v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The Company currently has operating leases for branch locations, a loan production office, and its corporate office. The lease term generally begins on the date the Company becomes legally obligated for the rent payments or takes possession of the building premises, whichever is earlier. The Company’s real estate leases have initial terms ranging from one to 10.5 years and typically include one renewal option. As of June 30, 2026, The Company’s leases had remaining terms ranging from 8 months to 3.9 years. The operating leases require the Company to pay property taxes and operating expenses for the properties. The Company also has finance leases for certain equipment, including copier machines, which had an initial term of five years and a remaining term of approximately 3.5 years as of June 30, 2026. During the three months ended June 30, 2026, the Company completed the closure of the Tacoma branch as part of ongoing strategic consolidation efforts. In connection with this closure, the lease was modified in the first quarter of 2026 to a shorten the lease term, which expired during ended in the second quarter of 2026. The modification resulted in the derecognition of $98 thousand of the operating right-of-use asset and corresponding operating lease liability during the six months ended June 30, 2026.
The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands):
June 30,
2026		December 31,
2025
Operating lease right-of-use assets$2,798 $3,319 
Finance lease right-of-use assets91 104 
Operating lease liabilities3,009 3,565 
Finance lease liabilities94 106 
The following table presents the components of lease expense for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Lease expense
Operating leases$262 $275 $540 $548 
Finance leases
Amortization of right-of-use assets6 13 13 13 
Interest on lease liabilities1 3 2 3 
Sublease income— — — — 
Net lease expense$269 $291 $555 $564 
The following table presents the schedule of lease liability payments at the date indicated (in thousands):
June 30,Finance LeasesOperating LeasesTotal Lease Payments
Remainder of 2026$14 $565 $579 
202729 1,084 1,113 
202829 996 1,025 
202929 456 485 
2030— 48 48 
Total lease payments101 3,149 3,250 
Less: Present value discount7 140 147 
Present value of lease liabilities$94 $3,009 $3,103 
Lease term and discount rate by lease type consisted of the following at the dates indicated:
June 30,
2026		December 31,
2025
Weighted-average remaining lease term:
Operating leases3.0 years3.5 years
Finance leases3.5 years4.0 years
Weighted-average discount rate (annualized):
Operating leases3.04 %3.08 %
Finance leases4.41 %4.41 %

Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows:
Operating leases$285 $280 $579 $559 
Finance leases1 3 2 3 
Financing cash flows:
Finance leases6 12 12 12 
Leases Leases
The Company currently has operating leases for branch locations, a loan production office, and its corporate office. The lease term generally begins on the date the Company becomes legally obligated for the rent payments or takes possession of the building premises, whichever is earlier. The Company’s real estate leases have initial terms ranging from one to 10.5 years and typically include one renewal option. As of June 30, 2026, The Company’s leases had remaining terms ranging from 8 months to 3.9 years. The operating leases require the Company to pay property taxes and operating expenses for the properties. The Company also has finance leases for certain equipment, including copier machines, which had an initial term of five years and a remaining term of approximately 3.5 years as of June 30, 2026. During the three months ended June 30, 2026, the Company completed the closure of the Tacoma branch as part of ongoing strategic consolidation efforts. In connection with this closure, the lease was modified in the first quarter of 2026 to a shorten the lease term, which expired during ended in the second quarter of 2026. The modification resulted in the derecognition of $98 thousand of the operating right-of-use asset and corresponding operating lease liability during the six months ended June 30, 2026.
The following table presents the lease right-of-use assets and lease liabilities recorded on the Condensed Consolidated Balance Sheets at the dates indicated (in thousands):
June 30,
2026		December 31,
2025
Operating lease right-of-use assets$2,798 $3,319 
Finance lease right-of-use assets91 104 
Operating lease liabilities3,009 3,565 
Finance lease liabilities94 106 
The following table presents the components of lease expense for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Lease expense
Operating leases$262 $275 $540 $548 
Finance leases
Amortization of right-of-use assets6 13 13 13 
Interest on lease liabilities1 3 2 3 
Sublease income— — — — 
Net lease expense$269 $291 $555 $564 
The following table presents the schedule of lease liability payments at the date indicated (in thousands):
June 30,Finance LeasesOperating LeasesTotal Lease Payments
Remainder of 2026$14 $565 $579 
202729 1,084 1,113 
202829 996 1,025 
202929 456 485 
2030— 48 48 
Total lease payments101 3,149 3,250 
Less: Present value discount7 140 147 
Present value of lease liabilities$94 $3,009 $3,103 
Lease term and discount rate by lease type consisted of the following at the dates indicated:
June 30,
2026		December 31,
2025
Weighted-average remaining lease term:
Operating leases3.0 years3.5 years
Finance leases3.5 years4.0 years
Weighted-average discount rate (annualized):
Operating leases3.04 %3.08 %
Finance leases4.41 %4.41 %

Supplemental cash flow information related to leases was as follows for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows:
Operating leases$285 $280 $579 $559 
Finance leases1 3 2 3 
Financing cash flows:
Finance leases6 12 12 12