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Premises and Equipment

12 Months Ended

Dec. 31, 2024

Premises and Equipment

Premises and Equipment

Note 7: Premises and Equipment

Premises and equipment at December 31, were as follows:


		2024									2023
					Accumulated									Accumulated
					Depreciation/			Net Book						Depreciation/			Net Book
		Cost			Amortization			Value			Cost			Amortization			Value
Land		$	30,981		$	-		$	30,981		$	29,741		$	-		$	29,741
Buildings			61,428			27,413			34,015			58,311			25,911			32,400
Leasehold improvements			10,341			2,112			8,229			7,785			1,574			6,211
Furniture and equipment			63,884			49,798			14,086			57,447			46,489			10,958
Total Premises and Equipment		$	166,634		$	79,323		$	87,311		$	153,284		$	73,974		$	79,310

The Company had $1.4 million and $1.0 million of fixed assets held for sale as of December 31, 2024 and 2023, respectively. These fixed assets held for sale are reported with other assets on the Consolidated Balance Sheets.

The Company enters into lease arrangements in the normal course of business primarily for branch locations and certain ATMs. The Company’s leases have remaining terms ranging from six-months to 19.4 years, some of which include options to extend between five and ten years, ATMs leases are generally short-term in nature. All of our leases are operating leases.

At December 31, 2024, the Company had lease liabilities totaling $12.5 million and right-of-use assets totaling $7.4 million related to operating leases. At December 31, 2023, the Company had lease liabilities totaling $11.6 million and right-of-use assets totaling $7.1 million related to operating leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively.

Right-of-use asset and lease obligations by type of property are listed below.


December 31, 2024		Right-of-Use Asset			Lease Liability			Weight Average Lease Term in Years			Weight Average Discount Rate
Operating Leases
Land and building leases		$	7,359		$	12,465			13.7		4.72	%
Total operating leases		$	7,359		$	12,465			13.7		4.72	%


December 31, 2023		Right-of-Use Asset			Lease Liability			Weight Average Lease Term in Years			Weight Average Discount Rate
Operating Leases
Land and building leases		$	7,093		$	11,578			12.5		4.65	%
Total operating leases		$	7,093		$	11,578			12.5		4.65	%

During 2024, there was one lease termination with a right-of-use asset and lease liability balance of $68,333 and fees paid of $46,500, resulting in a loss of $46,500.

During 2024, there was one sale leaseback specific to a branch location. The transaction occurred with an unrelated party at arm’s length, there were no concessions or favorable terms on either the sale price or the subsequent lease terms. We recorded a gain of $31,311 to net gain/(loss) on sale of fixed assets, net of closing costs on the consolidated statements of income. The terms of the lease are 20 years with an escalating rent schedule, and there are no lease incentives. The calculation of the lease liability utilized an incremental borrowing rate of 4.61%.

Operating lease costs are listed below:


		2024			2023			2022
Operating lease cost		$	1,337		$	988		$	716
Short-term lease cost			54			64			60
Total operating lease cost		$	1,391		$	1,052		$	776

There were no sales and leaseback transactions, leverage leases, lease transactions with related parties or leases that had not yet been commenced during the periods ending December 31, 2024 or 2023.

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability as of December 31, 2024, is listed below.


Lease payments
Due in one year or less		$	2,095
Due in one year through two years			1,903
Due in two years through three years			1,847
Due in three years through four years			1,756
Due in four years through five years			1,692
Thereafter			5,824
Total lease payments			15,117
Discount on cash flows			(2,652)
Total lease liabilities		$	12,465