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LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
We have operating leases for 1 corporate office, 3 bank branch offices,1 former bank branch office, and 1 ATM location. Our leases have remaining lease terms of 0.75 years to 3.50 years. Some of the leases include an option to extend, the longest of which is for two 5 year terms. As of December 31, 2024, we have no additional lease commitments that have not yet commenced. Lease costs are included in non-interest expense/occupancy in the consolidated statement of operations. The Company also leases a portion of some of its facilities and receives rental income from such lease agreements, all of which are considered operating leases.
Twelve Months Ended
December 31, 2024December 31, 2023
The components of total lease costs were as follows:
Operating lease cost$450 $508 
Variable lease cost112 84 
Total lease cost$562 $592 
The components of total lease income were as follows:
Operating lease income$59 $41 
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$546 $545 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$2 $225 
December 31, 2024December 31, 2023
Supplemental balance sheet information related to leases was as follows:
Operating lease right-of-use assets (1)$815 $1,477 
Operating lease liabilities (2)$1,076 $1,686 
Weighted average remaining lease term in years; operating leases3.083.94
Weighted average discount rate; operating leases3.15 %3.20 %
(1) Operating lease right-of-use assets are recorded as other assets in the consolidated balance sheets.
(2) Operating lease liabilities are recorded as other liabilities in the consolidated balance sheets.
Cash obligations and receipts under lease contracts as of December 31, 2024, are as follows:
Fiscal years ending December 31,PaymentsReceipts
2025$486 $71 
2026416 37 
2027351 17 
2028129 16 
2029— 11 
Thereafter— — 
Total lease payments1,382 $152 
Less: effects of discounting(306)
Lease liability recognized$1,076 
In November of 2024, we announced the closure of our Faribault, Minnesota branch in February 2025. We considered the branch closure a triggering event and the remaining right of use asset will be amortized ratably over the period from the closure decision to the closure date. In 2024, an additional $46 amortization expense was recorded in other non-interest expense in the consolidated statements of operations.
In June of 2024, we closed our St Peter, Minnesota branch. In November of 2024, the St Peter lease was terminated. The net impact of the right of use asset write down and lease termination was a net cost of $77 recorded in 2024. This lease termination cost is included in other non-interest expense in the consolidated statements of operations.
In 2024, we recorded the remaining impairment of $66 for the Red Wing lease, previously closed in November 2022. This impairment loss is included in other non-interest expense in the consolidated statements of operations.
LEASES LEASES
We have operating leases for 1 corporate office, 3 bank branch offices,1 former bank branch office, and 1 ATM location. Our leases have remaining lease terms of 0.75 years to 3.50 years. Some of the leases include an option to extend, the longest of which is for two 5 year terms. As of December 31, 2024, we have no additional lease commitments that have not yet commenced. Lease costs are included in non-interest expense/occupancy in the consolidated statement of operations. The Company also leases a portion of some of its facilities and receives rental income from such lease agreements, all of which are considered operating leases.
Twelve Months Ended
December 31, 2024December 31, 2023
The components of total lease costs were as follows:
Operating lease cost$450 $508 
Variable lease cost112 84 
Total lease cost$562 $592 
The components of total lease income were as follows:
Operating lease income$59 $41 
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$546 $545 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$2 $225 
December 31, 2024December 31, 2023
Supplemental balance sheet information related to leases was as follows:
Operating lease right-of-use assets (1)$815 $1,477 
Operating lease liabilities (2)$1,076 $1,686 
Weighted average remaining lease term in years; operating leases3.083.94
Weighted average discount rate; operating leases3.15 %3.20 %
(1) Operating lease right-of-use assets are recorded as other assets in the consolidated balance sheets.
(2) Operating lease liabilities are recorded as other liabilities in the consolidated balance sheets.
Cash obligations and receipts under lease contracts as of December 31, 2024, are as follows:
Fiscal years ending December 31,PaymentsReceipts
2025$486 $71 
2026416 37 
2027351 17 
2028129 16 
2029— 11 
Thereafter— — 
Total lease payments1,382 $152 
Less: effects of discounting(306)
Lease liability recognized$1,076 
In November of 2024, we announced the closure of our Faribault, Minnesota branch in February 2025. We considered the branch closure a triggering event and the remaining right of use asset will be amortized ratably over the period from the closure decision to the closure date. In 2024, an additional $46 amortization expense was recorded in other non-interest expense in the consolidated statements of operations.
In June of 2024, we closed our St Peter, Minnesota branch. In November of 2024, the St Peter lease was terminated. The net impact of the right of use asset write down and lease termination was a net cost of $77 recorded in 2024. This lease termination cost is included in other non-interest expense in the consolidated statements of operations.
In 2024, we recorded the remaining impairment of $66 for the Red Wing lease, previously closed in November 2022. This impairment loss is included in other non-interest expense in the consolidated statements of operations.