
	December 31, 2024		December 31, 2023
Land and land improvements	$	248	$	248
Buildings		2,426		2,444
Furniture, fixtures and equipment		2,791		2,905
		5,465		5,597
Less: accumulated depreciation		(1,929)		(1,785)
	$	3,536	$	3,812

Depreciation expense for 2024, 2023 and 2022 totaled $486, $567, and $496, 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, 2024, the weighted-average remaining lease term for the Company’s operating leases was 8.8 years and the weighted-average discount rate was 7.47%. 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 $753, $687, and $568 for the years ended December 31, 2024, 2023 and 2022, respectively. The variable lease costs totaled $816, $681, and $301 for the years ended December 31, 2024, 2023 and 2022, 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.


2025	$	996
2026		919
2027		875
2028		894
2029		870
Thereafter		3,766
Total future minimum rental commitments		8,320
Less - amounts representing interest		(2,091)
Total operating lease liabilities	$	6,229