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Leases
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases

NOTE 8. 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 Company’s three long-term lease agreements are classified as operating leases.  These leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liability to the extent the options are reasonably certain of being exercised.  The lease agreements do not provide for a residual value guarantee 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

 

 

December 31, 2020

 

Lease liabilities

 

 

 

 

 

 

 

 

 

$

4,037

 

 

$

4,113

 

Right-of-use assets

 

 

 

 

 

 

 

 

 

$

3,895

 

 

$

4,014

 

Weighted average remaining lease term

 

 

 

 

 

 

 

 

 

17 years

 

 

17 years

 

Weighted average discount rate

 

 

 

 

 

 

 

 

 

 

3.33

%

 

 

3.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

Lease Cost

 

September 30, 2021

 

 

September 30, 2020

 

 

September 30, 2021

 

 

September 30, 2020

 

Operating lease cost

 

$

106

 

 

$

66

 

 

$

257

 

 

$

222

 

Short-term lease cost

 

 

7

 

 

 

4

 

 

 

15

 

 

 

12

 

Total lease cost

 

$

113

 

 

$

70

 

 

$

272

 

 

$

234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities

 

$

83

 

 

$

46

 

 

$

209

 

 

$

184

 

 

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities is as follows:

 

 

 

As of

 

Lease payments due

 

September 30, 2021

 

Twelve months ending September 30, 2022

 

$

336

 

Twelve months ending September 30, 2023

 

 

340

 

Twelve months ending September 30, 2024

 

 

343

 

Twelve months ending September 30, 2025

 

 

358

 

Twelve months ending September 30, 2026

 

 

284

 

Thereafter

 

 

3,839

 

Total undiscounted cash flows

 

$

5,500

 

Discount

 

 

(1,463

)

Lease liabilities

 

$

4,037