v3.26.1
Leases
3 Months Ended
Mar. 31, 2026
Leases  
Leases

Note 11 — Leases

The Company leases certain buildings, land and equipment that are classified as operating leases. These leases have remaining lease terms of up to approximately 15 years. Operating lease cost totaled $367 and $359 in the first quarter of 2026 and 2025, respectively. Cash paid for operating lease liabilities totaled $358 and $346 in the first quarter of 2026 and 2025. As of March 31, 2026 and 2025, operating lease right-of-use assets were $4,754 and $5,791, respectively, and operating lease liabilities were $5,128 and $6,127, respectively. The weighted-average remaining lease term related to these operating leases was 11.5 years and 11.0 years as of March 31, 2026 and 2025, respectively. The weighted-average discount rate related to the Company’s operating leases was 3.6% and 3.6% as of March 31, 2026 and 2025, respectively. Maturities of the Company’s operating lease liabilities at March 31, 2026 are as follows: $728 in 2026 (rest of year), $703 in 2027, $315 in 2028, $118 in 2029, $123 in 2030 and $3,141 thereafter.

The Company, as lessor, rents certain commercial real estate to third-party lessees. The March 31, 2026 and 2025 cost related to these leased properties was $51,228 and $51,228, respectively, and the accumulated depreciation related to these leased properties was $20,461 and $19,530, respectively. Terms of such leases, including renewal options, may be extended for up to fifty-four years, many of which provide for periodic adjustment of rent payments based on changes in consumer or other price indices. The Company recognizes lease income on a straight-line basis over the lease term. Lease income in first quarter 2026 and 2025 was $1,836 and $1,787, respectively, and is classified in cash flows from operating activities.