LEASING ACTIVITIES

12 Months Ended

Dec. 31, 2024

Leasing Activities

LEASING ACTIVITIES

NOTE 17 LEASING ACTIVITIES

As of December 31, 2024, the Bank leases four branch offices and a former branch office now used as administrative 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, 2024 is 7.27 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, 2024 was 3.36%.

The Company’s operating lease costs for the years ended December 31, 2024 and 2023, as a result of the transactions discussed above, were $558,000 and $465,000, respectively.

The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. As of December 31, 2024, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands):

2025	$	554
2026		557
2027		578
2028		584
2029		492
Thereafter		1,243
Total lease payments		4,008
Less imputed interest		595
Total	$	3,413