The Company’s leases primarily relate to real estate property for branches and office space with terms extending from two months up to 28.8 years. At March 31, 2026, all of the Company’s leases are classified as operating leases, which are required to be recognized on the consolidated balance sheets as a right-of-use asset and a corresponding lease liability.

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheets. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recorded at the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate, at lease inception, over a similar term in determining the present value of lease payments. Certain leases include options to renew, with one or more renewal terms ranging from five to ten years. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the right-of-use asset and lease liability.

At March 31, 2026, the Company’s operating lease right-of-use assets and operating lease liabilities included on the consolidated balance sheet were $24.6 million and $28.3 million, respectively. At December 31, 2025, the Company’s operating lease right-of-use assets and operating lease liabilities included on the consolidated balance sheet were $25.8 million and $29.6 million, respectively. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense on the consolidated statements of comprehensive income.


	Three Months Ended March 31,
		2026			2025

Operating lease cost		$	1,467		$	1,462
Variable lease cost		1,045			1,200

Net lease cost		$	2,512		$	2,662
Cash paid for amounts included in measurement of operating lease liabilities		$	1,559		$	1,614
Right-of-use assets obtained in exchange for new operating lease liabilities		$	—		$	753
Weighted average remaining lease term (in years)		10.64 years			10.69 years
Weighted average discount rate		3.77		%	3.69		%