Quarterly report [Sections 13 or 15(d)]

LEASES

v3.26.3
LEASES
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases
NOTE 6 – LEASES
Operating leases in
which the Company
is the lessee are recorded as
operating lease right of use
(“ROU”) assets and operating
liabilities, included
in other assets and
liabilities, respectively, on
its Consolidated Statements
of Financial Condition.
The Company’s
operating leases primarily
relate to banking
offices with remaining lease
terms from less than
one to
39
years.
The
Company’s
leases are not
complex and
do not contain
residual value guarantees,
variable lease payments,
or significant assumptions
or judgments made
in applying the requirements
of Topic 842.
Operating leases with an initial term of 12 months or less are not
recorded on the Consolidated Statements of Financial Condition and the related lease expense is recognized on a straight-line basis
over the lease term.
At September
30, 2026, the
operating lease ROU assets
and liabilities were $
24.8
million and $
25.5
million,
respectively. At
December 31, 2025,
ROU assets and
liabilities were $
26.3
million and $
26.9
million, respectively. The
Company
does not have
any finance
leases.
The table below summarizes
our lease expense
and other
information
related to the
Company’s
operating leases.
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Dollars in Thousands)
2026
2025
2026
2025
Operating lease expense
$
922
$
928
$
2,746
$
2,689
Short-term lease expense
139
171
467
722
Total lease
expense
$
1,061
$
1,099
$
3,213
$
3,411
Other information:
Cash paid
for amounts
included in the measurement
of lease liabilities:
Operating cash
flows from operating
leases
$
929
$
882
$
2,775
$
2,676
Right-of-use assets
obtained
in exchange for
new operating lease liabilities
50
44
866
4,041
Weighted average
remaining lease term
— operating leases (in years)
15.4
15.7
15.4
15.7
Weighted average
discount rate
— operating leases
3.7%
3.7%
3.7%
3.7%
The table below summarizes
the maturity
of remaining lease
liabilities:
(Dollars in Thousands)
September 30, 2026
2026
$
915
2027
3,478
2028
3,201
2029
2,911
2030
2,919
2031 and
thereafter
18,790
Total
$
32,214
Less: Interest
(6,757)
Present Value
of Lease liability
$
25,457
A related party
is the lessor in a land lease
with the Company.
The payments
under the lease
agreement provide
for annual
lease
payments
of approximately $
0.1
million annually through December
2033, and thereafter,
increase by
5
% every
10
years until 2053
at
which time the rent
amount
will adjust based on reappraisal
of the parcel rental value.
The Company
then has
four
successive options
to extend
the lease for
five years
each with rental
increases of
5
% at each
extension.
The aggregate remaining
obligation of the
lease
totaled $
1.9
million at September
30, 2026.
Further, in accordance
with the lease agreement,
the Company
made a
$
0.2
million
payment
in July 2025 to the
lessor as reimbursement
for a portion
of the costs related
to the development
of subject
property to
support the construction
of a new banking
office by the
Company.