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Leases (Tables)
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Schedule of Supplemental Balance Sheet Information Related to Leases

As of March 31, 2021, the Company does not believe that any of the renewal options under the existing leases are reasonably certain to be exercised; however, the Company will continue to assess and monitor the lease renewal options on an ongoing basis.

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As of

March 31, 2021

As of

December 31, 2020

Assets

Lease right-of-use assets

$

3,225,000

$

2,290,000

Liabilities

Lease liabilities

$

3,479,000

$

2,612,000

Schedule of Additional Information Related to Leases

The calculated amounts of the lease right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company leases some miscellaneous office equipment, but they are immaterial and therefore the Company records the costs associated with this office equipment on the statements of income rather than capitalizing them as lease right-of-use assets. The Company determined a discount rate of 5.0% would approximate the Company’s cost to obtain financing given its size, growth, and risk profile.

Lease Term and Discount Rate

As of

March 31, 2021

As of

December 31, 2020

Weighted average remaining lease term – operating leases (in years)

3.5

2.2

Weighted average discount rate – operating leases

5.0

%

5.0

%

Schedule of Lease Costs and Other Lease Information

The following table represents lease costs and other lease information. The Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities which are usually determined by the leased square footage in proportion to the overall office building.

Three Months Ended March 31,

2021

2020

Operating lease cost

$

489,000

$

571,000

Short-term lease cost

21,000

39,000

Variable lease cost

60,000

117,000

Sublease income

Total Rent and occupancy

$

570,000

$

727,000

 

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

$

556,000

$

614,000

 

Lease right-of-use assets obtained in exchange for new lease liabilities

Operating leases

$

1,388,000

$

1,915,000

Schedule of Future Minimum Base Rental Payment

Future annual minimum payments for operating leases with initial terms of greater than one year as of March 31, 2021 were as follows:

Year

Amount

2021

$

1,057,000

2022

1,050,000

2023

847,000

2024

370,000

2025

325,000

Thereafter

139,000

Remaining balance of lease payments

3,788,000

Less: difference between undiscounted cash flows and discounted cash flows

309,000

Lease liabilities

$

3,479,000