Quarterly report [Sections 13 or 15(d)]

Note 6 - Leases

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Note 6 - Leases
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

NOTE 6 - LEASES

 

The Company leases space under non-cancelable operating leases for several of its banking offices and certain office equipment. The leases have remaining terms up to 14 years. At June 30, 2025, the Company had lease right-of-use assets and lease liabilities totaling $23.7 million and $24.7 million, respectively, compared to $26.1 million and $27.1 million, respectively, at December 31, 2024, which are reflected in other assets and other liabilities, respectively, in the Company’s Consolidated Balance Sheets.

 

Maturities of operating lease liabilities are as follows:

 

   

June 30, 2025

 
   

(In Thousands)

 

2025 (remaining)

  $ 2,755  

2026

    4,862  

2027

    4,223  

2028

    3,361  

2029

    2,795  

thereafter

    10,963  

Total lease payments

    28,958  

Less: imputed interest

    (4,264 )

Present value of operating lease liabilities

  $ 24,694  

 

As of June 30, 2025, the weighted average remaining term of operating leases and the weighted average discount rate used in the measurement of operating lease liabilities was 7.6 years and 3.81%, respectively, compared to 7.9 years and 3.74%, respectively, as of June 30, 2024.

 

Operating cash flows related to leases were $1.5 million and $3.0 million for the three and six months ended June 30, 2025, respectively, compared to $1.4 million and $2.8 million for the three and six months ended June 30, 2024, respectively.

 

Lease costs during the three and six months ended June 30, 2025 and June 30, 2024 were as follows (in thousands):

 

   

Three Months Ended June 30,

 
   

2025

   

2024

 

Operating lease cost

  $ 1,491     $ 1,401  

Short-term lease cost

    18       -  

Variable lease cost

    225       220  

Sublease income

    (5 )     (5 )

Net lease cost

  $ 1,729     $ 1,616  

 

   

Six Months Ended June 30,

 
   

2025

   

2024

 

Operating lease cost

  $ 2,982     $ 2,795  

Short-term lease cost

    34       -  

Variable lease cost

    452       433  

Sublease income

    (11 )     (11 )

Net lease cost

  $ 3,457     $ 3,217