v3.26.1
PREMISES, EQUIPMENT AND LEASES
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
PREMISES, EQUIPMENT AND LEASES PREMISES, EQUIPMENT AND LEASES
A summary of premises, equipment and leases at June 30, 2026 and December 31, 2025 is as follows:
June 30,December 31,
(dollars in thousands)20262025
Land$15,856 $15,856 
Buildings and improvements87,047 86,429 
Furniture and equipment38,534 38,303 
Lease right-of-use assets7,425 8,117 
Total148,862 148,705 
Accumulated depreciation(65,964)(63,571)
Premises and equipment, net$82,898 $85,134 
Depreciation expense for the three and six months ended June 30, 2026 was $1.2 million and $2.4 million, respectively, and $1.2 million and $2.5 million for the three and six months ended June 30, 2025, respectively.
The Company has entered into operating leases, primarily for banking offices, operating facilities and ATMs, which have remaining lease terms of 2 months to 12 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included in the remaining lease term if they are reasonably certain to be exercised. The Company had operating lease right-of-use assets of $7.4 million and $8.1 million as of June 30, 2026 and December 31, 2025, respectively, included in premises and equipment, net on our consolidated balance sheets. The operating lease liabilities of the Company were $8.6 million and $9.3 million as of June 30, 2026 and December 31, 2025, respectively, and are included in accrued interest payable and other liabilities on our consolidated balance sheets.
Information related to operating leases for the three and six months ended June 30, 2026 and 2025 was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Operating lease cost$507 $480 $988 $978 
Operating cash flows from leases538 485 1,041 1,003 
Right-of-use assets obtained in exchange for lease obligations92 — 128 837 
Weighted average remaining lease term5.7 years6.5 years5.7 years6.5 years
Weighted average discount rate3.72 %3.72 %3.72 %3.72 %
The projected minimum rental payments under the terms of the leases as of June 30, 2026 were as follows:
(dollars in thousands)Amount
Year ending December 31:
2026 remaining$903 
20271,929 
20281,855 
20291,655 
20301,073 
Thereafter2,190 
Total future minimum lease payments9,605 
Less imputed interest(979)
Total operating lease liabilities$8,626