The
Company
leases
certain
banking
facilities
and
office
space
under
non-cancelable
operating
lease
agreements.
During
the
six
months
ended
June
30,
2026,
the
Company
exercised
renewal
options
and
modified
certain
lease
arrangements, including
extensions of
the Coral Gables
branch and
Doral branch/headquarters
leases for
additional
five
-
year terms. These lease modifications resulted in the remeasurement of operating
lease liabilities and corresponding right-
of-use assets. Operating lease
right-of-use assets and lease
liabilities totaled $
12.6
million at June 30, 2026,
compared to
$
5.5
million at December 31, 2025. The lease modifications were measured using an incremental borrowing rate of
4.27
%.
The Company’s incremental borrowing rate is based on the
FHLB advances rate matching or nearing the lease term.
There
were no material changes
to the Company's lease
accounting policies from those
disclosed in Note 4, Leases,
included in
the Annual Report on Form 10-K for the year ended December
31, 2025.