Leases

9 Months Ended

Sep. 30, 2021

Leases

Note 13. Leases

Note 13. Leases

On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Right-of-use assets and lease liabilities are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets.

Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows.  Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease.  Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.

The Company’s long-term lease agreements are classified as operating leases.  Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised.  The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases (dollars in thousands):

	September 30, 2021
Lease Liabilities	$	1,001
Right-of-use assets	$	984
Weighted average remaining lease term	3.57 years
Weighted average discount rate		2.97	%

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Lease cost
Operating lease cost	$	37	$	30	$	88	$	88
Total lease cost	$	37	$	30	$	88	$	88
Cash paid for amounts included in the measurement of lease liabilities	$	42	$	28	$	108	$	98

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands):                                                                                                                              

	September 30, 2021
Three months ending December 31, 2021	$	42
Twelve months ending December 31, 2022		194
Twelve months ending December 31, 2023		135
Twelve months ending December 31, 2024		136
Twelve months ending December 31, 2025		98
Thereafter		588
Total undiscounted cash flows	$	1,193
Discount		192
Lease liabilities	$	1,001