Park is a lessee in several noncancellable operating lease arrangements, primarily for retail branches, administrative and warehouse buildings, ATMs, and certain office equipment within its Ohio, North Carolina, South Carolina, and Kentucky markets. Certain of these leases contain renewal options for periods ranging from one year to five years. Park’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease arrangements include fixed payments plus, for many of Park’s real estate leases, variable payments such as Park's proportionate share of property taxes, insurance and common area maintenance.

Park's operating lease ROU asset and lease liability are presented in “Operating lease ROU asset" and "Operating lease liability," respectively, on Park's Consolidated Condensed Balance Sheets. The carrying amounts of Park's ROU asset and lease liability at June 30, 2025 were $16.1 million and $17.5 million, respectively. At December 31, 2024, the carrying amounts of Park's ROU asset and lease liability were $15.7 million and $16.5 million, respectively. Park's operating lease expense is recorded in "Occupancy expense" on the Company's Consolidated Condensed Statements of Income.


	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Lease cost
Operating lease cost	$	657	$	618	$	1,297	$	1,240
Sublease income	—		—		—		(10)
Total lease cost	$	657	$	618	$	1,297	$	1,230

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	611	$	577	$	684	$	1,371
ROU assets obtained in exchange for new operating lease liabilities	$	303	$	1,903	$	1,372	$	2,450
Reductions to ROU assets resulting from reductions to lease obligations	$	(445)	$	(437)	$	(882)	$	(1,095)

(1) Includes a tenant improvement allowance of $524,000 related to the reimbursement of leasehold expenditures for the six-month period ended June 30, 2025.

Park's operating leases had a weighted average remaining term of 9.6 years and 9.8 years at June 30, 2025 and December 31, 2024, respectively. The weighted average discount rate of Park's operating leases was 4.0% and 3.8% at June 30, 2025 and at December 31, 2024, respectively.


(in thousands)	June 30, 2025
Six months ending December 31, 2025	$	1,278
2026	2,564
2027	2,466
2028	2,436
2029	2,452
Thereafter	10,411
Total undiscounted minimum lease payments	$	21,607
Present value adjustment	(4,088)
Total lease liabilities	$	17,519