Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Note 8. Leases

The Corporation leases various assets in the course of its operations that are subject to recognition on the balance sheet. The Corporation considers all of its leases to be operating leases and it has no finance leases. The leased assets may include equipment, and buildings and land (collectively real estate). The equipment leases are shorter-term than the real estate leases and generally have a fixed payment over a defined term without renewal options. Certain equipment leases have purchase options and it was determined the option was not reasonably certain to be exercised. The real estate leases are longer-term and may contain renewal options after the initial term, but none of the real estate leases contain a purchase option. The renewal options on real estate leases were reviewed and if it was determined the option was reasonably certain to be renewed, the option term was considered in the determination of the lease liability. There is only one real estate lease with a variable payment based on an index included in the lease liability. None of the

leases contain any restrictive covenants and there are no significant leases that have not yet commenced. The discount rate used to determine the lease liability is based on the Bank’s fully secured borrowing rate from the Federal Home Loan Bank for a term similar to the lease term. Operating lease expense is included in net occupancy expense in the consolidated statements of income.

Lease Cost:

The components of total lease cost were as follows for the period ending:

	For the years ended December 31,
(Dollars in thousands)	2025		2024
Operating lease cost	$	724	$	764
Short-term lease cost		15		3
Variable lease cost		162		156
Total lease cost	$	901	$	923

Supplemental Lease Information:

(Dollars in thousands)	For the years ended December 31,
Cash paid for amounts included in the measurement of lease liabilities:	2025		2024
Operating cash flows from operating leases	$	713	$	733
Weighted-average remaining lease term (years)		11.2		11.6
Weighted-average discount rate		3.64%		3.48%

Lease Obligations:

Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2025 are as follows:

(Dollars in thousands)
2026	$	601
2027		467
2028		416
2029		420
2030		397
2031 and beyond		2,412
Undiscounted cash flows		4,712
Imputed interest		(872)
Total lease liability	$	3,840