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v3.23.1

Leases | 3 Months Ended
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Mar. 31, 2023
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
|  | March 31, 2023 |  | March 31, 2022
Finance Lease Cost: |  |  |  |
Amortization of Right-of -Use Assets |  | $ | 52 |  |  | $ | 52 |
Interest on Lease Liabilities |  | 78 |  |  | 83 |
Operating Lease Cost |  | 373 |  |  | 369 |
Short-term Lease Cost |  | — |  |  | 24 |
Total Lease Cost |  | $ | 503 |  |  | $ | 528 |
The weighted average lease term and discount rates were as follows:
|  | March 31, 2023 |  | March 31, 2022
Weighted Average Remaining Lease Term: |  |  |  |
Finance Leases |  | 4 years |  | 10 years
Operating Leases |  | 7 years |  | 8 years
Weighted Average Discount Rate: |  |  |  |
Finance Leases |  | 7.58 | % |  | 11.44 | %
Operating Leases |  | 2.82 | % |  | 2.90 | %
Supplemental balance sheet information related to leases were as follows:
|  | March 31, 2023 |  | March 31, 2022
Finance Leases |  |  |  |
Premises, Furniture and Equipment, Net |  | $ | 1,805 |  |  | $ | 2,015 |
Other Borrowings |  | 2,806 |  |  | 3,004 |
Operating Leases |  |  |  |
Operating Lease Right-of-Use Assets |  | $ | 5,971 |  |  | $ | 7,128 |
Operating Lease Liabilities |  | 6,127 |  |  | 7,249 |
Supplemental cash flow information related to leases were as follows:
|  | Three Months Ended |  | Three Months Ended
|  | March 31, 2023 |  | March 31, 2022
Cash paid for amounts in the Measurement of Lease liabilities: |  |  |  |
Operating Cash Flows from Finance Leases |  | $ | 78 |  |  | $ | 83 |
Operating Cash Flows from Operating Leases |  | 366 |  |  | 337 |
Financing Cash Flows from Finance Leases |  | 50 |  |  | 45 |
The following table presents a maturity analysis of Finance and Operating Lease Liabilities:
|  | March 31, 2023
|  | Finance Leases |  | Operating Leases
Year 1 |  | $ | 519 |  |  | $ | 1,325 |
Year 2 |  | 519 |  |  | 1,159 |
Year 3 |  | 519 |  |  | 951 |
Year 4 |  | 519 |  |  | 800 |
Year 5 |  | 465 |  |  | 645 |
Thereafter |  | 1,838 |  |  | 1,953 |
Total Lease Payments |  | 4,379 |  |  | 6,833 |
Less Imputed Interest |  | (1,573) |  |  | (706) |
Total |  | $ | 2,806 |  |  | $ | 6,127 |
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
|  | March 31, 2023 |  | March 31, 2022
Finance Lease Cost: |  |  |  |
Amortization of Right-of -Use Assets |  | $ | 52 |  |  | $ | 52 |
Interest on Lease Liabilities |  | 78 |  |  | 83 |
Operating Lease Cost |  | 373 |  |  | 369 |
Short-term Lease Cost |  | — |  |  | 24 |
Total Lease Cost |  | $ | 503 |  |  | $ | 528 |
The weighted average lease term and discount rates were as follows:
|  | March 31, 2023 |  | March 31, 2022
Weighted Average Remaining Lease Term: |  |  |  |
Finance Leases |  | 4 years |  | 10 years
Operating Leases |  | 7 years |  | 8 years
Weighted Average Discount Rate: |  |  |  |
Finance Leases |  | 7.58 | % |  | 11.44 | %
Operating Leases |  | 2.82 | % |  | 2.90 | %
Supplemental balance sheet information related to leases were as follows:
|  | March 31, 2023 |  | March 31, 2022
Finance Leases |  |  |  |
Premises, Furniture and Equipment, Net |  | $ | 1,805 |  |  | $ | 2,015 |
Other Borrowings |  | 2,806 |  |  | 3,004 |
Operating Leases |  |  |  |
Operating Lease Right-of-Use Assets |  | $ | 5,971 |  |  | $ | 7,128 |
Operating Lease Liabilities |  | 6,127 |  |  | 7,249 |
Supplemental cash flow information related to leases were as follows:
|  | Three Months Ended |  | Three Months Ended
|  | March 31, 2023 |  | March 31, 2022
Cash paid for amounts in the Measurement of Lease liabilities: |  |  |  |
Operating Cash Flows from Finance Leases |  | $ | 78 |  |  | $ | 83 |
Operating Cash Flows from Operating Leases |  | 366 |  |  | 337 |
Financing Cash Flows from Finance Leases |  | 50 |  |  | 45 |
The following table presents a maturity analysis of Finance and Operating Lease Liabilities:
|  | March 31, 2023
|  | Finance Leases |  | Operating Leases
Year 1 |  | $ | 519 |  |  | $ | 1,325 |
Year 2 |  | 519 |  |  | 1,159 |
Year 3 |  | 519 |  |  | 951 |
Year 4 |  | 519 |  |  | 800 |
Year 5 |  | 465 |  |  | 645 |
Thereafter |  | 1,838 |  |  | 1,953 |
Total Lease Payments |  | 4,379 |  |  | 6,833 |
Less Imputed Interest |  | (1,573) |  |  | (706) |
Total |  | $ | 2,806 |  |  | $ | 6,127 |

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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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- 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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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