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Premises and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Premises and Equipment Premises and Equipment
Premises and equipment are carried at cost and consist of the following:
As of December 31,20222021
Land$6,404,000 $6,159,000 
Land improvements1,883,000 1,788,000 
Buildings30,873,000 30,685,000 
Equipment11,659,000 11,807,000 
50,819,000 50,439,000 
Less accumulated depreciation22,542,000 21,490,000 
Total premises and equipment$28,277,000 $28,949,000 

Future minimum receipts under lease agreements at December 31, 2022 by year and in the aggregate are:
2023$115,000 
2024116,000 
2025116,000 
2026116,000 
2027116,000 
Thereafter15,000 
$594,000 

Leases
As part of the acquisition of its branch in Belfast, Maine in December 2020, the Company entered into an operating lease pertaining to land upon which the branch is situated. As of December 31, 2022, the lease has a term of 20 years, including an option to renew. The discount rate used in determining the lease liability was 1.875%, the FHLB advance rate in December 2020 that corresponded to the lease term. Effective December 2021, the Company entered into an operating lease for a new branch facility in Brewer, Maine. As of December 31, 2022, the lease has a term of four years. The discount rate used in determining lease liability was 1.25%, corresponding to a synthesized rate for the same term; the synthesized rate was calculated based on several inputs including FHLB advance rates, brokered CD rates and US Treasury Bonds, all with five year terms.
The right‑of‑use asset and lease liability by lease type, and the associated balance sheet classifications as of December 31, 2022 and 2021 were as follows:

Balance Sheet Classification
20222021
Right-of-use assets:
Operating leasesPremises and equipment, net$737,000$822,000
Lease liabilities:
Operating leasesOther liabilities$737,000$822,000
Lease expense for the year ended December 31, 2022 related to these leases was $97,000. There was $34,000 lease expense for 2021 and none for 2020.

Future lease payments for operating leases with initial terms of one year or more as of December 31, 2022 are as follows:

2023$97,000
202497,000 
202597,000 
202691,000 
202728,000 
Thereafter431,000 
Total undiscounted lease payments841,000 
Less: imputed interest104,000 
Net lease liability$737,000