Land, Premises and Equipment, Net

6 Months Ended

Jun. 30, 2024

Land, Premises and Equipment, Net

Land, Premises and Equipment, Net

NOTE 6 Land, Premises and Equipment, Net

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

	June 30,		December 31,
(dollars in thousands)	2024		2023
Land (1)	$	3,036	$	4,542
Buildings and improvements (1)		23,177		28,172
Leasehold improvements		2,657		2,657
Furniture, fixtures, and equipment		36,136		34,086
		65,006		69,457
Less accumulated depreciation		(47,678)		(51,517)
Total	$	17,328	$	17,940

(1) Excludes assets held for sale.

Depreciation expense was $0.7 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively. Depreciation expense was $1.3 million and $1.2 million for the six months ended June 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 offer of $5.3 million is greater than the property’s carrying value. On February 6, 2024, the Company entered into a purchase agreement to sell its branch in Shorewood, Minnesota for $2.8 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 offer of $2.8 million is greater than the property’s carrying value of $2.1 million. Total assets held for sale by the Company at June 30, 2024 were $3.8 million and were included in other assets on the Company’s consolidated balance sheet and not included in the table above.