PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2023

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

8.PREMISES AND EQUIPMENT:

Premises and equipment are summarized as follows:

	December 31,
(Dollar amounts in thousands)	2023		2022
Land	$	17,379	$	17,888
Building and leasehold improvements		68,166		70,310
Furniture and equipment		52,201		46,669
		137,746		134,867
Less accumulated depreciation		(70,460)		(68,720)
TOTAL	$	67,286	$	66,147

Aggregate depreciation expense was $5.4 million, $4.8 million and $4.6 million for 2023, 2022 and 2021, 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, $1.2 million, and $1.4 million for 2023, 2022, and 2021. Rent commitments, before considering renewal options that generally are present, were as follows:

2024	$	890
2025		865
2026		798
2027		773
2028		663
Thereafter		2,205
	$	6,194

See Note 19 for additional discussion on leases.