Note 20 - Leases

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(20)     Leases

Bancorp has operating leases for various branch locations with terms remaining from one months to 13 years, some of which include options to extend the leases in five year increments. Options reasonably expected to be exercised are included in determination of the right of use asset. Bancorp elected the practical expedient to expense short-term lease obligations associated with leases with original terms of 12 months or less. Bancorp elected not to separate non-lease components from lease components for its operating leases. The right-of-use lease asset and operating lease liability are recorded in premises and equipment and other liabilities on the consolidated balance sheet.

Balance sheet, income statement and cash flow detail regarding operating leases follows:

(in thousands)
Balance Sheet	March 31, 2020			December 31, 2019
Operating lease right-of-use assets	$	11,871		$	12,737
Operating lease liabilities		13,363			14,369
Weighted average remaining lease term		9.1			9.4
Weighted average discount rate		3.50	%		2.46	%
Maturities of lease liabilities:
One year or less	$	1,469		$	1,964
Year 2		1,915			1,915
Year 3		1,930			1,930
Year 4		1,972			1,972
Year 5		1,781			1,781
Greater than 5 years		6,619			6,619
Total lease payments	$	15,686		$	16,181
Less imputed interest		2,323			1,812
Total	$	13,363		$	14,369

(In thousands)	Three months ended		Three months ended
Income Statement	March 31, 2020		March 31, 2019
Components of lease expense:
Operating lease cost	$	470	$	508
Variable lease cost		42		39
Less sublease income		13		14
Total lease cost	$	499	$	533

(In thousands)	Three months ended		Three months ended
Cash flow Statement	March 31, 2020		March 31, 2019
Supplemental cash flow information:
Operating cash flows from operating leases	$	393	$	354

As of March 31, 2020, Bancorp had not entered into any lease agreements that had yet to commence.