Note 22 - Leases

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(22) Leases

Bancorp has operating leases for various branch locations with terms ranging from two years to 19 years, some of which include options to extend the leases in five-year increments. A total of seven operating leases were added as a result of the KB acquisition. Options reasonably expected to be exercised are included in determination of the right-of-use asset. Bancorp elected to use a 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:

(dollars in thousands)	September 30, 2021			December 31, 2020
Balance Sheet
Operating lease right-of-use asset	$	15,449		$	12,100
Operating lease liability		16,938			13,476
Weighted average remaining lease term (years)		9.5			8.6
Weighted average discount rate		3.02	%		3.37	%
Maturities of lease liabilities:
One year or less	$	654		$	2,087
Year two		2,634			2,107
Year three		2,673			2,141
Year four		2,408			1,899
Year five		1,924			1,469
Greater than five years		9,308			5,882
Total lease payments	$	19,601		$	15,585
Less imputed interest		2,663			2,109
Total	$	16,938		$	13,476

	Three months ended		Three months ended
(in thousands)	September 30, 2021		September 30, 2020
Income Statement
Components of lease expense:
Operating lease cost	$	616	$	468
Variable lease cost		57		44
Less sublease income		9		—
Total lease cost	$	664	$	512

	Nine months ended		Nine months ended
(in thousands)	September 30, 2021		September 30, 2020
Income Statement
Components of lease expense:
Operating lease cost	$	1,623	$	1,411
Variable lease cost		170		131
Less sublease income		36		38
Total lease cost	$	1,757	$	1,504

	Nine months ended		Nine months ended
(in thousands)	September 30, 2021		September 30, 2020
Cash flow Statement
Supplemental cash flow information:
Operating cash flows from operating leases	$	1,898	$	1,186

As of September 30, 2021, Bancorp had not entered into any lease agreements that had yet to commence.