Leases:

The Company has operating leases for branch office locations, vehicles, land and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.3 years, some of which had options to extend the lease for up to 15 years. The right of use assets and lease liabilities were $11.1 million and $11.4 million as of March 31, 2026, respectively, and $7.9 million and $8.2 million at December 31, 2025, respectively. The right of use assets are included in other assets while the lease liabilities are included in other liabilities on the balance sheet.

Lease expense for the three month periods ended March 31, 2026 and 2025 was $427,000 and $293,000, respectively. The weighted-average remaining lease term for all leases was 8.87 years as of March 31, 2026. The weighted-average discount rate was 3.75% for all leases as of March 31, 2026.

On March 2, 2026, the Company performed a valuation of Middlefield's leases to determine an initial right of use asset and lease liability in connection with the Merger. The Company recorded an initial right of use asset and lease liability of $3.5 million for these leases. 

Maturities of lease liabilities are as follows as of March 31, 2026: