The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. As of June 30, 2026, the Company has operating lease ROU assets of $11.3 million and operating lease liabilities of $11.5 million. As of December 31, 2025, the Company had operating lease ROU assets of $5.9 million and operating lease liabilities of $5.9 million. The Company did not have any agreements that are classified as finance leases as of June 30, 2026 or December 31, 2025.

The Company entered into a new seven year lease for the headquarters building for Residential Mortgage, LLC (“RML”) in the first quarter of 2026. Upon commencement, the operating lease ROU assets increased $6.3 million and the operating lease liabilities increased $6.4 million.


		Three Months Ended June 30,		Six Months Ended June 30,
(In Thousands)		2026	2025	2026		2025
Lease Cost
	Operating lease cost(1)	$615	$761	$1,337		$1,469
	Short term lease cost(1)	73	78	143		164
	Total lease cost	$688	$839	$1,480		$1,633

Other information
	Operating leases - operating cash flows			$1,103		$1,371
	Weighted average lease term - operating leases, in years			10.11		11.88
	Weighted average discount rate - operating leases			3.89	%	3.78	%
(1)	Expenses are classified within occupancy expense on the Consolidated Statements of Income.

The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented (unless otherwise indicated) and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:


(In Thousands)			Operating Leases
2026 (Six months)			$1,152
2027			2,113
2028			1,878
2029			1,717
2030			1,378
Thereafter			5,834
Total minimum lease payments			$14,072
Less: amount of lease payment representing interest			(2,613)
Present value of future minimum lease payments			$11,459