Note 8 - Leases

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Lessee, Leases [Text Block]

Note

8:

Leases

As discussed in Note

11,

on

January 1, 2019,

the Company adopted ASU

2016

-

02,

“Leases”. As of

March 31, 2019,

the Company had recorded operating Right of Use (“ROU”) assets of

$9,473,587

and corresponding operating ROU liabilities of

$9,490,385.

Additionally, as of

March 31, 2019,

the Company had financing ROU assets and liabilities of

$453,485.

We maintain operating leases on land and buildings for certain branch facilities and our headquarters. Financing leases are primarily for equipment used at banking facilities. Most leases include options to renew, with renewal terms extending between

one

to

twenty

years. The exercise of renewal options is based on judgement of management as to whether or

not

the renewal option is reasonably certain to be exercised.   Factors in determining whether or

not

the renewal option is reasonably certain to be exercised include, but are

not

limited to, the value of the leasehold improvements, the value of the renewal rate compared to market rates and the presence of factors that would cause significant economic penalty to the Company if the option is

not

exercised.

Expenses for finance leases are included in other interest expense and occupancy expense line items, whereas, operating leases are expensed entirely in the occupancy expense line item. Leases with a term of less than

twelve

months are

not

recorded on the balance sheet and are expensed on a straight-line basis over the lease term. Discount rates used for the purpose of valuing the leases were based on rates available to the Company on fixed rate borrowings for similar lease terms.

The components of lease expense and their impact on the statement of income for the

three

months ended

March 31, 2019

and

2018

are as follows:

	March 31,			March 31,
	2019			2018
	(In Thousands)			(In Thousands)
Finance lease cost:
Amortization of right-of-use assets	$	27,645		$	-
Interest on lease liabilities		1,720			-
Operating lease cost		181,718			184,710
Sublease income		(10,300	)		-
Total lease costs	$	200,783		$	184,710

Additional lease information:
Operating cash flows from financing leases	$	-
Operating cash flows from operating leases		16,798
Financing cash flows from financing leases		-
Weighted-average remaining lease term - financing leases (in years)		4.1
Weighted-average remaining lease term - operating leases (in years)		15.7
Weighted-average discount rate - financing leases		2.05	%
Weighted-average discount rate - operating leases		5.50	%

The following table sets forth, as of

March 31, 2019,

the future minimum lease cash payments and a reconciliation of the undiscounted cash flows to the lease liability:

		Financing			Operating			Total
					(In Thousands)
Remainder of:	2019	$	88		$	787		$	875
	2020		117			862			979
	2021		118			838			956
	2022		112			827			939
	2023		38			834			872
	Thereafter		-			9,923			9,923
	Total undiscounted future minimum lease cash payments	$	473		$	14,071		$	14,544
	Present value discount		(20	)		(4,581	)		(4,601	)
	Lease liability	$	453		$	9,490		$	9,943

Future minimum lease cash payments under non-cancelable operating leases as of

December 31, 2018,

prior to adoption of ASU

2016

-

02,

were as follows:

	December 31, 2018
	(In Thousands)
2019	$	1,032
2020		993
2021		964
2022		962
2023		956
Thereafter		3,573
	$	8,480