NWSB Annual Report 2025 | Page 44

NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements

NOTE 5.

PREMISES AND EQUIPMENT

Premises and Equipment are summarized as follows at December 31:

Land Building and Improvements Branch Construction Leasehold Improvements Furniture, Fixtures, and Equipment Subtotal Less: Accumulated Depreciation and Amortization Net Carrying Value

$

$

NOTE 6.

LEASING ARRANGEMENTS

The Company has operating leases for certain buildings primarily used for branches and administrative facilities. Two of the lease agreements are with related parties discussed in Note 16. The leases have remaining terms ranging from 1 to 20 years. Certain leases require the tenant to pay real estate taxes, insurance, maintenance, and other operating expenses associated with the leased premises. Those expenses are classified in occupancy expenses on the consolidated statements of income within noninterest expenses but are not included in operating lease costs below. Operating lease ROU assets and lease liabilities are presented separately on the consolidated balance sheet.

Operating lease cost is recognized on the straight-line basis over the lease term and is included in occupancy expenses within noninterest expenses on the consolidated statements of income. Net operating lease costs in 2025 and 2024 are $ 465,962 and $ 426,254, respectively.

As of December 31, 2025 and 2024, the weighted-average remaining lease term was 12.4 and 11.6 years, respectively, and the weighted average discount rate was 3.5 % and 3.2 %, respectively, for operating leases recognized in the consolidated financial statements.

44 | 2025 NWSB Annual Report