NOTE 4 - LEASES (Tables)

9 Months Ended

Sep. 30, 2021

Note 4 - Leases

assets and liabilities as well as the costs of operating and finance leases that are included in the Bank's consolidated balance sheet as of September 30, 2021 and December 31, 2020 and consolidated income statements for the nine months and three months ended September 30, 2021 and 2020

The following table provides the assets and liabilities as well as the costs of operating and finance leases that are included in the Bank's consolidated balance sheet as of September 30, 2021 and December 31, 2020 and consolidated income statements for the nine months and three months ended September 30, 2021 and 2020.

($ in thousands, except lease term and discount rate)	Classification		September 30, 2021		December 31, 2020
Assets
Operating	Other assets	$	1,076	$	1,182
Finance	Bank premises and equipment 1		1,326		1,402
Total Leased Assets		$	2,402	$	2,584
Liabilities
Operating	Other liabilities	$	1,076	$	1,182
Finance	Finance lease		1,631		1,673
Total Lease Liabilities		$	2,707	$	2,855
1 Net of accumulated depreciation of $471 thousand and $396 thousand, respectively.

Lease Cost	Classification		Nine months ended September 30, 2021		Three months ended September 30, 2021
Operating leases	Premises and equipment	$	221	$	74
Finance leases:
Amortization of leased assets	Premises and equipment		76		25
Interest on finance leases	Interest expense		103		36
Total lease cost		$	400	$	135

Lease Cost	Classification		Nine months ended September 30, 2020		Three months ended September 30, 2020
Operating leases	Premises and equipment	$	188	$	64
Finance leases:
Amortization of leased assets	Premises and equipment		76		25
Interest on finance leases	Interest expense		107		36
Total lease cost		$	371	$	125

Weighted Average Remaining Lease Term	September 30, 2021		December 31, 2020
Operating leases	7.0 years		7.6 years
Financing leases	13.7 years		14.2 years
Weighted Average Discount Rate 1
Operating leases	3.6	%	3.7	%
Financing leases	8.3	%	8.4	%
1 Salisbury uses the applicable FHLBB Advance rate as the discount rate, as its leases do not provide an implicit rate.

schedule by years of the present value of the net minimum lease payments

The following is a schedule by years of the present value of the net minimum lease payments as of September 30, 2021.

Future minimum lease payments (in thousands)		Operating Leases			Finance Leases
2021	$	64		$	48
2022		227			195
2023		167			198
2024		130			200
2025		137			203
Thereafter		437			1,752
Total future minimum lease payments		1,162			2,596
Less amount representing interest		(86	)		(965	)
Total present value of net future minimum lease payments	$	1,076		$	1,631