Leases

9 Months Ended

Sep. 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	Nine Months Ended			Year Ended
	Condition Location	September 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			452			3,066
Accumulated amortization			(2,203	)		(4,561	)
Net book value	Operating lease right-of-use asset	$	20,152		$	21,903
Operating Lease Liability:
Lease liability	Operating lease liability	$	21,221		$	22,941

As of September 30, 2025, the weighted-average remaining lease terms for operating leases was 10.4 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.57%. 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 September 30, 2025 (in thousands):


	Amount
	(In thousands)
Twelve months ended September 30,
2026	$	3,661
2027		3,395
2028		3,206
2028		2,719
2030		2,507
Thereafter		12,708
Total future operating lease payment		28,196
Amounts representing interest		(6,975	)
Present value of net future lease payments	$	21,221


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In thousands)				(In thousands)
Lease cost:
Operating lease	$	1,009	$	1,030	$	3,049	$	2,992
Short-term lease cost		24		27		101		92
Total lease cost	$	1,033	$	1,057	$	3,150	$	3,085
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	949	$	890	$	2,836	$	2,641