BV Financial, Inc. Leases Disclosure
Note 13 – Leasing Arrangements
The Company leases real estate properties for a portion of its network of bank branches. All of the Company’s leases are currently classified as operating.
The following table shows the operating lease right of use assets and operating lease liabilities as of December 31, 2025 and 2024:
|
|
Consolidated Balance |
|
|
|
|
|
|
||
|
|
Sheet classification |
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
(dollars in thousands) |
|
|
|
|
|
|
|
|
||
Operating lease right of use asset |
|
|
$ |
709 |
|
|
$ |
926 |
|
|
Operating lease liabilities |
|
|
$ |
751 |
|
|
$ |
967 |
|
|
|
|
|
|
|
|
|
|
|
||
Other information related to leases: |
|
|
|
|
|
|
|
|
||
Weighted average remaining lease term of operating leases |
|
|
|
4.02 years |
|
|
4.7 years |
|
||
Weighted average discount rate of operating leases |
|
|
|
|
4.47 |
% |
|
|
4.40 |
% |
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
$ |
238,000 |
|
|
$ |
231,000 |
|
Operating lease costs included in occupancy expense in the Consolidated Statements of Income for the years ended December 31, 2025 and December 31, 2024 were $289,000 and $302,000, respectively.
Future undiscounted lease payments for operating leases, including those option years for which the Company is reasonably certain to renew, are as follows:
|
|
Amount |
|
|
Year ending December 31, |
|
(dollars in thousands) |
|
|
2026 |
|
$ |
231 |
|
2027 |
|
|
138 |
|
2028 |
|
|
75 |
|
2029 |
|
|
75 |
|
2030 |
|
|
75 |
|
Thereafter |
|
|
191 |
|
Total undiscounted lease payments |
|
|
785 |
|
Less: imputed interest |
|
|
34 |
|
Present value of operating lease liabilities |
|
$ |
751 |
|
Note 13 – Leasing Arrangements (Continued)
The Company leased office space to non-related third parties and received rental income of $172,000 for the year ended December 31, 2025.
The following table shows the future operating lease payments due to be received by year.
|
|
Amount |
|
|
Year ending December 31, |
|
(dollars in thousands) |
|
|
2026 |
|
$ |
178 |
|
2027 |
|
|
183 |
|
2028 |
|
|
189 |
|
2029 |
|
|
194 |
|
2030 |
|
|
200 |
|
Thereafter |
|
|
419 |
|
Total |
|
$ |
1,363 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 22, 2024 | |
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.