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Leases
3 Months Ended
Mar. 31, 2026
Leases  
Leases

Note 11 — Leases

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The Company leases certain buildings, land and equipment that are classified as operating leases. These leases have remaining lease terms of up to approximately 15 years. Operating lease cost totaled $367 and $359 in the first quarter of 2026 and 2025, respectively. Cash paid for operating lease liabilities totaled $358 and $346 in the first quarter of 2026 and 2025. As of March 31, 2026 and 2025, operating lease right-of-use assets were $4,754 and $5,791, respectively, and operating lease liabilities were $5,128 and $6,127, respectively. The weighted-average remaining lease term related to these operating leases was 11.5 years and 11.0 years as of March 31, 2026 and 2025, respectively. The weighted-average discount rate related to the Company’s operating leases was 3.6% and 3.6% as of March 31, 2026 and 2025, respectively. Maturities of the Company’s operating lease liabilities at March 31, 2026 are as follows: $728 in 2026 (rest of year), $703 in 2027, $315 in 2028, $118 in 2029, $123 in 2030 and $3,141 thereafter.

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The Company, as lessor, rents certain commercial real estate to third-party lessees. The March 31, 2026 and 2025 cost related to these leased properties was $51,228 and $51,228, respectively, and the accumulated depreciation related to these leased properties was $20,461 and $19,530, respectively. Terms of such leases, including renewal options, may be extended for up to fifty-four years, many of which provide for periodic adjustment of rent payments based on changes in consumer or other price indices. The Company recognizes lease income on a straight-line basis over the lease term. Lease income in first quarter 2026 and 2025 was $1,836 and $1,787, respectively, and is classified in cash flows from operating activities.

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