Leases

6 Months Ended

Jun. 30, 2025

Note 8 – Leases

Leases ASC (Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 30 operating lease agreements for 28 branches and its corporate offices with terms extending through 2042. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.

The following table represents the classification of the Company’s right of use and lease liability.


	Statement of Financial		Six Months Ended			Year Ended
	Condition Location		June 30, 2025			December 31, 2024
			(In thousands)
Operating Lease Right of Use Asset:
Gross carrying amount beginning of year			$	21,903		$	23,398
Increased asset from new leases				—			3,066
Accumulated amortization				(1,465	)		(4,561	)

Net book value		Operating lease right-of-use asset	$	20,438		$	21,903

Operating Lease Liability:

Lease liability		Operating lease liability	$	21,501		$	22,941

As of June 30, 2025, the weighted-average remaining lease terms for operating leases was 10.5 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.56%. The Company used Federal Home Loan Bank (“FHLB”) fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.

Future minimum payments under operating leases with terms longer than 12 months are as follows at June 30, 2025 (in thousands):


	Amount
	(In thousands)
Twelve months ended March 31,
2026	$	3,712
2027		3,466
2028		3,227
2028		2,888
2030		2,543
Thereafter		13,309

Total future operating lease payment		29,145
Amounts representing interest		(7,644	)

Present value of net future lease payments	$	21,501


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(In thousands)				(In thousands)
Lease cost:
Operating lease	$	1,015	$	976	$	2,040	$	1,962
Short-term lease cost		10		17		77		65

Total lease cost	$	1,025	$	993	$	2,117	$	2,027

Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	947	$	871	$	1,887	$	1,751