LEASES

12 Months Ended

Dec. 31, 2024

The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2044 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use ("ROU") lease assets and are included in other assets on the consolidated balance sheet. The Company’s corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

NOTE 22 - LEASES (continued)

Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as practical expedient of the lease standard.

The following is a maturity analysis of the operating lease liabilities as of December 31, 2024:


Years ending December 31, (in thousands)	Operating Lease Obligation
2025	$	822
2026	792
2027	810
2028	770
2029	644
2030 and thereafter	5,267
Total undiscounted lease payments	9,105
Less imputed interest	(2,328)
Lease liability	$	6,777
Right-of-use asset	$	6,777


	Year Ended		Year Ended		Year Ended
(dollars in thousands)	December 31, 2024		December 31, 2023		December 31, 2022
Lease cost
Operating lease cost	$	742	$	724	$	667
Short-term lease cost	7		18		22
Total lease cost	$	749	$	742	$	689


Other information
Operating cash outflows from operating leases	$	742		$	724		$	667
Weighted-average remaining lease term - operating leases	7.6 years			6.3 years			7.3 years
Weighted average discount rate - operating leases	3.7		%	2.5		%	2.5		%