The Bank leases branch offices, parking facilities and certain equipment under operating leases. The leases have remaining lease terms of 1 year to 8 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 4 years. As the options are reasonably certain to be exercised, they are recognized as part of the right-of-use assets and lease liabilities.

For the three months ended March 31, 2026 and 2025 total operating lease expense was $120 thousand and $120 thousand, respectively, and is included in occupancy expenses in the consolidated statement of income. Included in this were $116 thousand and $100 thousand of operating lease costs, respectively, $2 thousand and $10 thousand, of short term lease costs, respectively, and $2 thousand and $10 thousand of variable lease costs, respectively.

For the three months ended March 31, 2026 and 2025, cash paid for amounts included in the measurement of operating lease liabilities was $116 thousand and $100 thousand, respectively, and no right-of-use assets were obtained in exchange for lease obligations.

As of March 31, 2026 and December 31, 2025, operating lease right-of-use assets included in other assets were $1.54 million and $1.60 million respectively. Operating lease liabilities included in other liabilities were $1.64 million and $1.71 million, respectively. The weighted average remaining lease term for operating leases was 6.83 years and 7.00 years, respectively, and the weighted average discount rate for operating leases was 3.02% and 3.68%, respectively. Discount rates used were determined from FHLB borrowing rates for comparable terms.


Year ending December 31:	(Amounts In Thousands)
2026 (excluding the three months ended March 31, 2026)	$	252
2027	333
2028	295
2029	172
2030	174
Thereafter	638
Total lease payments	1,864
Less imputed interest	(222)
Total operating lease liabilities	$	1,642