Leases

12 Months Ended

Dec. 31, 2024

15.

LEASES

The Company is involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from two years to nine years, some of which include options to extend the leases for up to five years, and some of which include an option to terminate the lease within one year. The Bank also leases certain office facilities to third parties and classifies these leases as operating leases.

The following table provides a summary of the components of lease income and expense, as well as the reporting location in the consolidated statements of operations for the years ended December 31, 2024 and 2023:


		Year Ended
	Location	December 31, 2024		December 31, 2023
		(Dollars in Thousands)
Operating lease income (1)	Lease income	$	1,033	$	949
Operating lease expense (2)	Net occupancy and equipment	$	565	$	460

(1)

Operating lease income includes rental income from owned properties.

(2)

Includes short-term lease costs. For the years ended December 31, 2024 and 2023, short-term lease costs were nominal in amount.

The following table provides supplemental lease information for operating leases on the consolidated balance sheets as of December 31, 2024 and 2023:



	Location	December 31, 2024			December 31, 2023
		(Dollars in Thousands)			(Dollars in Thousands)
Operating lease right-of-use assets	Other assets	$	1,921		$	2,019
Operating lease liabilities	Other liabilities	$	1,972		$	2,055
Weighted-average remaining lease term (in years)			5.14			6.37
Weighted-average discount rate			4.08	%		4.10	%

The following table provides supplemental lease information for the consolidated statements of cash flows for the years ended December 31, 2024 and 2023:


	Year Ended
	December 31, 2024		December 31, 2023
	(Dollars in Thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	395	$	455

The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of December 31, 2024:


	Minimum Rental Payments
	(Dollars in Thousands)
2025	$	412
2026		419
2027		308
2028		269
2029		183
2030 and thereafter		746
Total future minimum lease payments	$	2,337
Less: Imputed interest		365
Total	$	1,972