Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

14. Leases

Primero leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2028. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable operating lease expiring in 2029. Nodak Insurance leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2029. In addition, Nodak Insurance leases server equipment under a non-cancellable finance lease expiring in 2026.

We determine whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property or equipment for a period of time in exchange for consideration. We generally must also have the right to obtain substantially all of the economic benefits from the use of the property and equipment. Lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates based on the floating interest rate on our Line of Credit with Wells Fargo Bank, N.A. at the lease commencement date, as rates are not implicitly stated in most leases. Lease liabilities are included in accrued expenses and other liabilities and right-of-use assets are included in other assets in the Consolidated Balance Sheets.

There were expenses of $115 and $122 related to these leases during the three months ended March 31, 2025 and 2024, respectively.

Additional information regarding the Company’s leases are as follows:

	As of and For the Three Months Ended March 31,
	2025		2024
Operating lease cost	$	91	$	96
Finance lease cost:
Amortization of right-of-use assets		20		20
Interest on lease liabilities		4		6
Finance lease cost		24		26
Total lease cost	$	115	$	122
Other information on leases:
Cash payments included in operating cash flows from operating leases	$	97	$	101
Cash payments included in operating cash flows from finance leases		4		6
Cash payments included in financing cash flows from finance leases		26		25
Right-of-use assets obtained in exchange for new operating lease liabilities		—		—
Right-of-use assets obtained in exchange for new finance lease liabilities		—		—
Weighted average discount rate – operating leases		4.47%		3.94%
Weighted average discount rate – finance leases		8.50%		8.50%
Weighted average remaining lease term in years – operating leases		4.4 years		5.1 years
Weighted average remaining lease term in years – finance leases		1.6 years		2.6 years

The following table presents the contractual maturities of the Company’s lease liabilities for each of the five years in the period ending December 31, 2029, and thereafter, reconciled to our lease liability at March 31, 2025:

Year ending December 31,	Operating Leases		Finance Leases		Total
2025 (nine months remaining)	$	296	$	90	$	386
2026		396		100		496
2027		401		—		401
2028		376		—		376
2029		212		—		212
Thereafter		—		—		—
Total undiscounted lease payments		1,681		190		1,871
Less: present value adjustment		143		11		154
Lease liability at March 31, 2025	$	1,538	$	179	$	1,717