| | | 19. LEASE COMMITMENTS AND CONTINGENCIES | |
The Company’s operating leases are primarily comprised of corporate office leases with remaining lease terms of approximately two years and sixteen years. The corporate office leases include options to extend for up to five years, however the extension terms were not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the three and six months ended June 30, 2026 was $0.9 million and $1.8 million, respectively. The lease cost for the three and six months ended June 30, 2025 was $1.5 million and $2.7 million, respectively.
Supplemental information related to leases as of and for the six months ended June 30, 2026 was as follows: | | | | | | | | | | Operating Leases | Classification | June 30, 2026 | | | Assets | (dollars in thousands) | | Operating lease right-of-use assets | Other assets | $ | 25,975 | | | | | | Liabilities | Operating lease liabilities (1) | Other liabilities | $ | 34,222 | | | | | | Lease term and discount rate | | Weighted average remaining lease term | | 15.7 years | | | | Weighted average discount rate (1) | | 7.0% | | | | | | Cash paid for amounts included in the measurement of lease liabilities | | Operating cash flows from operating leases | | $ | 130 | | (1) For the Company’s leases that do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments. | |
The following table provides details related to maturities of lease liabilities: | | | | | | | Maturity of Lease Liabilities | | Years ending December 31, | (dollars in thousands) | | 2026 (remaining) | $ | 131 | | | 2027 | 2,503 | | | 2028 | 3,854 | | | 2029 | 3,831 | | | 2030 | 3,831 | | | | | Later years | 48,210 | | | Total lease payments | $ | 62,360 | | | Less: imputed interest | 28,138 | | | Present value of lease liabilities | $ | 34,222 | | |
Contingencies From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements. There were no material contingencies at June 30, 2026 and December 31, 2025.
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