Leases

3 Months Ended

Mar. 31, 2026

7. Leases

The Company has 33 operating leases for branches (including headquarters) and office spaces, and one operating lease for equipment. Our leases have remaining lease terms ranging from seven months to approximately 11 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of the lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has one agreement in 2026 and three agreements in 2025 that qualified as short-term leases, respectively.

Certain leases have escalation clauses for operating expenses and real estate taxes, which are recorded as variable lease cost. The Company’s non-cancelable operating lease agreements expire through 2036.

Supplemental balance sheet information related to leases are as follows:




(Dollars in thousands)	March 31, 2026		December 31, 2025

Operating lease ROU assets	$	51,016	$	53,118

Operating lease liabilities	$	51,916	$	53,842

Weighted-average remaining lease term-operating leases		7.1 years		7.2 years
Weighted average discount rate-operating leases		4.4%		4.4%

The components of lease expense and cash flow information related to leases were as follows:


		For the three months ended March 31,
(In thousands)	Line Item Presented	2026		2025
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,613	$	2,319
Operating lease cost	Other operating expenses		—		5
Short-term lease cost	Professional services and other operating expenses		44		43
Variable lease cost	Occupancy and equipment		313		325
Total lease cost		$	2,970	$	2,692

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	2,450	$	2,511
Supplemental disclosure of non-cash activities:
Right-of-use assets obtained in exchange for new operating lease liabilities		$	—	$	—

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of March 31, 2026:


	Minimum Rental
	(In thousands)
Years ended December 31:
Remainder of 2026	$	6,721
2027		10,023
2028		9,895
2029		8,699
2030		5,327
Thereafter		20,538
Total minimum payments required		61,203
Less: implied interest		(9,287)
Total lease obligations	$	51,916