Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases Leases
Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.
The following table summarizes supplemental cash flow and other information related to our operating leases:
(Dollars in thousands) Three Months Ended March 31,
2026 2025
Operating cash flows
Cash paid for amounts included in the measurement of lease liabilities for leases $ 404  $ 397 
Weighted-average remaining lease terms (in years) - operating leases 13 14
Weighted-average discount rate - operating leases 7.64 % 7.66 %
Variable lease payments $ 70  $ 70 
Operating lease costs 481  481 
Total lease costs (1) $ 551  $ 551 
(1) Included in occupancy and equipment costs on the condensed consolidated statements of income
The following table represents the maturity of the Company's operating lease liabilities as of March 31, 2026:
(Dollars in thousands)
Maturity Analysis
Remainder 2026 $ 1,221 
2027 1,657 
2028 1,692 
2029 1,679 
2030 1,688 
2031 1,722 
Thereafter 13,388 
Total 23,047 
Less: Present value discount (8,643)
Lease liability $ 14,404 
At March 31, 2026, operating lease right of use assets were $14.9 million and are included in premises and equipment on the consolidated balance sheet. Operating lease liabilities of $14.4 million were included in other liabilities on the consolidated balance sheet.