Note 8 - Leases

6 Months Ended

Jun. 30, 2026

Lessee, Operating and Finance Leases [Text Block]

NOTE 8 Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of an identified property, plant or equipment for a period of time in exchange for consideration. Substantially all of the leases in which the Company is the lessee are comprised of real property for offices and office equipment rentals with terms extending through 2045. Substantially all of the Company’s leases are classified as operating leases. The Company has no existing finance leases.

The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less) or equipment leases (deemed immaterial) on the consolidated financial statements. The following table presents the classification of the Company’s right-of-use (“ROU”) assets and lease liabilities on the consolidated financial statements as of June 30, 2026 and December 31, 2025:

		*June 30,*		*December 31,*
(dollars in thousands)		*2026*		*2025*
Lease Right-of-Use Assets	*Classification*
Operating lease right-of-use assets	Operating lease right-of-use assets	$	32,105	$	28,761
Lease Liabilities
Operating lease liabilities	Operating lease liabilities	$	42,752	$	36,282

The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term for the discount rate.

	*June 30,*			*December 31,*
	*2026*			*2025*
Weighted-average remaining lease term, years
Operating leases		15.8			16.9
Weighted-average discount rate
Operating leases		5.0	%		5.1	%

As the Company elected, for all classes of underlying assets, not to separate lease and non‑lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Variable lease cost also includes payments for usage or maintenance of those capitalized equipment operating leases.

The following table presents lease costs and other lease information for the three and six months ended June 30, 2026 and 2025:

	*Three months ended*						*Six months ended*
	*June 30,*						*June 30,*
(dollars in thousands)	*2026*			*2025*			*2026*			*2025*
Lease costs
Operating lease cost	$	875		$	621		$	1,575		$	1,240
Variable lease cost		306			184			497			126
Short-term lease cost		36			44			147			334
Sublease income		(19	)		(80	)		(36	)		(121	)
Net lease cost	$	1,198		$	769		$	2,183		$	1,579
Other information
Cash paid for amounts included in the measurement of lease liabilities operating cash flows from operating leases	$	875		$	599		$	1,574		$	1,197
Right-of-use assets obtained in exchange for new operating lease liabilities		543			44			5,282			66

Future minimum payments for finance and operating leases with initial or remaining terms of one year or more as of June 30, 2026 were as follows:

	*Operating*
(dollars in thousands)	*Leases*
Twelve months ended
June 30, 2027	$	3,813
June 30, 2028		3,748
June 30, 2029		3,968
June 30, 2030		4,014
June 30, 2031		4,119
Thereafter		46,439
Total future minimum lease payments	$	66,101
Amounts representing interest		(23,349	)
Total operating lease liabilities	$	42,752