Premises and equipment are carried at cost and consist of the following:


As of December 31,	2025		2024
Land	$	6,144,000	$	6,232,000
Land improvements	2,142,000		2,043,000
Buildings	34,748,000		33,033,000
Equipment	12,183,000		11,217,000
	55,217,000		52,525,000
Less accumulated depreciation	26,450,000		24,670,000


Total premises and equipment	$	28,767,000	$	27,855,000

Future minimum receipts under lease agreements at December 31, 2025 by year and in the aggregate are:


2026			$116,000
2027			116,000
2028			4,000
2029			4,000
2030			4,000
Thereafter			4,000
			$248,000

The Company enters into operating leases in the normal course of business primarily for bank branch locations. The Company's operating leases have remaining terms ranging from one to 17 years, including options to renew.

The right‑of‑use asset and lease liability by lease type, and the associated balance sheet classifications as of December 31, 2025 and 2024 were as follows:


Balance Sheet Classification
		2025	2024
Right-of-use assets:
Operating leases	Premises and equipment, net	$477,000	$565,000

Lease liabilities:
Operating leases	Other liabilities	$477,000	$565,000


As of December 31,	2025		2024
Operating lease weighted average remaining lease term (years)	15.3		14.7
Operating lease weighted average discount rate	1.79	%	1.73	%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$97,000		$97,000

Lease expense for the year ended December 31, 2025 related to these leases was $97,000. There was $97,000 in lease expense for 2024 and $97,000 for 2023.

Future lease payments for operating leases with initial terms of one year or more as of December 31, 2025 are as follows:


2026			$91,000
2027			28,000
2028			28,000
2029			28,000
2030			28,000
Thereafter			347,000

Total undiscounted lease payments			550,000
Less: imputed interest			73,000
Net lease liability			$477,000