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Note 11 - Leases | 12 Months Ended
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Dec. 31, 2022
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | (11) LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified premises and equipment for a period of time in exchange for consideration. The Company is a lessee in certain leasing agreements, such as for branch office space. During 2020, the Bank extended a noncancelable lease agreement for branch office space which expires in March 2025 with annual lease payments of $19,000. The Bank’s subsidiary companies headquartered in Nevada lease office space under sublease agreements that automatically renew for one year periods each October. The Company has adopted FASB ASC 842 and all subsequent updates. With the adoption of FASB ASC 842, operating lease agreements are required to be recognized on the consolidated balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. All of the Company’s leases are classified as operating leases. The Company has elected all applicable practical expedients permitted under the standard, including the option to expense short-term leases with a term of one year or less. The Company’s right to use an asset over the life of a lease is recorded as an ROU asset included in other assets on the consolidated balance sheets and was $42,000 and $60,000 at December 31, 2022 and 2021, respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. The Company recorded a lease liability in other liabilities on the consolidated balance sheets, which had a balance of $42,000 and $60,000 at December 31, 2022 and 2021, respectively. The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, FASB ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Certain leases may include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of renewal options on operating leases is at the Company’s sole discretion, and certain leases may include options to purchase the leased property. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company does not enter into lease agreements which contain material residual value guarantees or material restrictive covenants. At December 31, 2022, the Company had not entered into any leases that had yet to commence that conveyed the right to control the use of the property to the Company. Lease expense for the years ended December 31, 2022, 2021 and 2020 was $32,000, $31,000 and $30,000, respectively. The components of lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows:
(In thousands) |  | 2022 |  |  | 2021 |  |  | 2020 |
Operating lease cost |  | $ | 19 |  |  | $ | 19 |  |  | $ | 14 |
Short-term lease cost |  |  | 13 |  |  |  | 12 |  |  |  | 16 |
Totals |  | $ | 32 |  |  | $ | 31 |  |  | $ | 30 |
Future minimum commitments due under operating lease agreements as of December 31, 2022 are as follows, including renewal options that are reasonably certain to be exercised:
Year ending December 31: |  | (In thousands) |
2023 |  | $ | 19 |
2024 |  |  | 19 |
2025 |  |  | 5 |
Total lease payments |  |  | 43 |
Less imputed interest |  |  | (1 | )
Total |  | $ | 42 |
The lease term and discount rate at December 31, 2022 and 2021 were as follows:
|  | 2022 |  |  | 2021 |
Weighted-average remaining lease term (years) |  |  | 2.25 |  |  |  | 3.25 |
Weighted-average discount rate |  |  | 1.34 | % |  |  | 1.34 | %
Supplemental cash flow information for the years ended December 31, 2022 and 2021 related to leases was as follows:
|  | 2022 |  |  | 2021 |
|  | (In thousands) |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 19 |  |  | $ | 19 |
The Company also leases space to tenants under various operating leases. Lease income recorded under tenant leases was $53,000, $39,000 and $30,000 for the years ended December 31, 2022, 2021 and 2020, respectively. Future minimum lease payments to be received under tenant leases with initial or remaining terms in excess of one year total $51,000, $38,000, $20,000 and $7,000 for the years ended December 31, 2023, 2024, 2025 and 2026, respectively.

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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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