The Company evaluates all contracts at commencement to determine if a lease is present. In accordance with ASC Topic 842, leases are defined as either operating or finance leases. The Company’s lease contracts are all classified as operating leases and create operating right-of-use (“ROU”) assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. The leases are primarily ROU assets of land and building for branch and loan production locations. ROU assets are reported in Accrued Interest Receivable and Other Assets and the related lease liabilities in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition.

The following tables present the lease expense, ROU assets, weighted average term, discount rate and maturity analysis of lease liabilities for operating leases for the periods and dates indicated.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
(Dollars in Thousands)

Operating Lease Expense	$	161	$	123	$	308	$	240

Variable Lease Expense	11		12		23		24
Total Lease Expense	$	172	$	135	$	331	$	264


	June 30, 2026			December 31, 2025
(Dollars in Thousands)

Operating Leases:
ROU Assets	$	2,829		$	2,529
Weighted Average Lease Term in Years	9.05			10.42
Weighted Average Discount Rate	4.20		%	4.25		%


	June 30, 2026
(Dollars in Thousands)

Maturity Analysis:
Due in One Year	$	633
Due After One Year to Two Years	611
Due After Two Years to Three Years	454
Due After Three Years to Four Years	265
Due After Four to Five Years	267
Due After Five Years	1,408
Total	$	3,638
Less: Present Value Discount	722
Lease Liabilities	$	2,916

During the six months ended June 30, 2026, the Bank entered into a lease agreement under which the Bank leased office space located in Canonsburg, Pennsylvania. The lease agreement is for an initial term of three years with specific renewal options. The lease agreement includes a 2.5% annual rent escalation during the initial term and renewal terms, if exercised. The Bank recorded an operating lease ROU asset and corresponding lease liability of $495,000.