Leases (ASC Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 31 operating lease agreements for 29 branches and its corporate offices with terms extending through 2042. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.

The following table represents the classification of the Company’s right of use asset and lease liability.


	Statement of Financial	Three Months Ended			Year Ended
	Condition Location	March 31, 2026			December 31, 2025
		(In thousands)
Operating Lease Right of Use Asset:
Gross carrying amount beginning of year		$	20,121		$	21,903
Increased asset from new leases			860			1,165
Accumulated amortization			(753	)		(2,947	)
Net book value	Operating lease right-of-use asset	$	20,228		$	20,121
Operating Lease Liability:
Lease liability	Operating lease liability	$	21,298		$	21,194

As of March 31, 2026, the weighted-average remaining lease terms for operating leases was 9.9 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.54%. The Company used Federal Home Loan Bank (“FHLB”) fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.

Future minimum payments under operating leases with terms longer than 12 months are as follows at March 31, 2026 (in thousands):


	Amount
	(In thousands)
Twelve months ended March 31,
2026	$	3,817
2027		3,554
2028		3,359
2029		2,860
2030		2,572
Thereafter		11,607
Total future operating lease payment		27,769
Amounts representing interest		(6,471	)
Present value of net future lease payments	$	21,298


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Lease cost:
Operating lease	$	1,040	$	1,025
Short-term lease cost		38		66
Total lease cost	$	1,078	$	1,091
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	964	$	940