LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

Operating Leases

The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of December 31, 2023, the weighted average remaining lease term was 7.9 years with a weighted average discount rate of 3.40%. Rent expense was $1.0 million for each of the years ended December 31, 2023 and 2022. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees.

Leased branch properties at December 31, 2023 and December 31, 2022 consist of the following (in thousands):

	2023		2022
Operating lease right-of-use asset	$	6,449	$	7,234
Less: accumulated amortization	(801)		(785)
Less: lease termination	—		—
Add: new lease agreement and modifications	—		—
Operating lease right-of-use-assets, net	$	5,648	$	6,449

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of December 31, 2023 (in thousands):

Year	Amount
2024	$	924
2025	841
2026	845
2027	854
2028	721
2029 and thereafter	2,446
Total minimum lease payments	6,631
Less: amount representing interest	(804)
Present value of net minimum lease payments	$	5,827

As of December 31, 2023, the Corporation had one operating lease that was signed on October 19, 2023, but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of December 31, 2023, the weighted average remaining lease term was 9.3 years with a weighted average discount rate of 3.42%. The Corporation has included these leases in premises and equipment as of December 31, 2023 and December 31, 2022.

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of December 31, 2023 (in thousands):

Year	Amount
2024	$	391
2025	409
2026	425
2027	428
2028	428
2029 and thereafter	1,560
Total minimum lease payments	3,641
Less: amount representing interest	(591)
Present value of net minimum lease payments	$	3,050

As of December 31, 2023, the Corporation had no finance leases that were signed, but had not yet commenced.

LEASES

LEASES

Operating Leases

The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of December 31, 2023, the weighted average remaining lease term was 7.9 years with a weighted average discount rate of 3.40%. Rent expense was $1.0 million for each of the years ended December 31, 2023 and 2022. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees.

Leased branch properties at December 31, 2023 and December 31, 2022 consist of the following (in thousands):

	2023		2022
Operating lease right-of-use asset	$	6,449	$	7,234
Less: accumulated amortization	(801)		(785)
Less: lease termination	—		—
Add: new lease agreement and modifications	—		—
Operating lease right-of-use-assets, net	$	5,648	$	6,449

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of December 31, 2023 (in thousands):

Year	Amount
2024	$	924
2025	841
2026	845
2027	854
2028	721
2029 and thereafter	2,446
Total minimum lease payments	6,631
Less: amount representing interest	(804)
Present value of net minimum lease payments	$	5,827

As of December 31, 2023, the Corporation had one operating lease that was signed on October 19, 2023, but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of December 31, 2023, the weighted average remaining lease term was 9.3 years with a weighted average discount rate of 3.42%. The Corporation has included these leases in premises and equipment as of December 31, 2023 and December 31, 2022.

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of December 31, 2023 (in thousands):

Year	Amount
2024	$	391
2025	409
2026	425
2027	428
2028	428
2029 and thereafter	1,560
Total minimum lease payments	3,641
Less: amount representing interest	(591)
Present value of net minimum lease payments	$	3,050

As of December 31, 2023, the Corporation had no finance leases that were signed, but had not yet commenced.