The Company is party to operating lease agreements, which are recorded as operating lease right-of-use (“ROU”) assets and operating lease liabilities. Lease payments during the three months ended March 31, 2026 and March 31, 2025 were $2.4 million and $2.3 million, respectively.

ROU assets represent the Company’s right to use an underlying asset during the lease term and the operating lease liabilities represent the Company’s obligations for lease payments in accordance with the lease. Recognition of ROU assets and liabilities are recognized at the lease commitment date based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commitment date or the ASC Topic 842, Leases, adoption date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in Occupancy Expense in the Condensed Consolidated Statements of Income.

Remaining lease terms range from 1 to 10 years and typically include extension options. The Company’s leases are not complex and do not contain residual value guarantees, variable lease payments, or significant assumptions or judgments. Operating leases with a term of 12 months or less are not recorded on the statement of financial condition and the related lease expense is recognized on a straight-line basis over the lease term.

Operating lease ROU assets and operating lease liabilities were $41.0 million and $42.5 million at March 31, 2026, respectively, and $40.1 million and $41.4 million at March 31, 2025, respectively. At December 31, 2025 the operating lease ROU assets and operating liabilities were $40.3 million and $41.7 million, respectively.

The Company’s lease maturities as of March 31, 2026 and March 31, 2025 are presented in the tables that follow. The tables below summarize lease expense and other information related to the Company’s operating leases with respect to ASC Topic 842 (dollars in thousands):


	Three Months Ended March 31, 2026

Operating lease expense	$	2,439
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,427
Weighted-average remaining lease term – operating leases	6.82 years
Weighted-average discount rate – operating leases	6.42		%

Maturity analysis of lease liabilities:	Amount
Remainder of 2026	$	7,209
2027	8,828
2028	7,933
2029	6,579
2030	5,690
2031 and beyond	16,401
Total	52,640
Less: Discount	(10,129)
Present Value of Lease Liability	$	42,511


	Three Months Ended March 31, 2025

Operating lease expense	$	2,333
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,326
Weighted-average remaining lease term – operating leases	6.56 years
Weighted-average discount rate – operating leases	6.01		%

Maturity analysis of lease liabilities:	Amount
Remainder of 2025	$	7,041
2026	8,716
2027	7,815
2028	6,908
2029	5,498
2030 and beyond	14,214
Total	50,192
Less: Discount	(8,841)
Present Value of Lease Liability	$	41,351