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Premises and Equipment and Leases
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]

Note 4. Premises and Equipment and Leases

 

Year-end premises and equipment were as follows:

 

(In thousands)

  

December 31,

2021

    

December 31,

2020

  

Land

   $ 698     $ 698  

Leasehold improvements

     195       182  

Building

     4,438       4,256  

Furniture and equipment

     1,767       1,760  
      7,098       6,896  

Less: accumulated depreciation

     2,369       2,047  

Balance at end of period

   $ 4,729     $ 4,849  

 

Depreciation of premises and equipment totaled $322,000 and $412,000 for the years ended December 31, 2021 and 2020, respectively.

 

The Company leases certain office facilities and office equipment under operating leases. Certain of the leases contain provisions for renewal options, escalation clauses based on increases in certain costs incurred by the lessor, as well as free rent periods and tenant improvement allowances. The Company amortizes office lease incentives and rent escalations on a straight-line basis over the life of the respective leases. The Company has obligations under operating leases that expire between 2022 and 2024 with initial non-cancellable terms in excess of one year.

 

Under the lease accounting standards, right-of-use assets represent our right to utilize the underlying asset during the lease term, while the lease liability represents the obligation to make periodic lease payments over the life of the lease. As of December 31, 2021 and 2020, right-of-use assets and related lease liabilities totaled $1.4 million and $1.4 million, and $963,000 and $1.0 million, respectively, and are in other assets and other liabilities, respectively, on our accompanying consolidated balance sheets. As of December 31, 2021, the weighted average remaining lease term is 47 months, and the weighted average discount rate is 3.71%.

 

As of December 31, 2021, the minimum rental commitments under these noncancelable operating leases are as follows:

 

(In thousands)

        

2022

   $ 549  

2023

     274  

2024

     208  

2025

     204  

2026

     207  

2027 and thereafter

     54  

Total minimum rental payments

     1,496  

Less: Interest

     (63

)

Present value of lease liabilities

   $ 1,433  

 

The Company currently receives rental income from seven tenants in its headquarters building for office space the Company does not occupy. Aggregate future minimum rentals to be received under non-cancelable leases as of December 31, 2021 were $734,000 through 2027.