Note 6 - Leases

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 6 – Leases

The Company's leases are recorded under ASC 842, Leases. 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 aggregate right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Company's consolidated balance sheets.

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 certain 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, as of and for the periods indicated (dollars in thousands):

	March 31, 2023			December 31, 2022
Lease liabilities	$	3,071		$	3,318
Right-of-use assets	$	3,003		$	3,245
Weighted average remaining lease term (years)		6.83			6.77
Weighted average discount rate		3.19	%		3.16	%

	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Lease cost
Operating lease cost	$	267	$	267
Short-term lease cost		—		—
Total lease cost	$	267	$	267
Cash paid for amounts included in the measurement of lease liabilities	$	272	$	269

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):

Lease payments due	As of March 31, 2023
Nine months ending December 31, 2023	$	730
Twelve months ending December 31, 2024		573
Twelve months ending December 31, 2025		516
Twelve months ending December 31, 2026		279
Twelve months ending December 31, 2027		208
Twelve months ending December 31, 2028		209
Thereafter		933
Total undiscounted cash flows		3,448
Discount		(377	)
Lease liabilities	$	3,071