PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

NOTE 6 – PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows:

	2019			2018
Land and improvements	$	7,500		$	7,200
Buildings and leasehold improvements		26,777			26,033
Furniture and equipment		12,224			11,623
Assets purchased not yet placed in service		560			424
		47,061			45,280
Less: accumulated depreciation		(16,956	)		(15,895	)
Premises and equipment owned, net		30,105			29,385
Right of use asset related to operating leases (detailed below)		7,152			-
Premises and equipment owned, net	$	37,257		$	29,385

Operating Leases: The Company leases certain banking facilities and equipment under various agreements with original terms provide for fixed monthly payments over periods generally ranging from two to sixteen years, including renewal options. Certain leases contain renewal options and rent escalation clauses calling for rent increases of the term of the lease. Short-term leases of equipment are recognized on a straight-line basis over the lease term. As of December 31, 2019, the weighted average remaining lease term for operating leases was 9.4 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.21%.

Total lease expense for the year ended December 31, 2019, which is included in net occupancy and equipment expense, was $1,241, consisting of $103 short-term lease expense and $1,138 of operating lease expense.

The following table summarizes the future minimum rental commitments under operating leases:

2020	$	1,059
2021		1,013
2022		995
2023		778
2024		678
2025 and thereafter		3,495
Total undiscounted cash flows		8,018
Discounted cash flows		(866	)
Total lease liability	$	7,152