.6 million at December 31, 2022 and 2021, respectively, and are reported as a component of other liabilities in the accompanying consolidated balance sheets. Lease payments under operating leases that were applied to our operating lease liability totaled $859,000, $732,000 and $358,000 during 2022, 2021 and 2020, respectively. The following table reconciles future undiscounted lease payments due under non-cancelable operating leases (those amounts subject to recognition) to the aggregate operating lessee lease liability as of December 31, 2022:

Future Lease Payments
Dollars in thousands
2023	$	868
2024		851
2025		800
2026		759
2027		650
Thereafter		2,621
Total undiscounted operating lease liability	$	6,549
Imputed interest		(468	)
Total operating lease liability included in the accompanying balance sheet	$	6,081

The weighted average remaining lease term was 8.6 years and 9 years at December 31, 2022 and 2021, respectively, and the weighted average discount rate was 1.71 percent and 1.46 percent at December 31, 2022 and 2021, respectively.