BayCom Corp Leases Disclosure
6. LEASES
The Company leased 19 branches under noncancelable operating leases as of December 31, 2025. These leases expire on various dates through 2030. Many of these lease agreements include one or more renewal options, exercisable at the Company’s discretion. When the Company determines at lease commencement that it is reasonably certain to exercise a renewal option, the extended lease term is included in the measurement of the ROU asset and corresponding lease liability.
The Company uses the discount rate implicit in the lease when it is readily determinable. In instances where the implicit rate is not available, which is typically the case, the Company applies its incremental borrowing rate, determined on a collateralized basis and over a term comparable to the lease term, as of the lease commencement date.
The below maturity schedule represents the undiscounted lease payments for the five-year period and thereafter as of December 31, 2025:
Year ending December 31, | |||
2026 | $ | 3,751 | |
2027 |
| 3,507 | |
2028 |
| 3,444 | |
2029 | 2,990 | ||
Thereafter |
| 1,093 | |
Total undiscounted cash flows | 14,785 | ||
Less: interest | (1,126) | ||
Present value of lease payments | $ | 13,659 |
The following table presents the remaining weighted average lease term and discount rate at the date indicated:
| December 31, 2025 | December 31, 2024 | ||||
Weighted-average remaining lease term |
| 4.1 | years | 4.5 | years | |
Weighted-average discount rate |
| 3.9 | % | 3.8 | % | |
The following table presents certain information related to the operating lease costs included in occupancy and equipment expense on the consolidated statements of income for the dates indicated:
| | December 31, | December 31, | December 31, | ||||||
2025 | 2024 | 2023 | ||||||||
Operating lease cost | $ | 3,977 | $ | 4,053 | $ | 3,870 | ||||
Short-term lease cost |
| — |
| 15 |
| 112 | ||||
Less: Sublease income |
| (100) |
| (96) |
| (83) | ||||
Total operating lease cost, net | $ | 3,877 | $ | 3,972 | $ | 3,899 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 23, 2021 | |
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.