The Company maintains certain property and equipment under direct financing and operating leases. As of March 31, 2026, the Company's operating lease ROU asset and operating lease liability totaled $38.1 million and $41.5 million, respectively. As of December 31, 2025, the Company's operating lease ROU asset and operating lease liability totaled $39.9 million and $43.3 million,

respectively. Weighted average discount rates of 4.46 percent and 4.44 percent were used in the measurement of the ROU asset and lease liability at March 31, 2026 and December 31, 2025, respectively.

The Company's leases have remaining lease terms between three months to 11 years, with a weighted average lease term of 8.33 years at March 31, 2026. The Company's leases had remaining lease terms between six months to 11 years, with a weighted average lease term of 8.47 years at December 31, 2025. 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 $1.7 million for both of the three month periods ended March 31, 2026 and 2025. The variable lease costs were $131,000 and $119,000 for the three months ended March 31, 2026 and 2025, respectively.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of March 31, 2026:


(In thousands)
2026		5,029
2027		6,314
2028		5,946
2029		5,642
2030		5,718
Thereafter		21,298
Total lease payments		49,947
Less: imputed interest		8,489
Total present value of lease payments	$	41,458

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 Three Months Ended March 31,
(In thousands)	2026		2025
Right-of-use asset obtained in exchange for lease obligation	$	—	$	365
Operating cash flows from operating leases		1,699		1,447
Operating cash flows from direct finance leases		12		14
Financing cash flows from direct finance leases		35		35