LEASES

3 Months Ended

Mar. 31, 2026

Leases [Abstract]

LEASES

LEASES

Operating Leases

The Corporation leases certain properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of March 31, 2026, the weighted average remaining lease term was 5.76 years with a weighted average discount rate of 3.59%. Rent expense was $0.3 million for the three months ended March 31, 2026. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees.

Leased properties as of March 31, 2026 and December 31, 2025 classified as operating leases consist of the following (in thousands):

	March 31, 2026		December 31, 2025
Operating lease right-of-use assets	$	4,755	$	5,446
Less: accumulated amortization	(211)		(771)
Add: new leases/lease modifications	941		80
Operating lease right-of-use-assets, net	$	5,485	$	4,755

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2026 (in thousands):

Year	Amount
2026	$	871
2027	1,178
2028	1,051
2029	1,038
2030	913
2031 and thereafter	1,232
Total minimum lease payments	6,283
Less: amount representing interest	(604)
Present value of net minimum lease payments	$	5,679

As of March 31, 2026, the Corporation had no operating leases that were signed but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2044. As of March 31, 2026, the weighted average remaining lease term of finance leases was 10.58 years with a weighted average discount rate of 4.10%. The Corporation has included these leases in premises and equipment as of March 31, 2026 and December 31, 2025 as follows (in thousands):

	March 31, 2026		December 31, 2025
Buildings	$	6,507	$	6,507
Less: accumulated amortization	(3,710)		(3,615)
Net book value	$	2,797	$	2,892

The following is a schedule by year of future minimum lease payments under finance leases, together with the present value of net minimum lease payments as of March 31, 2026 (in thousands):

Year	Amount
2026	$	379
2027	505
2028	505
2029	511
2030	317
2031 and thereafter	2,119
Total minimum lease payments	4,336
Less: amount representing interest	(980)
Present value of net minimum lease payments	$	3,356

As of March 31, 2026, the Corporation had one finance lease for a branch in West Seneca, New York that was signed, but had not yet commenced.

Related Party Transactions

The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February, 2033 from a member of the Corporation's Board of Directors with monthly rent and CAM related expenses totaling $9 thousand per month. Rent and CAM related expenses paid to this Board member totaled $28 thousand for each of the three month periods ended March 31, 2026 and 2025, respectively.

LEASES

LEASES

Operating Leases

The Corporation leases certain properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of March 31, 2026, the weighted average remaining lease term was 5.76 years with a weighted average discount rate of 3.59%. Rent expense was $0.3 million for the three months ended March 31, 2026. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees.

Leased properties as of March 31, 2026 and December 31, 2025 classified as operating leases consist of the following (in thousands):

	March 31, 2026		December 31, 2025
Operating lease right-of-use assets	$	4,755	$	5,446
Less: accumulated amortization	(211)		(771)
Add: new leases/lease modifications	941		80
Operating lease right-of-use-assets, net	$	5,485	$	4,755

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2026 (in thousands):

Year	Amount
2026	$	871
2027	1,178
2028	1,051
2029	1,038
2030	913
2031 and thereafter	1,232
Total minimum lease payments	6,283
Less: amount representing interest	(604)
Present value of net minimum lease payments	$	5,679

As of March 31, 2026, the Corporation had no operating leases that were signed but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2044. As of March 31, 2026, the weighted average remaining lease term of finance leases was 10.58 years with a weighted average discount rate of 4.10%. The Corporation has included these leases in premises and equipment as of March 31, 2026 and December 31, 2025 as follows (in thousands):

	March 31, 2026		December 31, 2025
Buildings	$	6,507	$	6,507
Less: accumulated amortization	(3,710)		(3,615)
Net book value	$	2,797	$	2,892

The following is a schedule by year of future minimum lease payments under finance leases, together with the present value of net minimum lease payments as of March 31, 2026 (in thousands):

Year	Amount
2026	$	379
2027	505
2028	505
2029	511
2030	317
2031 and thereafter	2,119
Total minimum lease payments	4,336
Less: amount representing interest	(980)
Present value of net minimum lease payments	$	3,356

As of March 31, 2026, the Corporation had one finance lease for a branch in West Seneca, New York that was signed, but had not yet commenced.

Related Party Transactions

The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February, 2033 from a member of the Corporation's Board of Directors with monthly rent and CAM related expenses totaling $9 thousand per month. Rent and CAM related expenses paid to this Board member totaled $28 thousand for each of the three month periods ended March 31, 2026 and 2025, respectively.