Note 12 - Leases

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

12. LEASES

The Company leases office space and certain computers and related equipment.  From time to time, the Company subleases office space to other tenants.  Under the requirements of ASC 842, the Company determines if an arrangement is a lease at the inception date of the contract. Then, the Company measures the lease liability using an incremental borrowing rate that was calculated for each operating lease based on the term of the lease, the U.S. Treasury term interest rate, and an estimated spread to borrow on a secured basis.

Rent expense is recognized on a straight-line basis over the lease term and is included in business development, occupancy, and equipment expense.

As of  March 31, 2026, all of the leases to which the Company was a party were operating leases.  The weighted average remaining term of the leases was 8.0 years.  The weighted average discount rate for the leases was 6.05%. 

Maturities of operating lease liability payments consisted of the following.

FUTURE MATURITY OF LEASE LIABILITIES

(Dollars in Thousands)

	March 31, 2026
2026 - remaining	$	2,231
2027		3,015
2028		2,928
2029		2,534
2030		2,099
Thereafter		8,516
Total		21,323
Less imputed interest		(4,568	)
Lease obligation	$	16,755

During the three months ended March 31, 2026 and 2025, total cash payments of $723 and $361, respectively, were recorded as a reduction in the operating lease obligation.  No cash payments were made to acquire right of use assets.

For the three months ended  March 31, 2026 and 2025, rent expense, net of sublease income of $23 and $23, respectively, was $695 and $654, respectively.