Note 24 - Leases

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(24)    Leases

Bancorp has operating leases for various branch locations with terms ranging from approximately one year to 18 years, some of which include options to extend the leases in five-year increments. A total of four operating leases were added as a result of the CB 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, 2022			December 31, 2021
Balance Sheet
Operating lease right-of-use asset	$	16,046		$	14,958
Operating lease liability		17,408			16,408
Weighted average remaining lease term (years)		8.4			9.4
Weighted average discount rate		2.90	%		3.02	%
Maturities of lease liabilities:
One year or less	$	843		$	2,634
Year two		3,358			2,673
Year three		3,057			2,408
Year four		2,319			1,924
Year five		1,842			1,608
Greater than five years		8,329			7,699
Total lease payments	$	19,748		$	18,946
Less imputed interest		2,340			2,538
Total	$	17,408		$	16,408

	Three months ended		Three months ended
(in thousands)	September 30, 2022		September 30, 2021
Income Statement
Components of lease expense:
Operating lease cost	$	793	$	616
Variable lease cost		57		57
Less sublease income		24		9
Total lease cost	$	826	$	664

	Nine months ended		Nine months ended
(in thousands)	September 30, 2022		September 30, 2021
Income Statement
Components of lease expense:
Operating lease cost	$	2,241	$	1,623
Variable lease cost		172		170
Less sublease income		72		36
Total lease cost	$	2,341	$	1,757

	Nine months ended		Nine months ended
(in thousands)	September 30, 2022		September 30, 2021
Cash flow Statement
Supplemental cash flow information:
Operating cash flows from operating leases	$	2,746	$	1,898

As of September 30, 2022, Bancorp had not entered into any lease agreements that had yet to commence.