Note 14: Leases The Company has operating and finance leases for certain banking offices and land under noncancelable agreements. Our leases have remaining lease terms that vary from less than 1 year up to 27 years, some of which include options to extend the leases for various renewal periods. All options to renew are included in the current lease term when we believe it is reasonably certain that the renewal options will be exercised. The components of lease expense are as follows:
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For the three months ended, |
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For the six months ended, |
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(In thousands) |
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June 30, 2026 |
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June 30, 2025 |
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June 30, 2026 |
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June 30, 2025 |
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Operating lease cost |
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$ |
39 |
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$ |
42 |
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$ |
78 |
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$ |
92 |
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Finance lease cost |
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|
425 |
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430 |
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|
850 |
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|
859 |
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Total lease cost |
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$ |
464 |
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$ |
472 |
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$ |
928 |
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$ |
951 |
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Supplemental cash flow information related to leases was as follows:
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For the three months ended, |
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For the six months ended, |
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(In thousands) |
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June 30, 2026 |
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June 30, 2025 |
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June 30, 2026 |
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June 30, 2025 |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows from operating leases |
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$ |
35 |
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$ |
38 |
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$ |
70 |
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$ |
84 |
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Operating cash flows from finance leases |
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425 |
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430 |
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850 |
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859 |
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Financing cash flows from finance leases |
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116 |
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111 |
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232 |
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222 |
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Supplemental balance sheet information related to leases was as follows:
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(In thousands, except lease term and discount rate) |
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As of June 30, 2026 |
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As of December 31, 2025 |
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Operating Leases: |
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Operating lease right-of-use assets |
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$ |
1,046 |
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$ |
1,098 |
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Operating lease liabilities |
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1,259 |
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1,304 |
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Finance Leases: |
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Finance lease right-of-use assets |
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$ |
15,489 |
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$ |
15,885 |
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Finance lease liabilities |
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16,201 |
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16,390 |
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Weighted Average Remaining Lease Term: |
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Operating leases |
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18.10 years |
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18.11 years |
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Finance leases |
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20.54 years |
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21.02 years |
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Weighted Average Discount Rate: |
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Operating leases |
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4.03 |
% |
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4.02 |
% |
Finance leases |
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6.02 |
% |
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6.02 |
% |
As of June 30, 2026, future maturities of lease liabilities are as follows:
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(In thousands) |
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Twelve Months Ending June 30, |
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Operating Leases |
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Finance Leases |
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2027 |
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$ |
94 |
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$ |
387 |
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2028 |
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|
82 |
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|
406 |
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2029 |
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|
88 |
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|
432 |
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2030 |
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84 |
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|
457 |
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2031 |
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|
28 |
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|
483 |
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Thereafter |
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883 |
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14,036 |
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Total future maturities of lease liabilities |
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$ |
1,259 |
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$ |
16,201 |
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The Company owns certain properties that it leases to unaffiliated third parties at market rates. Lease rental income was $111,000 and $92,000 for the three months ended June 30, 2026 and 2025, respectively. Lease rental income was $223,000 and $153,000 for the six months ended June 30, 2026 and 2025, respectively. All rental agreements with lessees are accounted for as operating leases.
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