Note 6 - Land, Premises, and Equipment, Net

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 6 Land, Premises and Equipment, Net

Components of land, premises and equipment at September 30, 2024 and December 31, 2023 were as follows:

	September 30,			December 31,
(dollars in thousands)	2024			2023
Land (1)	$	2,775		$	4,542
Buildings and improvements (1)		22,096			28,172
Leasehold improvements		2,657			2,657
Furniture, fixtures, and equipment		36,519			34,086
		64,047			69,457
Less accumulated depreciation		(45,257	)		(51,517	)
Total	$	18,790		$	17,940

(1) Excludes assets held for sale.

Depreciation expense was $0.7 million and $0.6 million for the three months ended September 30, 2024 and 2023, respectively. Depreciation expense was $2.1 million and $1.9 million for the nine months ended September 30, 2024 and 2023, respectively.

On July 1, 2024, the Company entered into a purchase agreement to sell its South Fargo branch in Fargo, North Dakota. At June 30, 2024, the facility included assets with a carrying value of approximately $1.7 million. The sale of this facility during 2024 is likely, and the Company expects to record a gain on the sale upon closing, since the agreed upon purchase price of $5.1 million is greater than the property’s carrying value. The Company’s West Fargo, North Dakota branch is listed for sale for $3.8 million and is expected to sell within the next 12 months. At September 30, 2024, the facility included assets with a carrying value of approximately $0.4 million. The Company expects to record a gain on the sale upon closing, as the expected sale price is greater than the property’s carrying value. Total assets held for sale by the Company at September 30, 2024 were $2.1 million and was included in other assets on the Company’s consolidated balance sheet and not included in the table above.