The Company as a lessee has operating leases primarily consisting of real estate arrangements where the Company operates its headquarters, branches and business production offices. All leases identified as in scope are accounted for as operating leases as of June 30, 2026 and December 31, 2025. These leases are typically long-term leases and generally are not complicated arrangements or structures. Several of the leases contain renewal options at a rate comparable to the fair market value based on comparable analysis to similar properties in the Bank’s geographies.

Real estate operating leases are presented as a right-of-use (“ROU”) asset and a related operating lease liability on the Consolidated Statements of Financial Condition. The ROU asset represents the Company’s right to use the underlying asset for the lease term and the operating lease liabilities represent the obligation to make lease payments arising from the lease. The Company applied its incremental borrowing rate (“IBR”) as the discount rate to the remaining lease payments to derive a present value calculation for initial measurement of the operating lease liability. The IBR reflects the interest rate the Company would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments. Lease expense is recognized on a straight-line basis over the lease term.

During the year ended December 31, 2025, the Company entered into a fifteen year lease agreement, following a sixteen-month base rent abatement period, for the Company's headquarters. The base rent amount for the premises commences at $6.2 million per annum and is escalated by approximately 9% on the fifth anniversary of rent commencement and by an additional approximately 8% on the tenth anniversary of rent commencement. The lease is not set to commence until the Company moves to the new premises later in 2026.

As of June 30, 2026, the ROU lease asset was $7.6 million and operating lease liability was $9.1 million. As of December 31, 2025, the ROU lease asset was $9.6 million and operating lease liability was $12.3 million.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
(In thousands)
Operating lease cost	$	1,951	$	2,053	$	3,963	$	4,104



Cash paid for amounts included in the measurement of operating leases liability	2,506		2,745		5,073		5,488
Right-of-use assets obtained in exchange for lease liabilities	—		829		1,721		829

The following table presents the remaining commitments for operating lease payments for the next five years and thereafter, as well as a reconciliation to the discounted operating leases liability recorded in the Consolidated Statements of Financial Condition as of June 30, 2026:


(In thousands)	As of June 30, 2026
2026	$	4,552
2027	1,936
2028	1,186
2029	939
2030	645
Thereafter	258
Total undiscounted operating lease payments	9,516
Less: present value adjustment	422
Total Operating leases liability	$	9,094