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Leases
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
September 30, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$7,949 $8,072 
Lease liabilities$9,434 $9,557 
Weighted-average remaining lease terms (years)7.78.2
Weighted-average discount rate3.63 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2025:
Remainder of 2025$470 
20261,900 
20271,925 
20281,738 
2029970 
Thereafter3,906 
Total undiscounted minimum lease payments10,909 
Less: amount representing interest(1,475)
Total lease liability$9,434 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease cost (included in occupancy expense, net)$399 $407 $1,192 $1,221 
Variable lease cost (included in occupancy expense, net)— 1 2 4 
Sublease income (included in other noninterest income)(47)(43)(136)(128)
Total operating lease expense, net$352 $365 $1,058 $1,097 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Nine Months Ended September 30,
2025
2024
ROU assets - noncash additions$776 $— 
Cash paid for amounts included in the measurement of lease liabilities1,143 1,140 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $27,248 and $31,572 with a residual value of $13,418 and $13,662 as of September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at September 30, 2025:
Remainder of 2025$1,952 
20266,612 
20273,557 
20283,199 
20292,704 
Thereafter1,363 
Total of future minimum payments$19,387 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $1,377 and $1,181, respectively. For the nine months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $3,879 and $3,348, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $78,167 and $70,420 at September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of September 30, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$8,082 
202626,553 
202722,338 
202815,851 
202910,103 
Thereafter7,910 
Total undiscounted minimum lease payments90,837 
Less: amount representing interest(12,670)
Total lease receivable$78,167 
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
September 30, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$7,949 $8,072 
Lease liabilities$9,434 $9,557 
Weighted-average remaining lease terms (years)7.78.2
Weighted-average discount rate3.63 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2025:
Remainder of 2025$470 
20261,900 
20271,925 
20281,738 
2029970 
Thereafter3,906 
Total undiscounted minimum lease payments10,909 
Less: amount representing interest(1,475)
Total lease liability$9,434 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease cost (included in occupancy expense, net)$399 $407 $1,192 $1,221 
Variable lease cost (included in occupancy expense, net)— 1 2 4 
Sublease income (included in other noninterest income)(47)(43)(136)(128)
Total operating lease expense, net$352 $365 $1,058 $1,097 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Nine Months Ended September 30,
2025
2024
ROU assets - noncash additions$776 $— 
Cash paid for amounts included in the measurement of lease liabilities1,143 1,140 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $27,248 and $31,572 with a residual value of $13,418 and $13,662 as of September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at September 30, 2025:
Remainder of 2025$1,952 
20266,612 
20273,557 
20283,199 
20292,704 
Thereafter1,363 
Total of future minimum payments$19,387 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $1,377 and $1,181, respectively. For the nine months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $3,879 and $3,348, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $78,167 and $70,420 at September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of September 30, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$8,082 
202626,553 
202722,338 
202815,851 
202910,103 
Thereafter7,910 
Total undiscounted minimum lease payments90,837 
Less: amount representing interest(12,670)
Total lease receivable$78,167 
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
September 30, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$7,949 $8,072 
Lease liabilities$9,434 $9,557 
Weighted-average remaining lease terms (years)7.78.2
Weighted-average discount rate3.63 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2025:
Remainder of 2025$470 
20261,900 
20271,925 
20281,738 
2029970 
Thereafter3,906 
Total undiscounted minimum lease payments10,909 
Less: amount representing interest(1,475)
Total lease liability$9,434 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease cost (included in occupancy expense, net)$399 $407 $1,192 $1,221 
Variable lease cost (included in occupancy expense, net)— 1 2 4 
Sublease income (included in other noninterest income)(47)(43)(136)(128)
Total operating lease expense, net$352 $365 $1,058 $1,097 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Nine Months Ended September 30,
2025
2024
ROU assets - noncash additions$776 $— 
Cash paid for amounts included in the measurement of lease liabilities1,143 1,140 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $27,248 and $31,572 with a residual value of $13,418 and $13,662 as of September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at September 30, 2025:
Remainder of 2025$1,952 
20266,612 
20273,557 
20283,199 
20292,704 
Thereafter1,363 
Total of future minimum payments$19,387 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $1,377 and $1,181, respectively. For the nine months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $3,879 and $3,348, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $78,167 and $70,420 at September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of September 30, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$8,082 
202626,553 
202722,338 
202815,851 
202910,103 
Thereafter7,910 
Total undiscounted minimum lease payments90,837 
Less: amount representing interest(12,670)
Total lease receivable$78,167 
Leases Leases
As Lessee - Operating Leases
The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheet. The Company recognizes lease expenses for these leases over the lease term.
The following tables present supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.
September 30, 2025December 31, 2024
Supplemental balance sheet information
ROU assets$7,949 $8,072 
Lease liabilities$9,434 $9,557 
Weighted-average remaining lease terms (years)7.78.2
Weighted-average discount rate3.63 %3.48 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2025:
Remainder of 2025$470 
20261,900 
20271,925 
20281,738 
2029970 
Thereafter3,906 
Total undiscounted minimum lease payments10,909 
Less: amount representing interest(1,475)
Total lease liability$9,434 
The following table presents components of operating lease expense for the periods indicated:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Operating lease cost (included in occupancy expense, net)$399 $407 $1,192 $1,221 
Variable lease cost (included in occupancy expense, net)— 1 2 4 
Sublease income (included in other noninterest income)(47)(43)(136)(128)
Total operating lease expense, net$352 $365 $1,058 $1,097 
The following table presents supplemental operating lease cash flow information for the periods indicated:
Nine Months Ended September 30,
2025
2024
ROU assets - noncash additions$776 $— 
Cash paid for amounts included in the measurement of lease liabilities1,143 1,140 
As Lessor - General
The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of construction, transportation, healthcare and manufacturing equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a fixed purchase option, and most of the leases that do not have a purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.
As Lessor - Operating Leases
Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from one to seven years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $27,248 and $31,572 with a residual value of $13,418 and $13,662 as of September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes aggregate future minimum lease payments to be received at September 30, 2025:
Remainder of 2025$1,952 
20266,612 
20273,557 
20283,199 
20292,704 
Thereafter1,363 
Total of future minimum payments$19,387 
As Lessor - Financing Leases
Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment of the loan portfolio. For the three months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $1,377 and $1,181, respectively. For the nine months ended September 30, 2025 and 2024, interest income on equipment finance leases totaled $3,879 and $3,348, respectively.
The lease receivable component of finance lease net investment included within the equipment finance class of financing receivables was $78,167 and $70,420 at September 30, 2025 and December 31, 2024, respectively.
The following schedule summarizes, as of September 30, 2025, aggregate future minimum finance lease payments to be received:
Remainder of 2025$8,082 
202626,553 
202722,338 
202815,851 
202910,103 
Thereafter7,910 
Total undiscounted minimum lease payments90,837 
Less: amount representing interest(12,670)
Total lease receivable$78,167