v3.26.1
Leases, Premises and Equipment
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases, Premises and Equipment Leases, Premises and Equipment
Lessor Arrangements
We provide direct financing leases for equipment included in our commercial loan portfolio.

Interest income on lease financing is recorded over the lease term and recorded in Interest income - Loans and leases on the Condensed Consolidated Statements of Income (Loss). The following table presents our interest income on lease financing:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest income on lease financing
$20 $24 $41 $48 

Lessee Arrangements

We have operating leases for offices, branches, equipment and other items.

Variable costs such as the proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease costs are recorded in Occupancy and equipment on the Condensed Consolidated Statements of Income (Loss) and costs were as follows:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease cost$17 $24 $34 $47 

Supplemental balance sheet information related to our operating lease arrangements is presented below:

June 30, 2026December 31, 2025
Operating Leases:
Operating lease right-of-use assets
$373 $380 
Operating lease liabilities
$418 $427 
Weighted average remaining lease term9.8 years10.1 years
Weighted average discount rate %4.75 %4.79 %

The table below presents the supplemental cash flow information related to the leases:

Six Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$36 $36 

Premises and Equipment

The table below presents our Premises and equipment:

June 30, 2026December 31, 2025
Premises and equipment
$944 $1,009 
Less: Accumulated depreciation
(472)(532)
Premises and equipment, net
$472 $477 

The table below presents our depreciation expense:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Depreciation expense(1)
$10 $10 $20 $21 
(1)Included in Occupancy and equipment expense in the Condensed Consolidated Statements of Income (Loss).
Leases, Premises and Equipment Leases, Premises and Equipment
Lessor Arrangements
We provide direct financing leases for equipment included in our commercial loan portfolio.

Interest income on lease financing is recorded over the lease term and recorded in Interest income - Loans and leases on the Condensed Consolidated Statements of Income (Loss). The following table presents our interest income on lease financing:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest income on lease financing
$20 $24 $41 $48 

Lessee Arrangements

We have operating leases for offices, branches, equipment and other items.

Variable costs such as the proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease costs are recorded in Occupancy and equipment on the Condensed Consolidated Statements of Income (Loss) and costs were as follows:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Operating lease cost$17 $24 $34 $47 

Supplemental balance sheet information related to our operating lease arrangements is presented below:

June 30, 2026December 31, 2025
Operating Leases:
Operating lease right-of-use assets
$373 $380 
Operating lease liabilities
$418 $427 
Weighted average remaining lease term9.8 years10.1 years
Weighted average discount rate %4.75 %4.79 %

The table below presents the supplemental cash flow information related to the leases:

Six Months Ended June 30,
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$36 $36 

Premises and Equipment

The table below presents our Premises and equipment:

June 30, 2026December 31, 2025
Premises and equipment
$944 $1,009 
Less: Accumulated depreciation
(472)(532)
Premises and equipment, net
$472 $477 

The table below presents our depreciation expense:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Depreciation expense(1)
$10 $10 $20 $21 
(1)Included in Occupancy and equipment expense in the Condensed Consolidated Statements of Income (Loss).