Note 6 - Premises and Equipment

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 6 – Premises and Equipment

Premises and equipment are summarized as of December 31, 2024 and 2023:

	Estimated
	Useful Life
	(Years)		2024		2023
	(dollars in thousands)
Land		-	$	5,253	$	6,732
Buildings		10-25		11,043		11,043
Furniture, fixtures and equipment		3-7		30,746		28,548
Leasehold improvements		10-20		28,325		27,633
Subtotal				75,367		73,956
Less: accumulated depreciation, amortization and fair value adjustments				46,920		43,177
Total premises and equipment, net			$	28,447	$	30,779

Depreciation and amortization expense of premises and equipment was $4.4 million, $4.5 million and $3.9 million for 2024, 2023 and 2022, respectively.

Finance Leases: The Company has a lease agreement for a building accounted for as a finance lease. The lease arrangement requires monthly payments through 2028. As of December 31, 2024, the weighted average remaining term for the finance lease was 3.9 years and the weighted average discount rate used in the measurement of finance lease liabilities was 6.0%. Total finance lease costs for the year ended December 31, 2024 was $0.3 million.

The Company has included this lease in premises and equipment as follows December 31, 2024 and 2023:

	2024		2023
	(dollars in thousands)
Finance lease	$	3,423	$	3,423
Less: accumulated amortization		2,738		2,567
	$	685	$	856

The following is a schedule by year of future minimum lease payments under the finance lease, together with the present value of net minimum lease payments as of December 31, 2024 (dollars in thousands):

2025	$	353
2026		353
2027		353
2028		322
Thereafter		-
Total minimum lease payments		1,381
Less amount representing interest		147
Present value of net minimum lease payments	$	1,234

Operating Leases: The Company leases certain premises and equipment under operating leases. As of December 31, 2024, the Company had lease liabilities totaling $15.5 million and right-of-use assets totaling $14.5 million. As of December 31, 2024, the weighted average remaining lease term for operating leases was 6.3 years and the weighted average discount rate used in the measurement of operating lease liabilities was 4.1%. Total operating lease costs for the year ended December 31, 2024 were $3.5 million

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:

	December 31,
	2024
	(dollars in thousands)
Lease payments due:
Less than 1 year	$	3,576
1 year through less than 2 years		3,507
2 years through less than 3 years		2,863
3 years through less than 4 years		2,384
4 years through 5 years		1,141
After 5 years		4,380
Total undiscounted cash flows		17,851
Impact of discounting		(2,353	)
Total lease liability	$	15,498