Leases

6 Months Ended

Jun. 30, 2026

As of June 30, 2026, the Company was the lessee in 48 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year.

Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability.

Information related to the Company’s leases is presented below as of June 30, 2026 and December 31, 2025:


		June 30,			December 31,

	Classification	2026			2025
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	47,535		$	49,249
Finance leases	Premises and equipment, net	980			1,035
Total right-of-use assets		$	48,515		$	50,284
Lease liabilities:
Operating leases	Operating lease liabilities	$	57,940		$	60,556
Finance leases	Borrowings	1,077			1,127
Total lease liabilities		$	59,017		$	61,683
Weighted average remaining lease term (in years) - operating		10.6			10.9
Weighted average remaining lease term (in years) - finance		8.86			9.35
Weighted average discount rate - operating		3.73		%	3.68		%
Weighted average discount rate - finance		1.76		%	1.76		%

The components of total lease expense included in the consolidated statements of income were as follows:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
	Classification	2026		2025		2026		2025
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	1,944	$	1,945	$	3,798	$	3,823
Short-term lease cost	Occupancy and equipment	64		74		139		159
Variable lease cost	Occupancy and equipment	382		475		862		969
Gain on lease terminations	Occupancy and equipment	(42)		—		(42)		—
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	5		5		10		10
Amortization of right-of-use asset	Occupancy and equipment	27		28		55		55

Sublease income	Occupancy and equipment	(205)		(215)		(417)		(420)
Total lease cost		$	2,175	$	2,312	$	4,405	$	4,596

The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes.

A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of June 30, 2026 is as follows:


	Operating		Finance
	Leases		Lease

June 30, 2027	$	4,595	$	62
June 30, 2028	8,657		125
June 30, 2029	7,853		127
June 30, 2030	6,766		129
June 30, 2031	6,395		131
Thereafter	36,975		589
Total undiscounted future minimum lease payments	71,241		1,163
Less: imputed interest	(13,301)		(86)
Lease liabilities	$	57,940	$	1,077

Leases

As of June 30, 2026, the Company was the lessee in 48 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year.

Information related to the Company’s leases is presented below as of June 30, 2026 and December 31, 2025:


		June 30,			December 31,

	Classification	2026			2025
Right-of-use assets:
Operating leases	Operating lease right-of-use assets	$	47,535		$	49,249
Finance leases	Premises and equipment, net	980			1,035
Total right-of-use assets		$	48,515		$	50,284
Lease liabilities:
Operating leases	Operating lease liabilities	$	57,940		$	60,556
Finance leases	Borrowings	1,077			1,127
Total lease liabilities		$	59,017		$	61,683
Weighted average remaining lease term (in years) - operating		10.6			10.9
Weighted average remaining lease term (in years) - finance		8.86			9.35
Weighted average discount rate - operating		3.73		%	3.68		%
Weighted average discount rate - finance		1.76		%	1.76		%

The components of total lease expense included in the consolidated statements of income were as follows:


		Three Months Ended				Six Months Ended
		June 30,				June 30,
	Classification	2026		2025		2026		2025
Operating lease costs:
Amortization of right-of-use asset	Occupancy and equipment	$	1,944	$	1,945	$	3,798	$	3,823
Short-term lease cost	Occupancy and equipment	64		74		139		159
Variable lease cost	Occupancy and equipment	382		475		862		969
Gain on lease terminations	Occupancy and equipment	(42)		—		(42)		—
Finance lease costs:
Interest on lease liabilities	Interest expense on borrowings	5		5		10		10
Amortization of right-of-use asset	Occupancy and equipment	27		28		55		55

Sublease income	Occupancy and equipment	(205)		(215)		(417)		(420)
Total lease cost		$	2,175	$	2,312	$	4,405	$	4,596

A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of June 30, 2026 is as follows:


	Operating		Finance
	Leases		Lease

June 30, 2027	$	4,595	$	62
June 30, 2028	8,657		125
June 30, 2029	7,853		127
June 30, 2030	6,766		129
June 30, 2031	6,395		131
Thereafter	36,975		589
Total undiscounted future minimum lease payments	71,241		1,163
Less: imputed interest	(13,301)		(86)
Lease liabilities	$	57,940	$	1,077