The Company has operating leases for branch office locations, vehicles and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.6 years, some of which include options to extend the lease for up to 15 years, while other leases have the option to terminate in March of 2025. The Beachwood branch lease located at 24755 Chagrin Blvd. was terminated effective January, 31 2025, and the Branch was moved into a new location at 22835 Chagrin Blvd on February 3, 2025. This new lease location was effective in December of 2024, with an initial right of use asset and lease liability recorded of $971 thousand.

The right of use asset and lease liability were $9.7 million and $9.9 million as of December 31, 2024, respectively, and $8.8 million and $9.0 million as of December 31, 2023, respectively. The right of use asset is included in other assets and the lease liability is included in other liabilities on the balance sheet.

Lease expense for the years ended December 31, 2024, 2023 and 2022 was $1.4 million, $1.2 million and $1.0 million, respectively. The weighted-average remaining lease term for all leases was 9.97 and 10.97 years as of December 31, 2024 and 2023. The weighted-average discount rate was 3.33% and 2.99% for all leases as of December 31, 2024 and 2023.

On January 1, 2023, the Company performed a valuation of Emclaire’s leases to determine an initial right of use asset (ROU asset) and lease liability in connection with the Merger. The Company recorded and initial ROU asset and lease liability of $1.3 million for these leases.

Maturities of lease liabilities are as follows as of December 31, 2024:


2025	$	1,393
2026		1,279
2027		1,198
2028		1,214
2029		1,110
Thereafter		5,652
Total Payments		11,846
Less: Imputed Interest		(1,904	)
Total	$	9,942