Leases:

The Company has operating leases for branch office locations, vehicles, land and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 15.8 years, some of which have options to extend the lease for up to 15 years. The right of use assets and lease liabilities were $11.1 million and $11.4 million as of  September 30, 2026, respectively, and $7.9 million and $8.2 million at  December 31, 2025, respectively. The right of use assets are included in other assets while the lease liabilities are included in other liabilities on the balance sheet.

Lease expense for the three and nine months ended September 30, 2026 was $594,000 and $1.5 million, respectively. Lease expense for the three and nine months ended September 30, 2025 was $392,000 and $1.0 million, respectively. The weighted-average remaining lease term for all leases was 8.70 years as of  September 30, 2026. The weighted-average discount rate was 3.91% for all leases as of  September 30, 2026.

On March 2, 2026, the Company performed a valuation of Middlefield's leases to determine an initial right of use asset and lease liability in connection with the Merger. The Company recorded an initial right of use asset and lease liability of $3.5 million for these leases. 

Maturities of lease liabilities are as follows as of  September 30, 2026: