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Leases

12 Months Ended

Dec. 31, 2024

10. Leases

As of December 31, 2024, the Company leases real estate for seven branch offices and two administrative offices under various lease agreements. All of our leases are classified as operating leases.

The calculated amount of the right-of-use (“ROU”) assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s leases have maturities which range from 2024 to 2048, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The weighted average remaining life of the lease terms for these leases was 15.7 and 10.1 years as of December 31, 2024 and 2023, respectively. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company calculated a weighted average discount rate of 3.91% and 2.43% in determining the lease liability as of December 31, 2024 and 2023, respectively.

For the years ended December 31, 2024 and 2023, total operating lease costs were $782 and $717, respectively, and were included in occupancy and other expense. The ROU asset, included in other assets, was $7,307 and $6,239 as of December 31, 2024 and 2023, respectively. The corresponding lease liability, included in accrued expenses and other liabilities was $7,386 and $6,307 as of December 31, 2024 and 2023, respectively.

Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2024 were as follows:


Years ending December 31:
2025	$	757
2026		745
2027		705
2028		708
2029		714
Thereafter		6,814
Total future minimum lease payments		10,443
Amounts representing interest		(3,057)
Present Value of Net Future Minimum Lease Payments	$	7,386