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Leases

9 Months Ended

Sep. 30, 2024

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.

The Bank 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
						September 30, 2024						September 30, 2023
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	52					$	52
Interest on Lease Liabilities						69						75
Operating Lease Cost						324						343
Short-term Lease Cost						—						—
Total Lease Cost						$	445					$	470

						Nine Months Ended						Nine Months Ended
						September 30, 2024						September 30, 2023
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	157					$	157
Interest on Lease Liabilities						212						230
Operating Lease Cost						1,003						1,080
Short-term Lease Cost						—						—
Total Lease Cost						$	1,372					$	1,467

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

						September 30, 2024						September 30, 2023
Weighted Average Remaining Lease Term:
Finance Leases						8 years						9 years
Operating Leases						6 years						7 years
Weighted Average Discount Rate:
Finance Leases						11.35		%				11.38		%
Operating Leases						3.10		%				3.05		%

Supplemental balance sheet information related to leases were as follows:

						September 30, 2024						September 30, 2023
Finance Leases
Premises, Furniture and Equipment, Net						$	1,491					$	1,700
Other Borrowings						2,466						2,699
Operating Leases
Operating Lease Right-of-Use Assets						$	4,596					$	5,449
Operating Lease Liabilities						4,586						5,598

Supplemental cash flow information related to leases were as follows:

						Nine Months Ended						Nine Months Ended
						September 30, 2024						September 30, 2023
Cash paid for amounts in the Measurement of Lease Liabilities:
Operating Cash Flows from Finance Leases						$	212					$	230
Operating Cash Flows from Operating Leases						991						1,058
Financing Cash Flows from Finance Leases						194						154

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

						September 30, 2024
						Finance Leases						Operating Leases
Year 1						$	519					$	1,212
Year 2						519						947
Year 3						506						752
Year 4						438						665
Year 5						438						564
Thereafter						1,181						1,114
Total Lease Payments						3,601						5,254
Less Imputed Interest						(1,135)						(668)
Total						$	2,466					$	4,586

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.

The Bank 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
						September 30, 2024						September 30, 2023
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	52					$	52
Interest on Lease Liabilities						69						75
Operating Lease Cost						324						343
Short-term Lease Cost						—						—
Total Lease Cost						$	445					$	470

						Nine Months Ended						Nine Months Ended
						September 30, 2024						September 30, 2023
Finance Lease Cost:
Amortization of Right-of -Use Assets						$	157					$	157
Interest on Lease Liabilities						212						230
Operating Lease Cost						1,003						1,080
Short-term Lease Cost						—						—
Total Lease Cost						$	1,372					$	1,467

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

						September 30, 2024						September 30, 2023
Weighted Average Remaining Lease Term:
Finance Leases						8 years						9 years
Operating Leases						6 years						7 years
Weighted Average Discount Rate:
Finance Leases						11.35		%				11.38		%
Operating Leases						3.10		%				3.05		%

Supplemental balance sheet information related to leases were as follows:

						September 30, 2024						September 30, 2023
Finance Leases
Premises, Furniture and Equipment, Net						$	1,491					$	1,700
Other Borrowings						2,466						2,699
Operating Leases
Operating Lease Right-of-Use Assets						$	4,596					$	5,449
Operating Lease Liabilities						4,586						5,598

Supplemental cash flow information related to leases were as follows:

						Nine Months Ended						Nine Months Ended
						September 30, 2024						September 30, 2023
Cash paid for amounts in the Measurement of Lease Liabilities:
Operating Cash Flows from Finance Leases						$	212					$	230
Operating Cash Flows from Operating Leases						991						1,058
Financing Cash Flows from Finance Leases						194						154

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

						September 30, 2024
						Finance Leases						Operating Leases
Year 1						$	519					$	1,212
Year 2						519						947
Year 3						506						752
Year 4						438						665
Year 5						438						564
Thereafter						1,181						1,114
Total Lease Payments						3,601						5,254
Less Imputed Interest						(1,135)						(668)
Total						$	2,466					$	4,586

X

- References

No definition available.

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X

- 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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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