Note 5 - Premises and Equipment

12 Months Ended

Dec. 31, 2019

Note 5. Premises and Equipment

The following summarizes the components of premises and equipment as of December 31, 2019 and 2018:


	2019		2018
	(dollars in thousands)

Land	$	13,632	$	15,582
Buildings (useful lives 15 to 50 years)		66,070		64,299
Furniture and equipment (useful lives 3 to 10 years)		40,228		36,399
Premises and equipment		119,930		116,280
Less accumulated depreciation		46,071		40,698
Premises and equipment, net	$	73,859	$	75,582

Note 5. Premises and Equipment (continued)

As a lessee, the Company has entered into operating leases for certain branch locations. Total lease expenses were $732 thousand for the year ended December 31, 2019.

At December 31, 2019, the Company’s Right of Use “(ROU)” assets (included in other assets on the consolidated balance sheets) and operating lease liabilities (included in other liabilities on the consolidated balance sheets) were both $1.9 million. No new ROU assets were capitalized during the year ended December 31, 2019.

At December 31, 2019, the contractual maturities of operating lease liabilities were as follows:


	Amount
Year ending December 31:	(dollars in thousands)
2020		541
2021		327
2022		251
2023		200
2024		144
Thereafter		857
	$	2,320

As a lessor, the Company leases certain types of commercial vehicles and industrial equipment to its customers. The Company recognized lease-related revenue, primarily interest income from direct financing leases of $6.1 million for the year ended December 31, 2019. At December 31, 2019 the Company’s net investment in direct financing leases was $88.3 million.

As of December 31, 2019, the contractual maturities of sales-type and direct financing lease receivables were as follows:


	Amount
Year ending December 31:	(dollars in thousands)
2020		12,123
2021		18,464
2022		23,520
2023		22,845
2024		16,065
Thereafter		4,008
Total lease payments receivable	$	97,025
Unguaranteed residual values		547
Unearned lease/residual income		(9,703)
	$	87,869
Plus deferred origination costs, net of fees		1,892
	$	89,761
Less allowance		(1,464)
Total lease payments receivable	$	88,297

The The