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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
At the inception of a contract, an entity should determine whether the contract contains a lease. Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Control over the use of an identified asset means that the customer has both (1) the right to obtain substantially all of the economic benefits from the use of the asset and (2) the right to direct the use of the asset.

German American has finance leases for branch offices as well as operating leases for branch offices, ATM locations and certain office equipment. The right-of-use asset is included in the 'Premises, Furniture and Equipment, Net' line of the consolidated balance sheet. The lease liability is included in the 'Accrued Interest Payable and Other Liabilities' line of the consolidated balance sheet.

The Company used the implicit lease rate when determining the present value of lease payments for finance leases. The present value of lease payments for operating leases was determined using the incremental borrowing rate as of the date the Company adopted this standard.
The components of lease expense were as follows:
December 31, 2020December 31, 2019
Finance Lease Cost:
    Amortization of Right-of-Use Assets$210 $210 
    Interest on Lease Liabilities363 378 
Operating Lease Cost1,781 1,807 
Short-term Lease Cost34 68 
Total Lease Cost$2,388 $2,463 

The weighted average lease term and discount rates were as follows:
December 31, 2020December 31, 2019
Weighted Average Remaining Lease Term:
    Finance Leases11 years12 years
    Operating Leases8 years8 years
Weighted Average Discount Rate:
    Finance Leases11.47 %11.49 %
    Operating Leases3.17 %3.29 %

Supplemental balance sheet information related to leases were as follows:
December 31, 2020December 31, 2019
Finance Leases
Premises, Furniture and Equipment, Net$2,278 $2,488 
Other Borrowings$3,224 $3,381 
Operating Leases
Operating Lease Right-of-Use Assets$8,217 $9,052 
Operating Lease Liabilities$8,325 $9,125 

Supplemental cash flow information related to leases were as follows:
December 31, 2020December 31, 2019
Cash Paid for Amounts in the Measurement of Lease Liabilities:
    Operating Cash Flows from Finance Leases$363 $378 
    Operating Cash Flows from Operating Leases1,710 1,734 
    Financing Cash Flows from Finance Leases125 109 
The following table presents a maturity analysis of Finance and Operating Lease Liabilities:
December 31, 2020
Finance LeasesOperating Leases
Year 1$519 $1,535 
Year 2519 1,369 
Year 3519 1,217 
Year 4519 1,088 
Year 5519 924 
Thereafter2,953 3,413 
Total Lease Payments5,548 9,546 
Less Imputed Interest(2,324)(1,221)
Total$3,224 $8,325 
Leases Leases
At the inception of a contract, an entity should determine whether the contract contains a lease. Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Control over the use of an identified asset means that the customer has both (1) the right to obtain substantially all of the economic benefits from the use of the asset and (2) the right to direct the use of the asset.

German American has finance leases for branch offices as well as operating leases for branch offices, ATM locations and certain office equipment. The right-of-use asset is included in the 'Premises, Furniture and Equipment, Net' line of the consolidated balance sheet. The lease liability is included in the 'Accrued Interest Payable and Other Liabilities' line of the consolidated balance sheet.

The Company used the implicit lease rate when determining the present value of lease payments for finance leases. The present value of lease payments for operating leases was determined using the incremental borrowing rate as of the date the Company adopted this standard.
The components of lease expense were as follows:
December 31, 2020December 31, 2019
Finance Lease Cost:
    Amortization of Right-of-Use Assets$210 $210 
    Interest on Lease Liabilities363 378 
Operating Lease Cost1,781 1,807 
Short-term Lease Cost34 68 
Total Lease Cost$2,388 $2,463 

The weighted average lease term and discount rates were as follows:
December 31, 2020December 31, 2019
Weighted Average Remaining Lease Term:
    Finance Leases11 years12 years
    Operating Leases8 years8 years
Weighted Average Discount Rate:
    Finance Leases11.47 %11.49 %
    Operating Leases3.17 %3.29 %

Supplemental balance sheet information related to leases were as follows:
December 31, 2020December 31, 2019
Finance Leases
Premises, Furniture and Equipment, Net$2,278 $2,488 
Other Borrowings$3,224 $3,381 
Operating Leases
Operating Lease Right-of-Use Assets$8,217 $9,052 
Operating Lease Liabilities$8,325 $9,125 

Supplemental cash flow information related to leases were as follows:
December 31, 2020December 31, 2019
Cash Paid for Amounts in the Measurement of Lease Liabilities:
    Operating Cash Flows from Finance Leases$363 $378 
    Operating Cash Flows from Operating Leases1,710 1,734 
    Financing Cash Flows from Finance Leases125 109 
The following table presents a maturity analysis of Finance and Operating Lease Liabilities:
December 31, 2020
Finance LeasesOperating Leases
Year 1$519 $1,535 
Year 2519 1,369 
Year 3519 1,217 
Year 4519 1,088 
Year 5519 924 
Thereafter2,953 3,413 
Total Lease Payments5,548 9,546 
Less Imputed Interest(2,324)(1,221)
Total$3,224 $8,325