Leases

12 Months Ended

Dec. 31, 2024

For the Company, material leases consist of operating leases on our facilities, mainly branch leases; leases 12 months or less and immaterial equipment leases have been excluded.

As of December 31, 2024, the Company had 16 active operating real estate leases. The Company's leased facilities are contracted under various non-cancelable operating leases, most of which provide options to the Company to extend the lease periods and include periodic rent adjustments. While the Company typically exercises its option to extend lease terms, the lease contains provisions that allow the Company, upon notification, to terminate the lease at the end of the lease term, or any option period. Several real estate leases also provide the Company the right of first refusal should the property be offered for sale.

Lease expenses for the year ended December 31, 2024 amounted to $1.7 million, compared to $1.6 million for both of the years ended December 31, 2023 and 2022. Variable lease costs and short-term lease expenses included in lease expense during these periods were immaterial.

The weighted average remaining lease term for operating leases at December 31, 2024 and 2023 was 27.6 years and 28.4 years, respectively. The weighted average discount rate was 3.55% at both December 31, 2024 and 2023.

At December 31, 2024, the remaining undiscounted cash flows by year of these lease liabilities were as follows:


(Dollars in thousands)	Operating Leases
2025	$	1,457
2026	1,468
2027	1,474
2028	1,477
2029	1,481
Thereafter	30,241
Total lease payments	$	37,598
Less: Imputed interest	13,749
Total lease liability	$	23,849