Leases

9 Months Ended

Sep. 30, 2021

The Company leases land and premises for its branch banking offices, administration facilities, and ATMs. The initial terms of these leases expire at various dates through 2032. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. Lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. As of September 30, 2021, the Company had 12 operating leases and no financing leases.

The components of lease expense were as follows:


	Three Months Ended				Nine Months Ended
(in 000's)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020



Operating lease expense	$	184	$	191	$	520	$	570

Variable lease expense	95		51		251		169

Total	$	279	$	242	$	771	$	739

Supplemental balance sheet information related to leases was as follows:


(in 000's)	September 30, 2021




Operating cash flows from operating leases	$	508

ROU assets obtained in exchange for new operating lease liabilities	285

Weighted-average remaining lease term in years for operating leases	5.24

Weighted-average discount rate for operating leases	5.14		%

Maturities of lease liabilities were as follows:


(in 000's)	September 30, 2021
2022	$	737
2023	742
2024	640
2025	450
2026	218
Thereafter	469
Total undiscounted cash flows	3,256
Less: present value discount	(404)
Present value of net future minimum lease payments	$	2,852