NOTE 5. BANK PREMISES AND EQUIPMENT

Bank premises and equipment consisted of the following as of the dates indicated (dollars in thousands).

Depreciation and amortization related to bank premises and equipment charged to noninterest expense was approximately $2.3 million, $2.5 million and $3.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

During the year ended  December 31, 2025, the Company recognized a loss of $8,000 included in “(Loss) gain on sale or disposition of fixed assets, net” in the accompanying consolidated statements of income related to the disposal of two ATMs.

During the year ended  December 31, 2024, the Company closed one branch in the Alabama market. The Company also transferred one piece of land previously being held for a future branch location, totaling $0.4 million, from “Bank premises and equipment, net” to “Other real estate owned, net” in the accompanying consolidated balance sheets. During the year ended  December 31, 2024, the Company recognized a gain of $0.4 million included in “(Loss) gain on sale or disposition of fixed assets, net” in the accompanying consolidated statements of income.