Premises and equipment are carried at cost and consist of the following:


As of December 31,	2024		2023
Land	$	6,232,000	$	6,319,000
Land improvements	2,043,000		1,960,000
Buildings	33,033,000		32,180,000
Equipment	11,217,000		11,161,000
	52,525,000		51,620,000
Less accumulated depreciation	24,670,000		22,936,000


Total premises and equipment	$	27,855,000	$	28,684,000

Future minimum receipts under lease agreements at December 31, 2024 by year and in the aggregate are:


2025			$116,000
2026			116,000
2027			116,000
2028			4,000
2029			4,000
Thereafter			8,000
			$364,000

The Company enters into operating leases in the normal course of business primarily for bank branch locations. The Company's operating leases have remaining terms ranging from four to 20 years, including options to renew.

The right‑of‑use asset and lease liability by lease type, and the associated balance sheet classifications as of December 31, 2024 and 2023 were as follows:


Balance Sheet Classification
		2024	2023
Right-of-use assets:
Operating leases	Premises and equipment, net	$565,000	$652,000

Lease liabilities:
Operating leases	Other liabilities	$565,000	$652,000


As of December 31,	2024		2023
Operating lease weighted average remaining lease term (years)	14.7		14.5
Operating lease weighted average discount rate	1.73	%	1.69	%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$97,000		$97,000

Lease expense for the year ended December 31, 2024 related to these leases was $97,000. There was $97,000 in lease expense for 2023 and $97,000 for 2022.

Future lease payments for operating leases with initial terms of one year or more as of December 31, 2024 are as follows:


2025			$97,000
2026			91,000
2027			28,000
2028			28,000
2029			28,000
Thereafter			375,000

Total undiscounted lease payments			647,000
Less: imputed interest			82,000
Net lease liability			$565,000