Note 10. Leases

The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease terms and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would affect the payment of dividends or require incurring additional financial obligations.

The following tables present information about the Company’s leases as of the dates and for the periods stated.

 

 

 

December 31,

 

(Dollars in thousands)

 

2025

 

 

2024

 

Lease liabilities

 

$

7,233

 

 

$

8,613

 

Right-of-use asset

 

 

6,637

 

 

 

7,962

 

Weighted average remaining lease term (years)

 

 

6.42

 

 

 

6.98

 

Weighted average discount rate

 

 

3.54

%

 

 

3.46

%

 

 

 

 

December 31,

 

(Dollars in thousands)

 

2025

 

 

2024

 

Operating lease cost

 

$

1,555

 

 

$

1,759

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

1,528

 

 

 

1,691

 

 

The following table presents a maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities for periods following the date stated.

 

(Dollars in thousands)

 

December 31, 2025

 

2026

 

$

1,486

 

2027

 

 

1,399

 

2028

 

 

1,178

 

2029

 

 

969

 

2030

 

 

916

 

Thereafter

 

 

2,232

 

Total undiscounted cash flows

 

 

8,180

 

Discount

 

 

(947

)

Lease liabilities

 

$

7,233

 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 10, 2025
2023Mar 15, 2024
2022Mar 10, 2023
2021Mar 11, 2022
2020Mar 29, 2021
2019Apr 14, 2020

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.