LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2025

LEASE COMMITMENTS

LEASE COMMITMENTS

9. LEASE COMMITMENTS

The Company has operating and financing leases for several office locations and equipment. Several assumptions and judgments were made when applying the requirements of ASC 842 to the Company’s lease commitments, including the allocation of consideration in the contracts between lease and non-lease components, determination of the lease term, and determination of the discount rate used in calculating the present value of the lease payments. See Note 1 for information on policy elections.

The following table presents the lease cost associated with both operating and financing leases for the years ended December 31, 2025 and 2024.

	YEAR ENDED DECEMBER 31,
		2025		2024
	(IN THOUSANDS)
Lease cost
Financing lease cost
Amortization of right-of-use asset	$	225	$	225
Interest expense		100		108
Operating lease cost		252		251
Total lease cost	$	577	$	584
Cash paid on leases
Financing leases	$	288	$	276
Operating leases		244		241
Total cash paid on leases	$	532	$	517

The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at December 31, 2025 and 2024.

	AT DECEMBER 31,
	2025				2024
	OPERATING		FINANCING		OPERATING		FINANCING
Weighted-average remaining term (years)	7.5		12.3		8.5		13.1
Weighted-average discount rate	4.30	%	3.84	%	4.31	%	3.86	%

The following table presents the undiscounted cash flows due related to operating and financing leases as of December 31, 2025 and 2024, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets.

DECEMBER 31, 2025
	OPERATING		FINANCING
	(IN THOUSANDS)
Undiscounted cash flows due in:
2026	$	240	$	291
2027		208		278
2028		205		246
2029		207		223
2030		210		233
Thereafter		610		1,895
Total undiscounted cash flows		1,680		3,166
Discount on cash flows		(254)		(665)
Total lease liabilities	$	1,426	$	2,501

DECEMBER 31, 2024
	OPERATING		FINANCING
	(IN THOUSANDS)
Undiscounted cash flows due in:
2025	$	233	$	288
2026		223		291
2027		202		278
2028		205		246
2029		207		223
Thereafter		821		2,128
Total undiscounted cash flows		1,891		3,454
Discount on cash flows		(319)		(765)
Total lease liabilities	$	1,572	$	2,689

The Company leased approximately 1,049 square feet of office space within its headquarters building to a Director of the Company until February 20, 2025. The amount paid by this related party totaled $2,000 and $13,000 for the years ended December 31, 2025 and 2024, respectively, and is reported in net occupancy expense on the Consolidated Statements of Operations.