Leases (ASC Topic 842) establishes a right of use model that requires a lessee to record a right of use asset (“ROU”) and a lease liability for all leases with terms longer than 12 months. The Company is obligated under 30 operating lease agreements for 28 branches and its corporate offices with terms extending through 2042. The Company’s lease agreements include options to renew at the Company’s discretion. The extensions are reasonably certain to be exercised, therefore they were considered in the calculations of the ROU asset and lease liability.

The following table represents the classification of the Company’s right of use asset and lease liability.


	Statement of Financial	Six Months Ended			Year Ended
	Condition Location	June 30, 2026			December 31, 2025
		(In thousands)
Operating Lease Right of Use Asset:
Gross carrying amount beginning of year		$	20,121		$	21,903
Increased asset from new leases			860			1,165
Accumulated amortization			(1,516	)		(2,947	)
Net book value	Operating lease right-of-use asset	$	19,465		$	20,121
Operating Lease Liability:
Lease liability	Operating lease liability	$	20,534		$	21,194

As of June 30, 2026, the weighted-average remaining lease terms for operating leases was 9.8 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.55%. The Company used Federal Home Loan Bank (“FHLB”) fixed rate advances or at the time the lease was placed in service for the term most closely aligning with remaining lease term.

Future minimum payments under operating leases with terms longer than 12 months are as follows at June 30, 2026 (in thousands):


	Amount
	(In thousands)
Twelve months ended June 30,
2027	$	3,758
2028		3,524
2029		3,191
2030		2,851
2031		2,285
Thereafter		11,190
Total future operating lease payment		26,799
Amounts representing interest		(6,265	)
Present value of net future lease payments	$	20,534