Leases

9 Months Ended

Sep. 30, 2020

11.

LEASES

The Bank and ALC are involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from less than one year to 13 years, some of which include options to extend the leases for up to five years, and some of which include an option to terminate the lease within one year. The Bank leases certain office facilities to third parties and classifies these leases as operating leases.

The following table provides a summary of the components of lease expense, as well as the reporting location in the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019:

	Location in the Condensed	Three Months Ended				Nine Months Ended
	Consolidated Statements of Operations	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
		(Dollars in Thousands)				(Dollars in Thousands)
Operating lease expense ⁽¹⁾	Net occupancy and equipment	$	212	$	206	$	635	$	627
Operating lease income ⁽²⁾	Lease income	$	206	$	212	$	630	$	633

⁽¹⁾	Includes short-term lease costs. For the three- and nine-month periods ended September 30, 2020 and 2019, short-term lease costs were nominal in amount.

⁽²⁾	Operating lease income includes rental income from owned properties.

The following table provides supplemental lease information for operating leases on the Condensed Consolidated Balance Sheet as of September 30, 2020:

	Location in the Condensed
	Consolidated Balance Sheet	September 30, 2020
		(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	3,109
Operating lease liabilities	Other liabilities	$	3,159
Weighted-average remaining lease term (in years)			6.07
Weighted-average discount rate			3.14	%

The following table provides supplemental lease information for the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019:

	Nine Months Ended
	September 30, 2020		September 30, 2019
	(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	552	$	574

The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of September 30, 2020:

	Minimum Rental Payments
	(Dollars in Thousands)
2020	$	173
2021		628
2022		558
2023		458
2024		438
2025 and thereafter		1,276
Total future minimum lease payments	$	3,531
Less: Imputed interest		372
Total operating lease liabilities	$	3,159