v3.26.1
Leases
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
Note 6 Leases

Effective October 1, 2021, the Bank entered into an operating lease for its administrative offices at 4601 Wilshire Boulevard in Los Angeles. The operating lease has one 5-year extension option at the then fair market rate which was exercised during the year ended December 31, 2025.

The ROU asset represents our right to use the underlying asset during the lease term. Operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the date of the lease’s inception. The ROU asset totaled $1.5 million and $420 thousand as of December 31, 2025 and 2024, respectively,  and was included in other assets on the consolidated statements of financial condition. The lease liability totaled $1.5 million and $420 thousand as of December 31, 2025 and 2024, respectively, and was included in accrued expenses and other liabilities on the consolidated statements of financial condition.

The Bank has no finance leases.

The Company recognized rent expense of $242 thousand in both 2025 and 2024.

Additional information regarding our operating leases is summarized below for the periods indicated (dollars in thousands):

 
Year Ended
December 31, 2025
   
Year Ended
December 31, 2024
 
Cash paid for amounts included in the measurement of lease liabilities for operating leases
 
$
242
    $ 242  
ROU assets obtained in exchange for lease liabilities
 
1,310
     
Weighted average remaining lease term in months
   
73
      21  
Weighted average discount rate
    3.8 %     5.5 %

The future minimum payments for operating leases with remaining terms of one year or more as of December 31, 2025 were as follows (in thousands):

Year ended December 31, 2026
 
$
249
 
Year ended December 31, 2027
   
271
 
Year ended December 31, 2028
    271  
Year ended December 31, 2029
    271  
Year ended December 31, 2030
    271  
Thereafter
    293  
Total future minimum lease payments
   
1,626
 
Amounts representing interest
   
(135
)
Present value of net future minimum lease payments
 
$
1,491