Note 10 - Leases

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 10 Leases

The Company accounts for its leases in accordance with ASC Topic 842. Operating lease right-of-use assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. Because the Company only has operating leases and the right-of-use asset is offset by a lease payment obligation liability, the lease payments are the only amount that is recorded in occupancy expense in the consolidated statements of comprehensive income (loss).

The Company’s leases relate to office space and bank branches with remaining lease terms between eight and forty-seven months. Certain leases contain extension options which typically range from three to ten years. Because these extension options are not considered reasonably certain of exercise, they are not included in the lease term. As of December 31, 2023 a $0.3 million right-of-use asset and an offsetting lease payment obligation liability were recorded on the consolidated balance sheet in other assets and other liabilities, respectively. Operating lease costs were $0.2 for both years ended December 31, 2023 and 2022.

The table below summarizes other information related to our operating leases for the years ended December 31, 2023 and 2022.

(Dollars in thousands)	2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	223			226
Weighted-average remaining lease term – operating leases, in years		2.0			2.8
Weighted-average discount rate – operating leases		2.71	%		2.64	%

The table below summarizes the maturity of remaining lease liabilities:

(Dollars in thousands)	December 31, 2023
2024	$	212
2025		58
2026		27
2027		25
2028 and thereafter		0
Total lease payments		322
Less: Interest		(9	)
Present value of lease liabilities	$	313