Lease Commitment (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of supplemental lease information

Supplemental lease information at or for the nine months ended September 30, 2020 is as follows:


	Dollars in Thousands
Balance Sheet
Operating Lease Amounts
Right-of-use asset	$	3,958
Lease liability		4,267
Finance Lease Amounts
Right-of-use asset	$	1,858
Lease liability		2,270

Income Statement
Three Months Ended September 30, 2020
Operating lease cost classified as premises and equipment	$	223
Finance lease cost classified as interest on borrowings		16
Nine Months Ended September 30, 2020
Operating lease cost classified as premises and equipment	$	658
Finance lease cost classified as interest on borrowings		49

Weighted average lease term - Operating Leases (Yrs.)		8.44
Weighted average lease term - Finance Leases (Yrs.)		13.34
Weighted average discount rate - Operating Leases (1)		2.83	%
Weighted average discount rate - Finance Leases (1)		2.84	%
Operating outgoing cash flows from operating leases	$	625
Operating outgoing cash flows from finance leases	$	134

(1)

The discount rate was developed by using the fixed rate credit advance borrowing rate at the FHLB of Atlanta for a term correlating to the remaining life of each lease. Management believes this rate closely mirrors its incremental borrowing rate for similar terms.

Schedule of maturities of lease liabilities

A maturity analysis of the Company’s lease liabilities at September 30, 2020 was as follows:


	Dollars in Thousands
Operating Leases:
One year or less	$	668
One to three years		1,189
Three to five years		1,071
Over 5 years		1,968
Total undiscounted cash flows		4,896
Less: Discount		(629)
Lease Liabilities	$	4,267

Finance Leases:
One year or less	$	178
One to three years		363
Three to five years		393
Over 5 years		1,824
Total undiscounted cash flows		2,758
Less: Discount		(488)
Lease Liabilities	$	2,270