Note 6 - Leases

6 Months Ended

Jun. 30, 2026

NOTE 6 – LEASES

The Company has operating leases for retail bank and home lending branches, loan production offices, and certain equipment. At June 30, 2026, these leases have remaining terms ranging from three months to nine years and one month, with some including options to extend for up to five years.

The components of lease cost (included in occupancy expense on the Consolidated Statements of Income) for the three and six months ended June 30, 2026 and 2025 are as follows:

	Three Months Ended June 30,
Lease cost:	2026		2025
Operating lease cost	$	367	$	496
Short-term lease cost		3		8
Total lease cost	$	370	$	504

	For the Six Months Ended June 30,
Lease cost:	2026		2025
Operating lease cost	$	731	$	964
Short-term lease cost		10		15
Total lease cost	$	741	$	979

The following table provides supplemental information related to operating leases at or for the three and six months ended June 30, 2026 and 2025:

	At or For the Three months Ended June 30,
Cash paid for amounts included in the measurement of lease liabilities:	2026			2025
Operating cash flows from operating leases	$	370		$	505
Weighted average remaining lease term- operating leases (in years)		5.9			4.7
Weighted average discount rate- operating leases		4.33	%		3.69	%

	At or For the Six Months Ended June 30,
Cash paid for amounts included in the measurement of lease liabilities:	2026			2025
Operating cash flows from operating leases	$	742		$	988
Weighted average remaining lease term- operating leases (in years)		5.9			4.7
Weighted average discount rate- operating leases		4.33	%		3.69	%

The Company’s leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the discount rate used in determining the lease liability for each individual lease was the FHLB of Des Moines’ fixed advance rate.

Maturities of operating lease liabilities at June 30, 2026 for future periods are as follows:

Remainder of 2026	$	726
2027		1,357
2028		1,107
2029		961
2030		696
Thereafter		3,211
Total lease payments		8,058
Less imputed interest		(1,305)
Total	$	6,753