Note 10 - Leases

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

10. Leases

As of

March 31, 2021

, the Corporation leases real estate for

five

 branch offices under various operating lease agreements. The lease agreements have maturity dates ranging from

August 2025

to

December 2056,

including all extension periods. The Corporation has assumed that there are currently

no

circumstances in which the leases would be terminated before expiration.  The weighted average remaining life of the lease term for these leases was

12.33

 years as of

March 31, 2021

 compared to

12.84

 years as of 

March 31, 2020

.

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of

January 1, 2019

for leases that existed at adoption.  This methodology will be continued for the commencement of any subsequent lease agreements.  The weighted average discount rate for the leases was

3.51%

as of

March 31, 2021

 compared to

3.49%

as of 

March 31, 2020

.

The total operating lease costs were

$48,000

and

$48,000,

respectively, for the

three

months ended

March 31, 2021

 and

2020

.  The right-of-use asset, included in other assets, and lease liability, included in other liabilities, was 

$1.3

 million and

$1.5

 million, respectively, as of

March 31, 2021

, and

$1.5

 million and

$1.7

 million, respectively, as of

March 31, 2020

.

Total estimated rental commitments for the operating leases were as follows as of

March 31, 2021

:

(Dollar amounts in thousands)
Year ending December 31:
2021 (excluding three months)	$	164
2022		222
2023		222
2024		227
2025		212
Thereafter		850
Total minimum lease payments		1,897
Discount effect of cash flows		(387	)
Present value of lease liabilities	$	1,510