v3.25.2
PREMISES, EQUIPMENT AND LEASES
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
PREMISES, EQUIPMENT AND LEASES PREMISES, EQUIPMENT AND LEASES
A summary of premises, equipment and leases at December 31, 2024 and December 31, 2023 is as follows:
December 31,December 31,
(dollars in thousands)20242023
Land$15,986 $15,968 
Buildings and improvements83,296 78,104 
Furniture and equipment36,526 35,797 
Lease right-of-use assets8,830 7,673 
Total144,638 137,542 
Accumulated depreciation(58,928)(54,728)
Premises and equipment, net$85,710 $82,814 
    Depreciation expense for the years ended December 31, 2024, 2023 and 2022 was $5.0 million, $4.8 million, and $4.8 million, respectively.
The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 3 months to 13 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included in the remaining lease term if they are reasonably certain to be exercised. The Company had operating lease right-of-use assets of $8.8 million and $7.7 million as of December 31, 2024 and December 31, 2023, respectively, included in premises and equipment on our consolidated balance sheets. The operating lease liabilities of the Company were $10.1 million and $9.3 million as of December 31, 2024 and December 31, 2023, respectively, and are included in accrued interest payable and other liabilities on our consolidated balance sheets.
Information related to operating leases for the years ended December 31, 2024 and 2023 was as follows:
Years Ended December 31,
(dollars in thousands)20242023
Operating lease cost$1,989 $1,919 
Operating cash flows from leases2,373 2,256 
Right-of-use assets obtained in exchange for lease obligations2,889 2,470 
Weighted average remaining lease term6.9 years7.8 years
Weighted average discount rate3.66 %3.41 %
Net rent expense under operating leases, included in occupancy and equipment expense, was $1.4 million, $1.4 million and $1.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The projected minimum rental payments under the terms of the leases as of December 31, 2024 were as follows:
(dollars in thousands)Amount
Year ending December 31:
2025$1,768 
20261,824 
20271,708 
20281,659 
20291,445 
Thereafter3,103 
Total future minimum lease payments11,507 
Less imputed interest(1,395)
Total operating lease liabilities$10,112