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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | NOTE 13. Leases On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The implementation of the new standard resulted in recognition of a right-of-use asset and lease liability of $3.8 million at the date of adoption, which is related to the Company’s lease of premises used in operations. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. During the first quarter of 2020, the Company entered into a long-term lease agreement for a loan production office in Tysons Corner, Virginia. This resulted in the initial recognition of a right-of-use asset and lease liability of $549 thousand, also reflected in other assets and other liabilities. 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. 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 two long-term lease agreements are classified as operating leases. These leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liability to the extent the options are reasonably certain of being exercised. These 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 following tables present information about the Company’s leases:
(dollars in thousands) |  | December 31, 2020 |  |  | December 31, 2019 |
Lease liability |  | $ | 4,113 |  |  | $ | 3,680 |
Right-of-use asset |  | $ | 4,014 |  |  | $ | 3,618 |
Weighted average remaining lease term |  | 17 years |  |  | 20 years |
Weighted average discount term |  |  | 3.34 | % |  |  | 3.62 | %
|  | Twelve Months Ended |
Lease Cost |  | December 31, 2020 |  |  | December 31, 2020 |
Operating lease cost |  | $ | 287 |  |  | $ | 261 |
Variable lease cost |  |  | — |  |  |  | — |
Short-term lease cost |  |  | 16 |  |  |  | 16 |
Total lease cost |  | $ | 303 |  |  | $ | 277 |
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 239 |  |  | $ | 200 |
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities is as follows:
|  | As of |
Lease payments due |  | December 31, 2020 |
Twelve months ending December 31, 2021 |  |  | 319 |
Twelve months ending December 31, 2022 |  |  | 321 |
Twelve months ending December 31, 2023 |  |  | 324 |
Twelve months ending December 31, 2024 |  |  | 327 |
Twelve months ending December 31, 2025 |  |  | 346 |
Thereafter |  |  | 4,039 |
Total undiscounted cash flows |  | $ | 5,676 |
Discount |  |  | (1,563 | )
Lease liability |  | $ | 4,113 |

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- References No definition available. + 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 http://asc.fasb.org/subtopic&trid=77888251 + Details
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