Note 13 - Leases

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

13.  LEASES

The Company leases office space, certain computer and related equipment, and a vehicle under noncancelable operating leases.  The Company determines if an arrangement is a lease at the inception date of the contract.  The Company measures operating lease liabilities using an estimated incremental borrowing rate as there is no rate implicit in the Company’s operating lease arrangements.  An incremental borrowing rate was calculated for each operating lease based on the term of the lease, the U.S. Treasury term interest rate, and an estimated spread to borrow on a secured basis.

Rent expense is recognized on a straight-line basis over the lease term and is in included business development, occupancy, and equipment expense.

As of  June 30, 2021, all of the leases to which the Company was a party were operating leases.  The weighted average remaining term of the leases was 7.3 years.  The weighted average discount rate for the leases was 4.63%.

Maturities of operating lease liability payments consisted of the following.

FUTURE MATURITY OF LEASE LIABILITIES

(Dollars in Thousands)

	As of June 30, 2021
2021 - remaining	$	903
2022		1,730
2023		1,995
2024		1,965
2025		1,776
Thereafter		5,325
Total		13,694
Less imputed interest		(2,179	)
Lease obligation	$	11,515

During the six months ended June 30, 2021 and 2020, total cash payments of  $660 and $800, respectively, were recorded as a reduction in the operating lease obligation.  No cash payments were made to acquire right of use assets. For the three and six months ended June 30, 2021 , rent expense, net of sublease income of $43 and $113, respectively was $384 and $754 , respectively.  For the three and six months ended June 30, 2020, rent expense, net of sublease income of $77 and $156, respectively, was $385 and $763 , respectively.