Leases

9 Months Ended

Sep. 30, 2025

Note 11.

Leases

The Company has three operating lease agreements, each for the use of office space in the ordinary course of business. The original term of the first lease was to automatically renew on an annual basis and was amended on December 26, 2024, when the Company and its subsidiary, Bankers Fidelity Life Insurance Company, entered into a Second Amendment to the Lease Agreement (the “Second Amendment”) with 4370 Peachtree LLC. The Second Amendment amends the Lease Agreement, dated November 1, 2007, by and among the same parties (as previously amended, the “Lease Agreement”), pursuant to which the Company leases space for its principal offices and for some of its insurance operations in an office building located in Atlanta, Georgia. Pursuant to the Second Amendment, the Lease Agreement was modified to increase the base rent payable by the Company, beginning January 1, 2025. The Second Amendment also provides for rent adjustment on January 1, 2027, January 1, 2030 and each five years thereafter.

The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

The original term of the third lease was three years and renewed for an additional three years, effective August 1, 2025 with a termination date on July 31, 2028. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for the nine months ended September 30, 2025 and September 30, 2024 was $890 and $761, respectively.

Additional information regarding the Company’s real estate operating leases is as follows:

	Nine Months Ended September 30,
	2025			2024
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	939		$	797
Right-of-use assets included in other assets on the condensed consolidated balance sheet		4,823			1,981
Weighted average discount rate		7.9	%		6.8	%
Weighted average remaining lease term in years	7.0 years			2.1 years

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
Remainder of 2025	$	315
2026		1,113
2027		693
2028		673
2029		645
Thereafter		3,595
Total undiscounted lease payments		7,034
Less: present value adjustment		2,129
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	4,905

As of September 30, 2025, the Company has no operating leases that have not yet commenced.