Note 8 - Leases

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE

8

– LEASES

Substantially all of the Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent leases for branch buildings and office space to conduct business. Leases with an initial term of

12

months or less are

not

recorded on the consolidated balance sheet. The lease expense for these leases are recorded on a straight-line basis over the lease term. Leases with initial terms in excess of

12

months are recorded as either operating or financing leases on the consolidated balance sheet. The Company has

no

finance lease arrangements. Operating leases have remaining lease terms ranging from

1

month to

17.3

years, some of which include options to extend the leases for up to

15

years. Operating lease ROU assets and operating lease liabilities are valued based on the present value of future minimum lease payments, discounted with an incremental borrowing rate for the same term as the underlying lease. The Company has

one

lease arrangement that contains variable lease payments that are adjusted periodically for an index. Upon adoption of the new lease guidance on

January 1, 2019,

an initial ROU asset of

$1,280

was recognized as a non-cash asset addition to the consolidated balance sheet.

Balance sheet information related to leases was as follows:

	As of March 31, 2020		As of December 31, 2019
Operating leases:
Operating lease right-of-use assets	$	998	$	1,053
Operating lease liabilities		998		1,053

The components of lease cost were as follows:

	Three Months Ended March 31,
	2020		2019
Operating lease cost	$	54	$	66
Short-term lease expense		8		16

Future undiscounted lease payments for operating leases with initial terms of

one

year or more as of

March 31, 2020

are as follows:

	Operating Leases
2020 (remaining)	$	123
2021		157
2022		157
2023		116
2024		95
Thereafter		546
Total lease payments		1,194
Less: Imputed Interest		(196	)
Total operating leases	$	998

Other information was as follows:

	As of March 31, 2020			As of December 31, 2019
Weighted-average remaining lease term for operating leases (in years)		10.3			10.6
Weighted-average discount rate for operating leases		2.77	%		2.76	%