Note 14 - Leases

6 Months Ended

Jun. 30, 2026

NOTE 14 - LEASES

We lease several of our operating facilities under various non-cancellable operating leases expiring at various dates through 2037. We are also responsible for common area maintenance, taxes, and insurance at the various branch locations.

Future minimum rent payments on our leases were as follows as of the date indicated:

	*As of June 30, 2026*
	*(dollars in thousands)*
Remainder of 2026	$	2,555
2027		6,152
2028		5,191
2029		3,040
2030		2,683
Thereafter		6,240
Total future minimum lease payments	$	25,861
Less amount of payment representing interest		(2,025	)
Total present value of lease payments	$	23,836

The minimum rent payments shown above are given for the existing lease obligation and are not a forecast of future rental expense. Total rental expense, recognized on a straight-line basis, was $1.5 million, $1.5 million, and $1.5 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, and $2.9 million for each of the six months ended June 30, 2026 and 2025. The Company received rental income of $164,000, $157,000, and $158,000 for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, and $321,000 and $316,000 for the six months ended June 30, 2026 and 2025.

The following table presents the right-of-use (“ROU”) assets and lease liabilities recorded on our consolidated balance sheet, the weighted-average remaining lease terms and discount rates, as of the dates indicated:

	*June 30,*			*December 31,*
	*2026*			*2025*
Operating Leases	*(dollars in thousands)*
ROU assets	$	22,068		$	23,026
Lease liabilities		23,836			24,800

Weighted-average remaining lease term (in years)		5.64			5.96
Weighted-average discount rate		3.48	%		2.97	%