Note 11 - Leases

9 Months Ended

Sep. 30, 2025

NOTE 11. LEASES

The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations. The Company’s lease agreements under which its branch locations are operated have all been designated as operating leases. The Company does not lease equipment under operating leases, nor does it have leases designated as finance leases.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately, as the non-lease component amounts are readily determinable.

Quantitative information regarding the Company’s operating leases is presented below as of and for the nine months ended September 30, 2025 and 2024 (dollars in thousands).

	*September 30,*
	*2025*			*2024*
Total operating lease cost	$	337		$	331
Weighted-average remaining lease term (in years)		5.0			6.0
Weighted-average discount rate		3.4	%		3.3	%

At September 30, 2025 and December 31, 2024, the Company’s operating lease ROU assets were $1.9 million and $2.0 million, respectively, and the Company’s related operating lease liabilities were $2.0 million and $2.1 million, respectively. The Company’s operating leases have remaining terms ranging from approximately two to six years, including extension options if the Company is reasonably certain they will be exercised.

Future minimum lease payments due under non-cancelable operating leases at September 30, 2025 are presented below (dollars in thousands).

Remainder of 2025	$	114
2026		459
2027		459
2028		405
2029		337
Thereafter		350
Total	$	2,124

At September 30, 2025, the Company had not entered into any material leases that have not yet commenced.

The Bank owns its corporate headquarters building, the first floor of which is occupied by multiple tenants. The Bank, as lessor, also leases a portion of one of its branch locations. All tenant leases are operating leases. The Bank, as lessor, recognized lease income of $0.1 million and $0.3 million for the three and nine month periods ended September 30, 2025 and 2024, respectively.

Investar Holding Corp 10-Q