The Company has 16 operating leases for branches and office spaces (including headquarters) and six operating leases for equipment at both June 30, 2026 and December 31, 2025. Our leases have remaining lease terms ranging from less than one year to approximately 13.6 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term. Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through February of 2040.

Supplemental balance sheet information related to leases was as follows:


	June 30,			December 31,
	2026			2025
	(Dollars in thousands)
Operating lease ROU assets	$	27,055		$	27,583
Operating lease liabilities		28,874			29,353
Weighted-average remaining lease term-operating leases	10.8 years			11.2 years
Weighted average discount rate-operating leases		5.1	%		5.1	%

The components of lease expense and cash flow information related to leases were as follows:


		For the Three				For the Six
		Months Ended				Months Ended
		June 30,				June 30,
		2026		2025		2026		2025
		(Dollars in thousands)
Lease Cost
Operating lease cost	Occupancy and equipment	$	1,050	$	1,047	$	2,099	$	2,172
Operating lease cost	Other operating expenses		4		4		7		4
Short-term lease cost	Other operating expenses		8		7		15		16
Variable lease cost	Occupancy and equipment		35		41		73		88
Total lease cost		$	1,097	$	1,099	$	2,194	$	2,280

The Company’s minimum annual rental payments under the terms of the leases are as follows at June 30, 2026:


	Minimum Rental
Years ended December 31:	(in thousands)
Remainder of 2026	$	2,049
2027		3,866
2028		3,808
2029		3,360
2030		3,423
Thereafter		21,157
Total Minimum payments required		37,663
Less: implied interest		8,789
Present value of lease liabilities	$	28,874