The following presents a summary of premises and equipment:
(Dollars in thousands)
December 31,20252024
Land$4,640 $3,920 
Premises and improvements37,427 36,499 
Furniture, fixtures and equipment20,798 21,482 
Total premises and equipment62,865 61,901 
Less: accumulated depreciation37,463 35,028 
Total premises and equipment, net$25,402 $26,873 

The following table presents a summary of depreciation expense:
(Dollars in thousands)Year ended December 31,
Fixed Asset TypeIncome Statement Line Item202520242023
Premises and improvementsNet occupancy$1,609 $1,907 $1,840 
Furniture, fixtures and equipmentEquipment1,846 2,027 2,165 
Total depreciation expense$3,455 $3,934 $4,005 

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.