LEASING ACTIVITIES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASING ACTIVITIES

NOTE 17 LEASING ACTIVITIES

As of December 31, 2023, the Bank leases five branch offices and sublets a lot adjacent to another branch office. The lease agreements have maturity dates ranging from December 2028 to December 2041. It is assumed that there are currently no circumstances in which the leases would be terminated prior to expiration. The weighted average remaining life of the lease terms as of December 31, 2023 is 8.22 years.

The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded to the lease term for each transaction. This methodology is expected to be used for any other subsequent lease agreements. The weighted average discount rate for the leases as of December 31, 2023 was 3.43%.

The Company’s operating lease costs for the years ended December 31, 2023 and 2022, as a result of the transactions discussed above, were $465,000 and $456,000, respectively.

The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. As of December 31, 2023, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands):

 Schedule of future minimum rental commitments under the non-cancellable operating leases

2024	$	557
2025		557
2026		557
2027		578
2028		584
Thereafter		1,737
Total lease payments		4,570
Less imputed interest		718
Total	$	3,852