The Company's lease commitments consist primarily of agreements to lease land and office facilities that it occupies to operate several of its retail branch locations that are classified as operating leases and are recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. As of September 30, 2026, the Company has operating lease ROU assets of $12.0 million and operating lease liabilities of $12.1 million. As of December 31, 2025, the Company had operating lease ROU assets of $5.9 million and operating lease liabilities of $5.9 million. The Company did not have any agreements that are classified as finance leases as of September 30, 2026 or December 31, 2025.

The Company entered into a new seven year lease for the headquarters building for its subsidiary, Residential Mortgage, LLC (“RML”), in the first quarter of 2026. Upon commencement, the operating lease ROU assets increased $6.3 million and the operating lease liabilities increased $6.4 million.


		Three Months Ended September 30,		Nine Months Ended September 30,
(In Thousands)		2026	2025	2026		2025
Lease Cost
	Operating lease cost(1)	$594	$795	$1,931		$2,264
	Short term lease cost(1)	57	42	200		206
	Total lease cost	$651	$837	$2,131		$2,470

Other information
	Operating leases - operating cash flows			$1,685		$2,052
	Weighted average lease term - operating leases, in years			10.05		12.40
	Weighted average discount rate - operating leases			4.09	%	3.83	%
(1)	Expenses are classified within occupancy expense on the Consolidated Statements of Income.

The table below reconciles the remaining undiscounted cash flows for the next five years for each twelve-month period presented (unless otherwise indicated) and the total of the subsequent remaining years to the operating lease liabilities recorded on the balance sheet:


(In Thousands)			Operating Leases
2026 (Three months)			$605
2027			2,293
2028			2,062
2029			1,897
2030			1,519
Thereafter			6,582
Total minimum lease payments			$14,958
Less: amount of lease payment representing interest			(2,813)
Present value of future minimum lease payments			$12,145