Leases

6 Months Ended

Jun. 30, 2025

Leases

Leases

(6) Leases

As of June 30, 2025, the Bank had operating right of use assets of $3.7 million and operating lease liabilities of $3.8 million. As of December 31, 2024, the Bank had operating right of use assets of $4.0 million and operating lease liabilities of $4.1 million. The Bank maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Bank if the option is not exercised. Leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term.

The following table presents lease cost and other lease information as of June 30, 2025 and 2024.

(Dollars in thousands)
	June 30, 2025			June 30, 2024
Operating lease cost	$	390		$	420
Other information:
Cash paid for amounts included in the measurement of lease liabilities		384			408
Operating cash flows from operating leases		-			-
Right-of-use assets obtained in exchange for new lease liabilities - operating leases		64			-
Weighted-average remaining lease term - operating leases		7.62			8.16
Weighted-average discount rate - operating leases		2.86	%		2.76	%

The following table presents lease maturities as of June 30, 2025.

(Dollars in thousands)
Maturity Analysis of Operating Lease Liabilities:	June 30, 2025
2025	$	378
2026		673
2027		634
2028		515
2029		423
Thereafter		1,694
Total		4,317
Less: Imputed Interest		(473	)
Operating Lease Liability	$	3,844