The Company maintains certain property and equipment under direct financing and operating leases. As of June 30, 2025, the Company's operating lease ROU asset and operating lease liability totaled $38.3 million and $41.8 million, respectively. As of December 31, 2024, the Company's operating lease ROU asset and operating lease liability totaled $40.3 million and $43.6 million, respectively. Weighted average discount rates of 4.42 percent and 4.40 percent were used in the measurement of the ROU asset and lease liability at June 30, 2025 and December 31, 2024, respectively.

The Company's leases have remaining lease terms between two months to 12 years, with a weighted average lease term of 8.85 years at June 30, 2025. The Company's leases had remaining lease terms between four months to 12 years, with a weighted average lease term of 9.28 years at December 31, 2024. The Company’s lease agreements may include options to extend or terminate the lease. The Company’s decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal.

Total operating lease costs were $1.6 million and $1.4 million for the three months ended June 30, 2025 and 2024, respectively. The variable lease costs were $123,000 and $93,000 for the three months ended June 30, 2025 and 2024, respectively.

Total operating lease costs were $3.3 million and $2.3 million for the six months ended June 30, 2025 and 2024, respectively. The variable lease costs were $242,000 and $159,000 for the six months ended June 30, 2025 and 2024, respectively.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of June 30, 2025:


(In thousands)
2025		3,299
2026		6,340
2027		5,807
2028		5,611
2029		5,283
Thereafter		24,497
Total lease payments		50,837
Less: imputed interest		9,031
Total present value of lease payments	$	41,806

The following table shows the supplemental cash flow information related to the Company’s direct finance and operating leases for the periods indicated:


	For the Six Months Ended June 30,
(In thousands)	2025		2024
Right-of-use asset obtained in exchange for lease obligation	$	365	$	28,321
Operating cash flows from operating leases		3,045		1,887
Operating cash flows from direct finance leases		27		60
Financing cash flows from direct finance leases		70		273