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Note 12 - Leases | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | Note 12. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016 - 02 “Leases” (Topic 842 ) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Patriot has ten non-cancelable operating leases, including four Bank branch locations and four for administrative and operational space, one ITM location, and one equipment lease. The leases expire on various dates through 2032 and some include renewal options. Most of the leases contain rent escalation provisions, as well as renewal options for one or more periods. The last potential year the leases can be extended through 2037. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company's consolidated balance sheets. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated balance sheets as a right-of-use (“ROU”) asset and a corresponding lease liability. Renew periods were included in the future cashflows for purposes of calculating the ROU and lease liability. The Company has no finance leases (previously referred to as a capital lease). Operating leases are recorded as a ROU lease assets and are included in other assets on the consolidated balance sheet. The Company's corresponding lease obligations are included in accrued expenses and other liabilities on the consolidated balance sheet. ROU lease assets represent the Company's right to use an underlying asset for the lease term and lease obligations represent the Company's obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As of December 31, 2020 and 2019, the Company recognized ROU assets of $2.7 million and $3.2 million, respectively, and lease liabilities of $2.9 million and $3.3 million, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets. At the time of adoption on January 1, 2019, a cumulative-effect adjustment of $11,000 was recorded to the accumulated deficit on the consolidated balance sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as practical expedient of the standard. The Company elected to separate lease and non-lease components. The fixed lease costs are recognized as ROU lease assets and Lease liability. The variable lease cost primarily represents variable payments such as common area maintenance and utilities, which are included in the occupancy and equipment expenses on the consolidated statements of operations. For the year ended December 31, 2020, the fixed lease costs and variable lease costs for the non-cancelable operating leases were $565,000 and $38,000, respectively. For the year ended December 31, 2019, the fixed lease costs and variable lease costs for the non-cancelable operating leases were $517,000 and $27,000, respectively. The following is a maturity analysis of the operating lease liabilities as of December 31, 2020:
(in thousands) |  | Operating lease |
Years ending December 31, |  | Obligation |
2021 |  | $ | 560 |
2022 |  |  | 486 |
2023 |  |  | 458 |
2024 |  |  | 350 |
2025 |  |  | 238 |
Thereafter |  |  | 1,325 |
Total undiscounted lease payments |  | $ | 3,417 |
Less imputed interest |  |  | (552 | )
Present value of operating lease liabilities |  | $ | 2,865 |
Operating lease right-of-use asset |  | $ | 2,739 |
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |
Lease cost |  |  |  |  |  |  |  |
Operating lease cost |  | $ | 565 |  |  | $ | 517 |
Short-term lease cost |  |  | 18 |  |  |  | 119 |
Total lease cost |  | $ | 583 |  |  | $ | 636 |
Other information |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 543 |  |  | $ | 459 |
|  | December 31, |
|  | 2020 |  |  | 2019 |
Weighted -average remaining lease term - operating leases (in years) |  |  | 9 |  |  |  | 10 |
Weighted -average discount rate - operating leases |  |  | 3.48 | % |  |  | 3.48 | %
As of December 31, 2020 and 2019, the undiscounted lease payments were $3.4 million and $3.9 million, respectively. The lease payments were not reduced by minimum sublease rentals of $1.7 million and $2.0 million due in the future under non-cancelable subleases, respectively. Rent expense for operating leases is recognized in earnings on a straight-line basis over the base term of the respective lease and is included in the consolidated statement of operations as a component of Occupancy and Equipment expense. For the years ended December 31, 2020, 2019 and 2018, total rent expense for cancellable and non-cancellable operating leases was $583,000, $636,000, and $593,000, respectively. For the years ended December 31, 2020, 2019 and 2018, Patriot recognized gross rental income of $523,000, $589,000, and $413,000 offset by rental costs of $5,000, $5,000, and $5,000, 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 http://asc.fasb.org/subtopic&trid=77888251 + Details
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