A summary of the cost and accumulated depreciation and amortization of premises and equipment is as follows:

 

 

 

December 31,

 

(In thousands)

 

2025

 

 

2024

 

Cost:

 

 

 

 

 

 

Land

 

$

2,658

 

 

$

2,658

 

Buildings

 

 

18,055

 

 

 

18,628

 

Leashold improvements

 

 

9,819

 

 

 

9,429

 

Furniture and equipment

 

 

16,403

 

 

 

25,740

 

Right of use asset

 

 

5,691

 

 

 

6,074

 

Construction in process

 

 

792

 

 

 

667

 

Total premises and equipment

 

 

53,418

 

 

 

63,196

 

Accumulated depreciation and amortization

 

 

(24,235

)

 

 

(34,698

)

Net premises and equipment

 

$

29,183

 

 

$

28,498

 

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.