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Premises and Equipment
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Premises and Equipment Premises and Equipment
Premises and equipment are carried at cost and consist of the following:
As of December 31,20212020
Land$6,159,000 $6,178,000 
Land improvements1,788,000 1,710,000 
Buildings30,685,000 28,067,000 
Equipment11,807,000 11,878,000 
50,439,000 47,833,000 
Less accumulated depreciation21,490,000 20,582,000 
Total premises and equipment$28,949,000 $27,251,000 

Future minimum receipts under lease agreements at December 31, 2021 by year and in the aggregate are:
2022$129,000 
202345,000 
202420,000 
20254,000 
20264,000 
Thereafter19,000 
$221,000 

Leases
The Company adopted ASU No. 2016‑02, Leases, on January 1, 2019 with no required adjustment to prior periods presented or cumulative‑effect adjustment to retained earnings.

As part of the Belfast branch acquisition in December 2020, the Company entered into an operating lease pertaining to land upon which the branch is situated. As of December 31, 2021, the lease has a term of 21 years, including an option to renew. The discount rate used in determining the lease liability was 1.875%, the FHLB advance rate in December 2020 that corresponded to the lease term. Effective December 2021 the Company entered into an operating lease for a new branch facility in Brewer, Maine. As of December 31, 2021, the lease has a term of five years. The discount rate used in determining lease liability was 1.25%, corresponding to a synthesized rate for the same term; the synthesized rate was calculated based on several inputs including FHLB advance rates, brokered CD rates and US Treasury Bonds, all with five year terms.
The right‑of‑use asset and lease liability by lease type, and the associated balance sheet classifications as of December 31, 2021 and 2020 were as follows:

Balance Sheet Classification
20212020
Right-of-use assets:
Operating leasesPremises and equipment, net$822,000$511,000
Lease liabilities:
Operating leasesOther liabilities$822,000$511,000
Lease expense for the year ended December 31, 2021 related to these leases was $34,000. There was no lease expense for 2020 and 2019.

Future lease payments for operating leases with initial terms of one year or more as of December 31, 2021 are as follows:

2022$97,000
202397,000 
202497,000 
202597,000 
202691,000 
Thereafter459,000 
Total undiscounted lease payments938,000 
Less: imputed interest116,000 
Net lease liability$822,000