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Leases

3 Months Ended

Mar. 31, 2026

8. Leases

As of March 31, 2026, the Company leased real estate for seven branch offices and one administrative office under various lease agreements. All of our leases are classified as operating leases.

The calculated amount of the right-of-use assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present the value of the minimum lease payments. The Company’s leases have maturities which range from 2030 to 2048, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. The weighted average remaining life of the lease terms for these leases was 14.8 years and 15.2 years as of March 31, 2026 and December 31, 2025, respectively. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at each lease commencement date. The weighted average discount rate for operating leases as of March 31, 2026 and December 31, 2024 was 4.14% and 4.12%, respectively.

For the three months ended March 31, 2026 and 2025, total operating lease costs were $183 and $205, respectively, and were included in occupancy and other expense. The ROU asset, included in other assets, was $6,063 and $6,045 and the corresponding lease liability, included in accrued expenses and other liabilities was $6,169 and $6,144 as of March 31, 2026 and December 31, 2025, respectively.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2026 were as follows:


Years ending December 31:
2026	$	539
2027		715
2028		701
2029		654
2030		604
Thereafter		5,497
Total future minimum lease payments		8,710
Amounts representing interest		(2,541)
Present Value of Net Future Minimum Lease Payments	$	6,169