LEASES

12 Months Ended

Dec. 31, 2025

The Corporation enters into noncancellable lease arrangements primarily for some of its community banking offices. Certain lease arrangements contain clauses requiring increasing rental payments over the lease term, which are generally contractually stipulated. Many of these lease arrangements provide the Corporation with the option to renew the lease arrangement after the initial lease term. These options are included in determining the lease term used to establish the right-of-use assets and lease liabilities, when it is reasonably certain the Corporation will exercise its renewal option. As most of the Corporation’s leases do

not have a readily determinable implicit rate, the incremental borrowing rate is primarily used to determine the discount rate for purposes of measuring the right-of-use assets and lease liabilities. The Corporation’s lease arrangements do not contain any material residual value guarantees or material restrictive covenants. The increases in ROU assets and lease liabilities are due to assumed leases as a result of the Acquisition.

The following ROU assets and lease liabilities are reported within the Consolidated Statements of Condition as follows:


(Dollars in thousands)	December 31, 2025			December 31, 2024
Operating Leases:
ROU assets	$	4,155		$	2,663
Lease liabilities	4,451			2,764
Weighted average remaining lease term	5.8 years			5.7 years
Weighted average discount rate	3.09		%	2.63		%

Supplemental cash flow information related to operating leases for the years ended December 31:


(In thousands)	2025		2024		2023
Operating cash flows from operating leases	$	1,353	$	917	$	924

As of December 31, 2025, the Corporation did not have any significant additional operating or finance leases that had not yet commenced.

The following summarizes the remaining scheduled future minimum lease payments for operating leases as of December 31, 2025:


Year	(In thousands)
2026	$	1,050
2027	860
2028	829
2029	701
2030	496
Thereafter	962
Total minimum lease payments	4,898
Less: amount representing interest 1	447
Present value of net minimum lease payments	$	4,451

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1Amount necessary to reduce net minimum lease payments to present value calculated at the Corporation’s incremental borrowing rate.