Leases

9 Months Ended

Sep. 30, 2021

12.

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, 2021 and 2020:

	Location in the Condensed	Three Months Ended				Nine Months Ended
	Consolidated Statements of Operations	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
		(Dollars in Thousands)				(Dollars in Thousands)
Operating lease expense ⁽¹⁾	Net occupancy and equipment	$	209	$	212	$	627	$	635
Operating lease income ⁽²⁾	Lease income	$	208	$	206	$	619	$	630

⁽¹⁾	Includes short-term lease costs. For the three- and nine-month periods ended September 30, 2021 and 2020, 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, 2021:

	Location in the Condensed
	Consolidated Balance Sheet	September 30, 2021
		(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	2,657
Operating lease liabilities	Other liabilities	$	2,726
Weighted-average remaining lease term (in years)			5.17
Weighted-average discount rate			3.04	%

The following table provides supplemental lease information for the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended
	September 30, 2021		September 30, 2020
	(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	523	$	552

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, 2021:

	Minimum Rental Payments
	(Dollars in Thousands)
2021	$	171
2022		625
2023		491
2024		443
2025		339
2026 and thereafter		937
Total future minimum lease payments	$	3,006
Less: Imputed interest		280
Total operating lease liabilities	$	2,726