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Premises and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Premises and Equipment
Note 4 – Premises and Equipment

The following table presents the components of premises and equipment at December 31:

(Dollars in thousands)20242023
Land$1,072 $3,465 
Buildings and improvements7,779 13,393 
Furniture, fixtures and equipment14,931 18,300 
Software6,787 7,140 
Construction in progress270 45 
Leasehold improvements2,836 2,836 
 33,675 45,179 
Accumulated depreciation(21,200)(24,251)
Premises and equipment, net$12,475 $20,928 

Depreciation expense totaled $3.8 million, $4.6 million and $4.4 million for 2024, 2023 and 2022, respectively.
In December 2024, we completed a sale-leaseback transaction with a purchase price of $17.6 million. The sale was for four branch locations and the initial lease term is 15 years. The sale-leaseback transaction resulted in a pre-tax gain on sale of assets of $11.8 million. Lease liabilities and right-of-use assets totaled $15.5 million for the sale-leaseback transaction and the amounts are included in the total lease liabilities and right-of-use assets discussed below.

We lease certain premises and equipment under operating and finance leases. At December 31, 2024, we had lease liabilities totaling $28.1 million and right-of-use assets totaling $26.9 million, substantially all of which was related to operating leases. At December 31, 2024, the weighted-average remaining lease term for operating leases was 12.8 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 5.9%.

At December 31, 2023, we had lease liabilities totaling $14.0 million and right-of-use assets totaling $12.9 million, substantially all of which was related to operating leases. At December 31, 2023, the weighted-average remaining lease term for operating leases was 10.5 years, and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.1%.

Lease liabilities and right-of-use assets are reflected in accrued interest payable and other liabilities and accrued interest receivable and other assets, respectively.

The following shows lease costs for the years ended:
(Dollars in thousands)December 31, 2024December 31, 2023December 31, 2022
Operating lease cost$1,990 $1,795 $1,781 
Amortization of right-of-use assets, finance leases1 10 57 
Short-term lease cost— 8 32 
Variable lease cost— 38 38 
Sublease payments received(388)(385)— 
Total lease cost$1,603 $1,466 $1,908 

There were no sale-leaseback transactions, leveraged leases or lease transactions with related parties during the year ended December 31, 2024.

For operating leases with initial or remaining terms of one year or more as of December 31, 2024, the following table presents future minimum payments for the twelve month periods ended December 31:
(Dollars in thousands)Operating Leases
2025$3,234 
20263,169 
20273,241 
20283,261 
20293,023 
2030 and thereafter25,547 
Total future minimum lease payments$41,475 
Less: Amounts representing interest(13,398)
Present value of net future minimum lease payments$28,077 

Future minimum payments on finance leases were not material as of December 31, 2024.