Bank First Corp Leases Disclosure
Note 21 Leases
In accordance with GAAP, leases where the Company is the lessee are recognized on-balance sheet through a right-of-use (“ROU”) model that requires recognition of a ROU lease asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.
The Company leases certain properties under operating leases that resulted in the recognition of ROU lease assets of approximately $1.6 million and corresponding lease liabilities of similar value on the Company’s Consolidated Balance Sheets as of December 31, 2025 and 2024.
Lessee Leases
The Company’s lessee leases are operating leases, and consist of leased real estate for branches. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Rent escalations are generally specified by a payment schedule, or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages.
For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. The Company is electing to utilize the Wall Street Journal Prime Rate on the date of lease commencement as the lease interest rate.
Year Ended |
| ||||||
(dollars in thousands) | | December 31, 2025 | | December 31, 2024 |
| ||
Amortization of ROU Assets - Operating Leases | $ | (2) | $ | (2) | |||
Interest on Lease Liabilities - Operating Leases |
| 87 | 87 | ||||
Operating Lease Cost (Cost resulting from lease payments) |
| 86 | 86 | ||||
Weighted Average Lease Term (Years) - Operating Leases |
| 28.00 | 29.00 | ||||
Weighted Average Discount Rate - Operating Leases |
| 5.50 | % | 5.50 | % | ||
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities is as follows (dollar amounts in thousands):
| December 31, 2025 | ||
Operating lease payments due: |
| ||
Within one year | $ | 94 | |
After one but within two years | 94 | ||
After two but within three years | 94 | ||
After three but within four years | 94 | ||
After four years but within five years | 94 | ||
After five years | 2,855 | ||
Total undiscounted cash flows | 3,325 | ||
Discount on cash flows | (1,739) | ||
$ | 1,586 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 16, 2022 | |
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.