The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. As of March 31, 2026, the Company has operating lease ROU assets of $11.7 million and operating lease liabilities of $11.9 million. As of December 31, 2025, the Company had operating lease ROU assets of $5.9 million and operating lease liabilities of $5.9 million. The Company did not have any agreements that are classified as finance leases as of March 31, 2026 or December 31, 2025.

The Company entered into a new seven year lease for the headquarters building for Residential Mortgage in the first quarter of 2026. Upon commencement, the operating lease ROU assets increased $6.3 million and the operating lease liabilities increased $6.4 million.


		Three Months Ended March 31,
(In Thousands)			2026		2025
Lease Cost
	Operating lease cost(1)		$721		$708
	Short term lease cost(1)		70		86
	Total lease cost		$791		$794

Other information
	Operating leases - operating cash flows		$574		$687
	Weighted average lease term - operating leases, in years		10.16		11.35
	Weighted average discount rate - operating leases		3.89	%	3.75	%
(1)	Expenses are classified within occupancy expense on the Consolidated Statements of Income.

The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented (unless otherwise indicated) and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:


(In Thousands)			Operating Leases
2026 (Nine months)			$1,605
2027			2,087
2028			1,849
2029			1,705
2030			1,378
Thereafter			5,834
Total minimum lease payments			$14,458
Less: amount of lease payment representing interest			(2,601)
Present value of future minimum lease payments			$11,857