NOTE 8 – LEASES

The Company has operating leases for bank locations, ATMs, corporate offices, and certain other arrangements, which have remaining lease terms of 1 year to 11 years. Some of the Company’s operating leases include options to extend the leases for up to 10 years.

Operating leases in which we are the lessee must be recorded as right-of-use assets with corresponding lease liabilities. The right-of-use asset represents our right to utilize the underlying asset during the lease term, while the lease liability represents the present value of the obligation of the Company to make periodic lease payments over the life of the lease. The associated operating lease costs are composed of the amortization of the right-of-use asset and the implicit interest accreted on the lease liability, which is recognized on a straight-line basis over the life of the lease. As of June 30, 2025, operating lease right-of-use assets were $10,561 and lease liabilities were $11,210, and as of December 31, 2024, operating lease right-of-use assets and lease liabilities were $11,635 and $12,300, respectively, and were included within the accompanying consolidated balance sheets as components of other assets and accrued interest and other liabilities, respectively.

Cash paid for operating leases was $1,229 and $1,154 for the six months ended June 30, 2025 and 2024, respectively. Operating lease expense for operating leases accounted for under ASC 842 for the six months ended June 30, 2025 and 2024 was approximately $1,215 and $1,168, respectively, and is included as a component of occupancy expenses within the accompanying consolidated statements of earnings.

As of June 30, 2025, the Company had no additional operating leases that had not yet commenced.