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Leases

6 Months Ended

Jun. 30, 2021

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:

						Three Months Ended						Three Months Ended
						June 30, 2021						June 30, 2020
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	52					$	53
Interest on Lease Liabilities						87						91
Operating Lease Cost						342						453
Short-term Lease Cost						7						9
Total Lease Cost						$	488					$	606

						Six Months Ended						Six Months Ended
						June 30, 2021						June 30, 2020
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	104					$	105
Interest on Lease Liabilities						175						183
Operating Lease Cost						761						906
Short-term Lease Cost						7						34
Total Lease Cost						$	1,047					$	1,228

The weighted average lease term and discount rates were as follows:

						June 30, 2021						June 30, 2020
Weighted Average Remaining Lease Term:
Finance Leases						11 years						12 years
Operating Leases						8 years						8 years
Weighted Average Discount Rate:
Finance Leases						11.47		%				11.48		%
Operating Leases						3.15		%				3.16		%

Supplemental balance sheet information related to leases were as follows:

						June 30, 2021						June 30, 2020
Finance Leases
Premises, Furniture and Equipment, Net						$	2,173					$	2,383
Other Borrowings						3,140						3,305
Operating Leases
Operating Lease Right-of-Use Assets						$	6,260					$	8,955
Operating Lease Liabilities						6,357						9,041

Supplemental cash flow information related to leases were as follows:

						Six Months Ended						Six Months Ended
						June 30, 2021						June 30, 2020
Cash paid for amounts in the measurement of lease liabilities:
Operating Cash Flows from Finance Leases						$	175					$	183
Operating Cash Flows from Operating Leases						1,805						853
Financing Cash Flows from Finance Leases						69						61

The following table presents a maturity analysis of Finance and Operating Lease Liabilities:

						June 30, 2021
						Finance Leases						Operating Leases
Year 1						$	519					$	1,180
Year 2						519						1,086
Year 3						519						996
Year 4						519						820
Year 5						519						594
Thereafter						2,694						2,560
Total Lease Payments						5,289						7,236
Less Imputed Interest						(2,149)						(879)
Total						$	3,140					$	6,357

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:

						Three Months Ended						Three Months Ended
						June 30, 2021						June 30, 2020
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	52					$	53
Interest on Lease Liabilities						87						91
Operating Lease Cost						342						453
Short-term Lease Cost						7						9
Total Lease Cost						$	488					$	606

						Six Months Ended						Six Months Ended
						June 30, 2021						June 30, 2020
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	104					$	105
Interest on Lease Liabilities						175						183
Operating Lease Cost						761						906
Short-term Lease Cost						7						34
Total Lease Cost						$	1,047					$	1,228

The weighted average lease term and discount rates were as follows:

						June 30, 2021						June 30, 2020
Weighted Average Remaining Lease Term:
Finance Leases						11 years						12 years
Operating Leases						8 years						8 years
Weighted Average Discount Rate:
Finance Leases						11.47		%				11.48		%
Operating Leases						3.15		%				3.16		%

Supplemental balance sheet information related to leases were as follows:

						June 30, 2021						June 30, 2020
Finance Leases
Premises, Furniture and Equipment, Net						$	2,173					$	2,383
Other Borrowings						3,140						3,305
Operating Leases
Operating Lease Right-of-Use Assets						$	6,260					$	8,955
Operating Lease Liabilities						6,357						9,041

Supplemental cash flow information related to leases were as follows:

						Six Months Ended						Six Months Ended
						June 30, 2021						June 30, 2020
Cash paid for amounts in the measurement of lease liabilities:
Operating Cash Flows from Finance Leases						$	175					$	183
Operating Cash Flows from Operating Leases						1,805						853
Financing Cash Flows from Finance Leases						69						61

The following table presents a maturity analysis of Finance and Operating Lease Liabilities:

						June 30, 2021
						Finance Leases						Operating Leases
Year 1						$	519					$	1,180
Year 2						519						1,086
Year 3						519						996
Year 4						519						820
Year 5						519						594
Thereafter						2,694						2,560
Total Lease Payments						5,289						7,236
Less Imputed Interest						(2,149)						(879)
Total						$	3,140					$	6,357

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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