PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT

5. PREMISES AND EQUIPMENT

The following table presents premises and equipment as of December 31,

(In thousands)	2023		2022
Land and land improvements	$	6,881	$	6,853
Buildings		12,259		12,332
Furniture and equipment		27,085		25,484
Leasehold improvements		15,101		14,891
Projects in progress		1,817		1,046
		63,143		60,606
Less: accumulated depreciation		38,977		36,775
Total	$	24,166	$	23,831

The following table presents finance lease right-of-use assets as of December 31,

(In thousands)	2023		2022
Land and buildings	$	11,237	$	11,237
Less: accumulated depreciation		9,150		8,402
Total	$	2,087	$	2,835

Projects in progress represents costs associated with smaller renovation or equipment installation projects at various locations.

The Company recorded depreciation expense of $3.7 million, $3.5 million, and $3.2 million for the years ended December 31, 2023, 2022, and 2021, respectively.

The Company leases its corporate headquarters building under a capital lease, classified as a finance lease right-of-use asset in accordance with lease accounting guidance. The lease arrangement requires monthly payments through 2025. Related depreciation expense of $607,000 is included in each of the 2023, 2022 and 2021 results.

The Company also leases its Gladstone branch after completing a sale-leaseback transaction involving the property in 2011. The lease arrangement requires monthly payments through 2031. The deferred gain was removed as a cumulative-effect adjustment in accordance with lease accounting guidance. Related depreciation expense and accumulated depreciation of $141,000 is included in each of the 2023, 2022 and 2021 results.

The following is a schedule by year of future minimum lease payments under finance lease right-of-use asset, together with the present value of net minimum lease payments as of December 31, 2023:

(In thousands)
2024	$	1,456
2025		939
2026		215
2027		226
2028		226
Thereafter		677
Total minimum lease payments		3,739
Less: amount representing interest		309
Present value of net minimum lease payments	$	3,430