LEASES
Operating lease cost was $10.1 million, $10.8 million and $12.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, sublease income was $483,000, $715,000 and $1.3 million, respectively. Variable rent expense and short-term lease expense were not material for the years ended December 31, 2025 and 2024.
The following table presents the impact of leases on the Company's consolidated balance sheets at December 31, 2025 and 2024:
| | | | | | | | | | | | | | | | | |
| | | December 31, |
| (dollars in thousands) | Location | | 2025 | | 2024 |
| Operating lease right-of-use assets | Other assets | | $ | 42,200 | | | $ | 45,069 | |
| Operating lease liabilities | Other liabilities | | 50,676 | | | 53,403 | |
Future maturities of the Company's operating lease liabilities are summarized as follows:
| | | | | | | | |
| (dollars in thousands) | | |
| Year Ended December 31, | | Lease Liability |
| 2026 | | $ | 10,342 | |
| 2027 | | 9,147 | |
| 2028 | | 7,752 | |
| 2029 | | 6,617 | |
| 2030 | | 5,743 | |
| Thereafter | | 15,102 | |
| Total lease payments | | $ | 54,703 | |
| Less: Interest | | (4,027) | |
| Present value of lease liabilities | | $ | 50,676 | |
| | | | | | | | | | | | | | | | | |
| (dollars in thousands) | December 31, |
Supplemental lease information | 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease term (years) | 6.5 | | 6.9 | | 7.6 |
| Weighted-average discount rate | 2.24 | % | | 1.92 | % | | 1.68 | % |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases (cash payments) | $ | 10,476 | | | $ | 11,378 | | | $ | 12,045 | |
| Operating cash flows from operating leases (lease liability reduction) | $ | 10,476 | | | $ | 11,378 | | | $ | 12,045 | |
| Operating lease right-of-use assets obtained in exchange for leases entered into during the year | $ | 3,309 | | | $ | 5,488 | | | $ | 2,827 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.