C & F FINANCIAL CORP Leases Disclosure
NOTE 9: Leases
The Corporation’s leases comprise primarily of leases of real estate in which the Corporation is the lessee. Lease cost for the years ended December 31, 2025, 2024 and 2023 is as follows:
Year Ended December 31, |
| |||||||||
(Dollars in thousands) | | 2025 | | 2024 | | 2023 |
| |||
Operating lease cost | $ | 729 | $ | 821 | $ | 872 | ||||
Finance lease cost: | ||||||||||
Amortization of right-of-use asset | 479 | 452 | 314 | |||||||
Interest on lease liability | 233 | 220 | 121 | |||||||
Short-term lease cost | 156 | 89 | 99 | |||||||
Variable lease cost |
| 189 |
| 121 |
| 63 | ||||
Total | $ | 1,786 | $ | 1,703 | $ | 1,469 | ||||
Interest on lease liability cost is included in “Interest expense – Borrowings” and all other lease costs are included in “Occupancy” on the Consolidated Statements of Income. Variable lease payments primarily represent payments for common area maintenance, taxes and fees that are not included in base rent payments, and changes in lease payments that are adjusted for inflation.
Certain of the Corporation’s leases contain options to extend the lease term beyond the initial term. Options to extend the lease term are recognized as part of the Corporation’s lease liabilities and right-of-use assets at the commencement of a lease to the extent the Corporation is reasonably certain to exercise such options.
The Corporation’s right-of-use assets, lease liabilities, weighted average remaining lease term and weighted average discount rate of the Corporation’s leases are set forth in the following table.
| December 31, | December 31, | |||||
(Dollars in thousands) | 2025 | | 2024 | ||||
Operating leases: | |||||||
$ | 2,441 | $ | 2,237 | ||||
$ | 2,476 | $ | 2,260 | ||||
Weighted average remaining lease term (years) | 7.5 | 8.5 | |||||
Weighted average discount rate | 3.4 | % | 3.0 | % | |||
Finance leases: | |||||||
$ | 6,837 | $ | 7,316 | ||||
$ | 7,842 | $ | 8,169 | ||||
Weighted average remaining lease term (years) | 14.5 | 15.5 | |||||
Weighted average discount rate | 3.0 | % | 3.0 | % | |||
Right of use assets are included in “Other Assets” on the Consolidated Balance Sheets. Operating lease liabilities are included in “Other Liabilities” and Finance lease liabilities are included in “Long-term Borrowings” in the Consolidated Balance Sheets. During the years ended December 31, 2025, 2024 and 2023, the Corporation assumed lease liabilities to obtain right-of-use assets in operating leases and financing leases of $867,000, $2.73 million and $775,000, respectively.
Cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2025, 2024 and 2023 is set forth in the following table. In addition to the amounts paid shown below, the Corporation received lease incentives of $42,000 related to finance leases during the year ended December 31, 2024.
Year Ended December 31, |
| |||||||||
(Dollars in thousands) | | 2025 | | 2024 | | 2023 |
| |||
Operating leases: | ||||||||||
Operating cash flows | $ | 707 | $ | 832 | $ | 905 | ||||
Finance leases: | ||||||||||
Operating cash flows | 233 | 220 | 121 | |||||||
Financing cash flows | 327 | 233 | 220 | |||||||
Total | $ | 1,267 | $ | 1,285 | $ | 1,246 | ||||
Maturities of the Corporation’s lease liabilities are as follows:
December 31, 2025 | ||||||
(Dollars in thousands) | Operating Leases | Finance Leases | ||||
2026 | $ | 644 | $ | 525 | ||
2027 | 406 | 586 | ||||
2028 | 312 | 602 | ||||
2029 | 271 | 618 | ||||
2030 | 242 | 635 | ||||
Thereafter | 921 | 6,725 | ||||
Total |
| 2,796 |
| 9,691 | ||
Imputed interest |
| (320) |
| (1,849) | ||
Total | $ | 2,476 | $ | 7,842 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Mar 3, 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.