LEASES

9 Months Ended

Sep. 30, 2021

NOTE 8 – LEASES

Substantially all of the Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent leases for branch buildings and office space to conduct business. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The lease expense for these leases are recorded on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as either operating or financing leases on the consolidated balance sheet. The Company has no finance lease arrangements. Operating leases have remaining lease terms ranging from 19 months to 20 years, some of which include options to extend the leases for up to 15 years. Operating lease ROU assets and operating lease liabilities are valued based on the present value of future minimum lease payments, discounted with an incremental borrowing rate for the same term as the underlying lease. The Company has one lease arrangement that contains variable lease payments that are adjusted periodically for an index.

Balance sheet information related to leases was as follows:

	As of September 30, 2021		As of December 31, 2020
Operating leases:
Operating lease right-of-use assets	$	1,235	$	880
Operating lease liabilities		1,235		880

The components of lease cost were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Operating lease cost		$	41		$	32		$	119		$	127
Short-term lease expense			8			7			24			23

Future undiscounted lease payments for operating leases with initial terms of one year or more as of September 30, 2021 are as follows:

	Operating Leases
2021 (remaining)	$	42
2022		168
2023		127
2024		106
2025		106
Thereafter		973
Total lease payments		1,522
Less: Imputed Interest		(287	)
Total operating leases	$	1,235

Other information was as follows:

	As of September 30, 2021			As of December 31, 2020
Weighted-average remaining lease term for operating leases	13.9 years			9.6 years
Weighted-average discount rate for operating leases		2.29	%		2.79	%