Leases

3 Months Ended

Mar. 31, 2025

Note 14: Leases

The Company has operating and finance leases for certain banking offices and land under noncancelable agreements. Our leases have remaining lease terms that vary from less than one year up to twenty-eight years, some of which include options to extend the leases for various renewal periods. All options to renew are included in the current lease term when it is reasonably certain that the renewal options will be exercised.

The components of lease expense are as follows:


	For the three months ended
(In thousands)	March 31, 2025		March 31, 2024
Operating lease cost	$	49	$	49
Finance lease cost		429		108

Supplemental cash flow information related to leases was as follows:


	For the three months ended
(In thousands)	March 31, 2025		March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	46	$	45
Operating cash flows from finance leases		429		108
Financing cash flows from finance leases		111		32

Supplemental balance sheet information related to leases was as follows:



(In thousands, except lease term and discount rate)	March 31, 2025			December 31, 2024
Operating Leases:
Operating lease right-of-use assets	$	1,356		$	1,391
Operating lease liabilities		1,560			1,591

Finance Leases:
Finance lease right-of-use assets	$	16,478		$	16,676
Finance lease liabilities		16,655			16,745

Weighted Average Remaining Lease Term:
Operating leases	17.07 years			17.08 years
Finance leases	21.77 years			22.01 years

Weighted Average Discount Rate:
Operating leases		3.90	%		3.90	%
Finance leases		6.01	%		6.01	%

As of March 31, 2025, future maturities of lease liabilities are as follows:


Twelve Months Ending March 31,
(In thousands)	Operating Leases		Finance Leases
2026	$	116	$	361
2027		117		381
2028		123		401
2029		87		426
2030		71		450
Thereafter		1,046		14,636
Total future maturities of lease liabilities	$	1,560	$	16,655

The Company owns certain properties that it leases to unaffiliated third parties at market rates. Lease rental income was $61,000 and $55,000 for the three months ended March 31, 2025 and 2024, respectively. The lease agreements in which the Company is the lessor are a mix of operating and finance leases.