Note 10 - Lease Commitments

12 Months Ended

Dec. 31, 2023

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 $1.4 million in 2023, $999,000 in 2022 and $904,000 in 2021. 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 2023, 2022 and 2021 were as follows:

Dollars in thousands	2023		2022		2021
Amortization of lease right-of-use assets	$	1,245	$	961	$	858
Short-term lease expense		110		38		46
Total	$	1,355	$	999	$	904

Right-of-use lease assets totaled $8.7 million and $6.0 million at December 31, 2023 and 2022, respectively, and are reported as a component of other assets on our accompanying consolidated balance sheets. The related lease liabilities totaled $8.9 million and $6.1 million at December 31, 2023 and 2022, 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 $988,000, $859,000 and $732,000 during 2023, 2022 and 2021, 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, 2023:

Future Lease Payments
Dollars in thousands
2024	$	1,309
2025		1,266
2026		1,202
2027		1,073
2028		948
Thereafter		4,562
Total undiscounted operating lease liability	$	10,360
Imputed interest		(1,439	)
Total operating lease liability included in the accompanying balance sheet	$	8,921

The weighted average remaining lease term was 9.2 years and 8.6 years at December 31, 2023 and 2022, respectively, and the weighted average discount rate was 3.07 percent and 1.71 percent at December 31, 2023 and 2022, respectively.