v3.25.4
Note 14 - Leases
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

Note 14. Leases

 

Lessee Arrangements - The right-of-use assets and lease liabilities are included in other assets and other liabilities, respectively, in the Consolidated Statements of Financial Condition.

 

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. The incremental borrowing rate was equal to the rate of borrowing from the FHLB that aligned with the term of the lease contract. 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.

 

Information regarding the Company's leases as of and for the years ended  December 31, 2024 and 2023 were as follows:

 

  

As of December 31,

 

(Dollars in thousands)

 

2024

  

2023

 

Lease liabilities

 $6,474  $6,902 

Right-of-use assets

 $5,761  $6,211 

Weighted-average remaining lease term – operating leases (in months).

  134.9   155.9 

Weighted-average discount rate – operating leases

  2.61%  2.80%

 

  

For the year ended December 31,

 

(Dollars in thousands)

 

2024

  

2023

  

2022

 

Lease Cost

            

Operating lease cost

 $693  $677  $677 

Total lease costs

 $693  $677  $677 

Cash paid for amounts included in measurement of lease liabilities

 $671  $639  $623 

 

As of December 31, 2024, all of the Company’s lease obligations are classified as operating leases. The Company does not have any finance lease obligations.

 

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of December 31, 2024 is as follows:

 

(Dollars in thousands)

    

2025

 $691 

2026

  709 

2027

  589 

2028

  594 

2029

  605 

Thereafter

  4,363 

Total undiscounted cash flows

  7,551 

Discount

  (1,077)

Lease liabilities

 $6,474 

 

Lessor Arrangements - The Company is the lessor for five operating leases. One lease is extended on a month-to-month basis while four of these leases have arrangements for over twelve months with an option to extend the lease terms. 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 Company's leases generally do not contain non-lease components. Total rent income on these operating leases is approximately $10,000 per month.