Leases

12 Months Ended

Dec. 31, 2025

The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) asset and lease liabilities. As of December 31, 2025, the Company has operating lease ROU assets of $5.9 million and operating lease liabilities of $5.9 million. As of December 31, 2024, the Company has operating lease ROU assets of $7.5

million and operating lease liabilities of $7.5 million. The Company does not have any agreements that are classified as finance leases.

The following table presents additional information about the Company's operating leases for the years indicated:


(In Thousands)	2025		2024
Lease Cost
Operating lease cost(1)	$3,060		$2,975
Short term lease cost(1)	247		141
Total lease cost	$3,307		$3,116

Other information
Operating leases - operating cash flows	$2,738		$2,779
Weighted average lease term - operating leases, in years	13.25		11.57
Weighted average discount rate - operating leases	3.87	%	3.65	%
(1)Expenses are classified within occupancy expense on the Consolidated Statements of Income.

The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:


(In Thousands)			Operating Leases
2026			$1,601
2027			1,094
2028			831
2029			662
2030			308
Thereafter			3,238
Total minimum lease payments			$7,734
Less: amount of lease payment representing interest			(1,793)
Present value of future minimum lease payments			$5,941