Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Note 5 – Leases

Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows.  Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease.  Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.

The Company’s long-term lease agreements are classified as operating leases.  Certain leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised.  The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases:

(Dollars in thousands)	March 31, 2021			December 31, 2020
Lease liabilities	$	7,329		$	4,874
Right-of-use assets	$	7,229		$	4,795
Weighted average remaining lease term		15.47	years		10.49	years
Weighted average discount rate		2.77	%		2.89	%

	For the Three Months Ended		For the Three Months Ended
Lease cost (in thousands)	March 31, 2021		March 31, 2020
Operating lease cost	$	188	$	180
Short-term lease cost		—		—
Total lease cost	$	188	$	180
Cash paid for amounts included in the measurement of lease liabilities	$	167	$	164

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:

	As of
Lease payments due (in thousands)	March 31, 2021
Nine months ending December 31, 2021	$	524
Twelve months ending December 31, 2022		524
Twelve months ending December 31, 2023		760
Twelve months ending December 31, 2024		729
Twelve months ending December 31, 2025		697
Twelve months ending December 31, 2026		561
Thereafter		5,839
Total undiscounted cash flows	$	9,634
Discount		2,305
Lease liabilities	$	7,329