Park is a lessee in several noncancellable operating lease arrangements, primarily for retail branches, administrative and warehouse buildings, ATMs, and certain office equipment within its Ohio, North Carolina, South Carolina, Kentucky, and Tennessee markets. Certain of these leases contain renewal options for periods ranging from one year to five years. Park’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease arrangements include fixed payments plus, for many of Park’s real estate leases, variable payments such as Park's proportionate share of property taxes, insurance and common area maintenance.

Park's operating lease ROU asset and lease liability are presented in “Operating lease ROU asset" and "Operating lease liability," respectively, on Park's Consolidated Condensed Balance Sheets. The carrying amounts of Park's ROU asset and lease liability at March 31, 2026 were $17.4 million and $18.9 million, respectively. At December 31, 2025, the carrying amounts of Park's ROU asset and lease liability were $15.7 million and $17.1 million, respectively. Park's operating lease expense is recorded in "Occupancy expense" on the Company's Consolidated Condensed Statements of Income.


	Three Months Ended
(in thousands)	March 31, 2026		March 31, 2025
Lease cost
Operating lease cost	$	755	$	640
Sublease income	—		—
Total lease cost	$	755	$	640

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	737	$	73
Acquired ROU assets and operating lease liabilities	2,041		—
ROU assets obtained in exchange for new operating lease liabilities	49		1,069
Reductions to ROU assets resulting from reductions to lease obligations	$	(547)	$	(437)

(1) Includes a tenant improvement allowance of $524,000 related to the reimbursement of leasehold expenditures for the three-month period ended March 31, 2025.

Park's operating leases had a weighted average remaining term of 8.7 years and 9.3 years at March 31, 2026 and December 31, 2025, respectively. The weighted average discount rate of Park's operating leases was 4.3% and 4.4% at March 31, 2026 and at December 31, 2025, respectively.


(in thousands)	March 31, 2026
Nine months ending December 31, 2026	$	2,367
2027	3,088
2028	3,019
2029	3,019
2030	1,966
Thereafter	9,532
Total undiscounted minimum lease payments	$	22,991
Present value adjustment	(4,114)
Total lease liabilities	$	18,877