LEASES (Tables)

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Assets and liabilities as well as the costs of operating and financial leases

Three months ended (in thousands, except lease term and discount rate)	Classification		March 31, 2020		December 31, 2019
Assets
Operating	Other assets	$	1,310	$	1,360
Finance	Bank premises and equipment 1		1,478		1,503
Total Leased Assets		$	2,788	$	2,863
Liabilities
Operating	Other liabilities	$	1,310	$	1,360
Finance	Finance lease		1,707		1,718
Total lease liabilities		$	3,017	$	3,078
1 Net of accumulated depreciation of $319 thousand.
Lease cost	Classification		March 31, 2020		March 31, 2019
Operating leases	Premises and equipment	$	62	$	61
Finance leases:
Amortization of leased assets	Premises and equipment		25		47
Interest on finance leases	Interest expense		36		46
Total lease cost		$	123	$	154
Weighted Average Remaining Lease Term
Operating leases			8.6 years		8.7 years
Financing leases			15.2 years		13.2 years
Weighted Average Discount Rate 1
Operating leases			3.7%		3.7%
Financing leases			8.4%		7.5%
1 Salisbury uses the FHLB five year Advance rate as the discount rate, as our leases do not provide an implicit rate.

Present value of the net minimum lease payments

Future minimum lease payments (in thousands)		Operating Leases			Finance Leases
2020	$	185		$	140
2021		228			192
2022		199			195
2023		148			197
2024		129			200
Thereafter		650			1,980
Total future minimum lease payments		1,539			2,904
Less amount representing interest		(229	)		(1,197	)
Total present value of net future minimum lease payments	$	1,310		$	1,707