Leases

9 Months Ended

Sep. 30, 2026

The Company is a lessee in several operating leases for office space and minor office equipment with non-cancellable terms in excess of one year. The Company determines if a contract contains a lease at the contract’s inception and when the terms of an existing contract change. These leases can contain renewal options or early termination periods ranging from one to five years. Because it is not reasonably certain whether the Company will exercise the renewal or termination options, the renewal or termination periods are disregarded when determining the lease term and the costs associated with the renewal or termination options are excluded from lease payments.

At the commencement date of the lease, the Company recognizes a lease liability and a right-of-use asset. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. The Company uses its incremental borrowing rate as the discount rate because the implicit rates of its leases are not readily determinable. The incremental borrowing rate is the rate of interest the Company would pay to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The right-of-use asset is subsequently measured throughout the lease term at the present value of the remaining lease payments, plus any prepaid lease payments, less the unamortized balance of lease incentives received. Lease expense is recognized on a straight-line basis over the lease term.

The weighted average lease remaining lease term and discount rate are as follows:


	September 30,
	2026		2025
Weighted average remaining lease term (years)	7.8		7.9
Weighted average discount rate (%)	4.6	%	3.3	%

The right-of-use assets arising from entering new operating leases, reductions to assets and liabilities due to termination, cash paid for operating leases, and rental expense (excluding operating expenses and real estate taxes) are as follows:





	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2026		2025		2026		2025
Right-of-use assets from entering new leases and remeasurements	$	19,561	$	1,042	$	26,113	$	4,612
Reductions of right-of-use asset due to termination	$	—	$	—	$	5,016	$	—
Reductions of lease liability due to termination	$	—	$	—	$	5,506	$	—
Cash paid for operating leases	$	6,682	$	5,391	$	18,156	$	16,468
Rental expense	$	5,613	$	4,949	$	16,295	$	14,576

Future minimum annual rentals required under the lease agreements, excluding additional payments for certain operating, tax, and maintenance costs as of September 30, 2026 are as follows:





($ in thousands)	Total
Remainder of 2026	$	6,781
2027	26,937
2028	25,738
2029	25,396
2030	23,524
Thereafter	82,266
Total	$	190,642

Less: Present value adjustment	34,320

Total lease liability	$	156,322