Leases

6 Months Ended

Jun. 30, 2026

13. Leases

Primero leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2028. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable operating lease expiring in 2029. Nodak Insurance leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2029. In addition, Nodak Insurance leases server equipment under a non-cancellable finance lease expiring in 2026.

We determine whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property or equipment for a period of time in exchange for consideration. We generally must also have the right to obtain substantially all of the economic benefits from the use of the property and equipment. Lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates based on the floating interest rate on our Line of Credit with Wells Fargo Bank, N.A. at the lease commencement date, as rates are not implicitly stated in most leases. Lease liabilities are included in accrued expenses and other liabilities and right-of-use assets are included in other assets in our Consolidated Balance Sheets.

There were expenses of $112 and $114 related to these leases during the three months ended June 30, 2026 and 2025, respectively, and $226 and $230 during the six months ended June 30, 2026 and 2025.

Additional information regarding the Company’s leases are as follows:

	As of and For the Three Months Ended June 30,				As of and For the Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease expense	$	91	$	91	$	183	$	183
Finance lease cost
Amortization of right-of-use assets		20		20		40		40
Interest on lease liabilities		1		3		3		7
Finance lease cost		21		23		43		47
Total lease cost	$	112	$	114	$	226	$	230

Other information on leases:
Cash payments included in operating cash flows from operating leases	$	99	$	98	$	198	$	195
Cash payments included in operating cash flows from finance leases		1		3		3		7
Cash payments included in financing cash flows from finance leases		29		27		57		53
Right-of-use assets obtained in exchange for new operating lease liabilities		—		—		—		—
Right-of-use assets obtained in exchange for new finance lease liabilities		—		—		—		—
Weighted average discount rate – operating leases		4.41%		4.46%		4.41%		4.46%
Weighted average discount rate – finance leases		8.50%		8.50%		8.50%		8.50%
Weighted average remaining lease term in years – operating leases		3.0 years		4.0 years		3.0 years		4.0 years
Weighted average remaining lease term in years – finance leases		0.3 years		1.3 years		0.3 years		1.3 years

The following table presents the contractual maturities of the Company’s lease liabilities for each of the four years in the period ending December 31, 2029, and thereafter, reconciled to our lease liability at June 30, 2026:

Year ending December 31,	Operating Leases		Finance Leases		Total
2026 (six months remaining)	$	200	$	40	$	240
2027		401		—		401
2028		376		—		376
2029		212		—		212
Thereafter		—		—		—
Total undiscounted lease payments		1,189		40		1,229
Less: present value adjustment		71		—		71
Lease liability at June 30, 2026	$	1,118	$	40	$	1,158