Operating Leases Operating Leases (Notes)

12 Months Ended

Dec. 31, 2025

Operating Leases

The Company leases real estate for four branch offices. The lease agreements have maturity dates ranging from September 2030 to September 2036, some of which include options to renew at the Company's discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the measurement of the right-of-use asset and lease liability. The weighted average remaining lives of the lease terms used in the measurement of the operating lease liability were 8.7 years and 9.6 years as of December 31, 2025 and 2024, respectively.

The discount rate used in determining the lease liability at lease commencement or extension is the FHLB fixed advance rate which corresponds with the remaining lease term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used. The weighted average discount rates used in the measurement of the operating lease liabilities were 4.07 percent and 4.06 percent as of December 31, 2025 and 2024, respectively.

Operating lease right-of-use assets are included in premises and equipment. Operating lease liabilities of $4,140 and $4,551 were included in other liabilities as of December 31, 2025 and 2024, respectively. Rent expense related to these leases was $573, $972 and $1,510, for the years ended December 31, 2025, 2024 and 2023, respectively.

Total estimated rental commitments for the operating leases were as follows as of December 31, 2025.


2026	$	593
2027	600
2028	610
2029	611
2030	579
Thereafter	1,964
Total lease payments	4,957
Less: present value discount	(817)
Present value of lease liabilities	$	4,140