PREMISES AND EQUIPMENT

6 Months Ended

Jun. 30, 2025

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

NOTE 9: PREMISES AND EQUIPMENT

Major classifications of premises and equipment, stated at cost, were as follows:


		June 30,			December 31,
		2025			2024

		(In Thousands)
Land		$	39,406		$	39,340
Buildings and improvements			108,622			107,525
Furniture, fixtures and equipment			73,063			69,916
Operating leases right of use asset			5,886			6,390
			226,977			223,171
Less: accumulated depreciation			92,640			90,705
		$	134,337		$	132,466

Leases. The Company records leases in accordance with ASU 2016-02, Leases (Topic 842). The amount of the right of use asset and corresponding lease liability will fluctuate based on the Company’s lease terminations, new leases and lease modifications and renewals. As of June 30, 2025, the lease right of use asset value was $5.9 million and the corresponding lease liability was $6.1 million. As of December 31, 2024, the lease right of use asset value was $6.4 million and the corresponding lease liability was $6.6 million. At June 30, 2025, expected lease terms ranged from 2.1 years to 13.4 years with a weighted-average lease term of 6.5 years. The weighted-average discount rate at June 30, 2025 was 3.99%.

For the three months ended June 30, 2025 and 2024, total lease expense was $402,000 and $413,000, respectively. For the six months ended June 30, 2025 and 2024, total lease expense was $821,000 and $895,000, respectively. The Company’s short-term leases related to offsite ATMs have both fixed and variable lease payment components, based on the number of transactions at the various ATMs. The variable portion of these lease payments is not material and the lease expense related to ATMs for the three months ended June 30, 2025 and 2024 was $79,000 and $90,000, respectively. The lease expense related to ATMs for the six months ended June 30, 2025 and 2024 was $156,000 and $171,000, respectively.

The Company does not sublease any of its leased facilities; however, it does lease to other parties portions of facilities that it owns. In terms of being the lessor in these circumstances, all of these lease agreements are classified as operating leases. In the three months ended June 30, 2025 and 2024, income recognized from these lease agreements was $358,000 and $339,000, respectively, and was included in occupancy and equipment expense. In the six months ended June 30, 2025 and 2024, income recognized from these lease agreements was $678,000 and $680,000, respectively, and was included in occupancy and equipment expense.


		June 30, 2025			December 31, 2024

		(In Thousands)
Statement of Financial Condition
Operating leases right of use asset		$	5,886		$	6,390
Operating leases liability		$	6,091		$	6,621

		For the Three Months Ended
		June 30, 2025			June 30, 2024

		(In Thousands)
Statement of Income
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset)		$	402		$	413

Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	401		$	407
Right of use assets obtained in exchange for lease obligations:
Operating leases		$	358		$	339


		For the Six Months Ended
		June 30, 2025			June 30, 2024

		(In Thousands)
Statement of Income
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset)		$	821		$	895

Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	816		$	869
Right of use assets obtained in exchange for lease obligations:
Operating leases		$	678		$	680

At June 30, 2025, future expected lease payments for leases with terms exceeding one year were as follows (in thousands):


2025		$	655
2026			1,334
2027			1,285
2028			1,018
2029			663
2030			506
Thereafter			1,482

Future lease payments expected			6,943

Less: interest portion of lease payments			(852)

Lease liability		$	6,091