PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2022

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

8.PREMISES AND EQUIPMENT:

Premises and equipment are summarized as follows:

	December 31,
(Dollar amounts in thousands)	2022		2021
Land	$	17,888	$	18,612
Building and leasehold improvements		70,310		73,739
Furniture and equipment		46,669		44,839
		134,867		137,190
Less accumulated depreciation		(68,720)		(67,668)
TOTAL	$	66,147	$	69,522

Aggregate depreciation expense was $4.8 million, $4.6 million and $4.4 million for 2022, 2021 and 2020, respectively.

On October 31, 2022, First Financial Corporation issued a press release announcing plans to optimize its banking center network as part of a plan to improve operating efficiencies and accommodate changing customer preferences. On January 31, 2023, the Corporation closed and consolidated seven of its seventy-two branches. These consolidations are projected to save the Corporation approximately $1.5 million per year in operating expenses, commencing in the first quarter of 2023. The Corporation recognized an impairment of $1.3 million on the value of the land and buildings on the owned buildings at these branches. One branch was leased, and no loss was recognized on the terminated lease.

The Company leases certain branch properties and equipment under operating leases. Rent expense was $1.2 million, $1.4 million, and $1.1 million for 2022, 2021, and 2020. Rent commitments, before considering renewal options that generally are present, were as follows:

2023	$	929
2024		563
2025		479
2026		329
2027		228
Thereafter		680
	$	3,208

See Note 19 for additional discussion on leases.