LEASES

12 Months Ended

Dec. 31, 2025

NOTE 19—LEASES:

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to fourteen years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.

The following table summarizes supplemental cash flow and other information related to our operating leases:


	Year Ended December 31,
		2025	2024	2023
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)		$596	$2,874	$2,693
Weighted-average remaining lease term - operating leases		10.19 years	5.87 years	2.88 years
Weighted-average discount rate - operating leases		7.58%	5.94%	5.50%
Total lease costs1		$1,537	$3,115	$3,124

1 Included in Other general and administrative costs on the consolidated statements of income.

The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2025:


Maturity of Lease Liabilities
2026	$	660
2027	552
2028	476
2029	367
2030	225
Thereafter	2,012
Total future minimum lease payments	$	4,292
Less: Imputed interest	(1,418)
Present value of future minimum lease payments	$	2,874