The Company is obligated under a number of non-cancellable operating lease agreements for land, buildings and equipment with terms, including renewal options reasonably certain to be exercised, extending through 2061. There were no residual value guarantees, restrictions, or covenants imposed by leases.

The following table represents the consolidated statements of financial condition classification of the Company’s right of use assets and lease liabilities (in thousands):


		June 30,			December 31,
	Balance Sheet Location	2026			2025
Operating Lease Right of Use Assets:
Gross carrying amount	Other assets	$	41,542		$	40,329
Accumulated amortization	Other assets		(12,224	)		(11,263	)
Net book value		$	29,318		$	29,066

Operating Lease Liabilities:
Right of use lease obligations	Other liabilities	$	31,879		$	31,575

The weighted average remaining lease term for operating leases was 20.5 years at June 30, 2026 and the weighted-average discount rate used in the measurement of operating lease liabilities was 4.40%. The Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term for the discount rate.

The following table represents lease costs, primarily included in occupancy and equipment expenses on the consolidated statement of operations, and other cash flow information (in thousands):


	Three months ended June 30,					Six months ended June 30,
	2026		2025			2026			2025
Lease costs:
Operating lease costs	$	817	$	782		$	1,631		$	1,559
Variable lease costs (1)		116		98			244			221
Short-term lease cost		15		2			23			6
Sublease income		—		(35	)		(22	)		(69	)
Net lease costs	$	948	$	847		$	1,876		$	1,717

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	799	$	756		$	1,596		$	1,512
Right of use assets obtained in exchange for new operating lease liabilities	$	315	$	—		$	1,214		$	311

(1)

Variable lease costs primarily represent variable payments such as common area maintenance, insurance, taxes and utilities.

Future minimum payments under non-cancellable operating leases with initial or remaining terms of one year or more, are as follows at June 30, 2026 (in thousands):


Twelve months ended June 30,
2026	$	1,606
2027		3,144
2028		2,823
2029		2,524
2030		2,424
Thereafter		37,581
Total future minimum operating lease payments		50,102
Amounts representing interest		(18,223	)
Present value of net future minimum operating lease payments	$	31,879