
	December 31, 2023		December 31, 2022
Land and land improvements	$	248	$	248
Buildings		2,444		2,295
Furniture, fixtures and equipment		2,905		3,321
		5,597		5,864
Less: accumulated depreciation		(1,785)		(2,086)
	$	3,812	$	3,778

Depreciation expense for 2023, 2022 and 2021 totaled $567, $496, and $435, respectively.

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration.

The leases in which the Company is the lessee are comprised of real estate property for branches and offices and for equipment with terms extending through 2034. All of our leases are classified as operating leases, and therefore are required to be recognized on the consolidated balance sheets as a right-of-use (“ROU”) asset and a corresponding operating lease liability.

The calculated amounts of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion which were considered, as applicable, in the calculation of the ROU assets and lease liabilities. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the rate implicit in the lease is used whenever this rate is readily determinable. As this rate is not readily determinable in our operating leases, the Company utilizes its incremental

borrowing rate at lease inception, on a collateralized basis, over a similar term. At December 31, 2023, the weighted-average remaining lease term for the Company’s operating leases was 8.9 years and the weighted-average discount rate was 7.21%.

The Company’s operating lease costs were $687, $568, and $461 for the years ended December 31, 2023, 2022 and 2021, respectively. The variable lease costs totaled $681, $301, and $292 for the years ended December 31, 2023, 2022 and 2021, respectively. As the Company elected not to separate lease and non-lease components for all classes of underlying assets and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.


2024	$	1,034
2025		820
2026		737
2027		687
2028		700
Thereafter		3,407
Total future minimum rental commitments		7,385
Less - amounts representing interest		(2,083)
Total operating lease liabilities	$	5,302