Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

Leases

We currently have operating leases for branch locations, a loan production office and our corporate office and in the past, we also had operating leases for certain equipment. The term for our leases begins on the date we become legally obligated for the

rent payments or we take possession of the building premises, whichever is earlier. Our real estate leases have initial terms ranging from one to 10.5 years and typically include one renewal option. As of March 31, 2025, our leases had remaining terms ranging from 11 months to 5.2 years. The operating leases require us to pay property taxes and operating expenses for the properties.

The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands):

	March 31, 2025		December 31, 2024
Operating lease right-of-use assets	$	3,546	$	3,725
Operating lease liabilities	$	3,828	$	4,013

The following table presents the components of lease expense for the periods indicated (in thousands):

	Three Months Ended March 31,
	2025		2024
Operating lease expense
Office leases	$	273	$	270
Sublease income	—		(3)
Net lease expense	$	273	$	267

The following table presents the schedule of lease liability payments at the date indicated (in thousands):

	March 31, 2025
Remainder of 2025	$	1,061
2026	1,012
2027	997
2028	844
2029	136
Thereafter	—
Total lease payments	4,050
Less: Present value discount	222
Present value of lease liabilities	$	3,828

Lease term and discount rate by lease type consisted of the following at the dates indicated:

	March 31, 2025		December 31, 2024
Weighted-average remaining lease term:
Office leases	4.0 years		4.3 years
Weighted-average discount rate (annualized):
Office leases	2.90	%	2.88	%

Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):

	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows
Office leases	$	279	$	278