Note 6: Other Assets and Other Liabilities

Other assets consisted of the following:

The Company had marketable equity securities held for trading at fair value of $255 thousand at June 30, 2026 and $466 thousand at December 31, 2025. The Company recognized unrealized gains of $36 thousand and unrealized losses of $211 thousand in net income during the three and six months ended June 30, 2026, respectively. There were no purchases or sales of securities held for trading during the three and six months ended June 30, 2026 and June 30, 2025.

The Company owns 211 thousand shares of Visa Inc. (“Visa”) Class B-1 common stock, which have transfer restrictions and no carrying value. Following the resolution of certain litigation involving Visa, shares of Visa’s Class B-1 stock will convert to shares of Visa Class A common stock based on a conversion factor (1.5445 as of June 30, 2026), which is periodically adjusted to reflect Visa’s ongoing litigation costs. Given the transfer restrictions and continuing uncertainty regarding the likelihood, ultimate timing and eventual conversion of Visa Class B-1 common stock for shares of Visa Class A common stock or other marketable classes of Visa common stock, these shares are not considered to have a readily determinable fair value and have no carrying value. Visa Class A common stock trades on the New York Stock Exchange and had a closing price of $343.09 per share on June 30, 2026, the last trading day for the second quarter 2026. The ultimate value of the Company’s Visa Class B-1 shares is subject to the extent of Visa’s future litigation escrow fundings, the resulting conversion rate to Visa Class A common stock, and current and future transfer restrictions on the Visa Class B-1 common stock. At June 30, 2026, the Company did not record an adjustment to the carrying value of the Visa Class B-1 shares.

The Company invests in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for low-income housing tax credits. At June 30, 2026, these investments totaled $27,670 thousand and $9,596 thousand of this amount represents outstanding equity capital commitments that are included in other liabilities. At December 31, 2025, these investments totaled $29,891 thousand and $10,518 thousand of this amount represents outstanding equity capital commitments that are included in other liabilities. At June 30, 2026, the $9,596 thousand of outstanding equity capital commitments are expected to be paid as follows: $4,611 thousand in the remainder of 2026, $2,990 thousand in 2027, $1,095 thousand in 2028, $396 thousand in 2029, $62 thousand in 2030, and $442 thousand in 2031 or thereafter.

The amounts recognized in net income for these investments include:

Other liabilities consisted of the following:

The Company has entered into leases for most branch locations and certain other offices that were classified as operating leases primarily with original terms of five years. Certain lease arrangements contain extension options, which can be exercised at the Company’s option, for one or more additional five year terms. Unexercised extension options are not considered reasonably certain of exercise and have not been included in the lease term used to determine the lease liability or right-of-use asset. The Company did not have any finance leases as of June 30, 2026.

As of June 30, 2026, the Company’s lease liability and right-of-use asset were $22,197 thousand. The weighted average remaining life of operating leases and weighted average discount rate used to determine operating lease liabilities were 4.2 years and 3.96%, respectively, at June 30, 2026. The Company did not have any material lease incentives, unamortized initial direct costs, prepaid lease expense, or accrued lease expense as of June 30, 2026.

Total lease costs were $1,691 thousand and $3,428 thousand in the three and six months ended June 30, 2026, respectively, and were recorded within occupancy and equipment expense. Total lease costs were $1,691 thousand and $3,371 thousand in the three and six months ended June 30, 2025, respectively, and were recorded within occupancy and equipment expense. The Company did not have any material short-term or variable lease costs or sublease income during the six months ended June 30, 2026 and June 30, 2025.

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The following table summarizes the remaining lease payments of operating lease liabilities: