CIVISTA BANCSHARES, INC. Leases Disclosure
NOTE 25 - LEASES
We have operating leases for several branch locations and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. We also lease certain office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease (e.g., common-area or other maintenance costs) components. The Company accounts for each component separately based on the standalone price of each component. In addition, we have several operating leases with lease terms of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our right-of-use ("ROU") assets and lease liabilities.
Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion. Renewals to extend the lease terms are only included in our ROU assets and lease liabilities when it is reasonably certain they will be exercised.
As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments.
The balance sheet information related to our operating leases was as follows as of December 31, 2025 and 2024:
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Classification on the Consolidated Balance Sheet |
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December 31, 2025 |
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December 31, 2024 |
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Assets: |
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Operating lease |
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|
$ |
2,387 |
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|
$ |
1,063 |
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Liabilities: |
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|
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||
Operating lease |
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|
$ |
2,387 |
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|
$ |
1,063 |
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|
The cost components of our operating leases were as follows for the periods ended December 31, 2025, 2024 and 2023:
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December 31, 2025 |
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December 31, 2024 |
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December 31, 2023 |
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Lease cost |
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Operating lease cost |
|
$ |
816 |
|
|
$ |
631 |
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|
$ |
499 |
|
Short-term lease cost |
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|
40 |
|
|
|
220 |
|
|
|
160 |
|
Sublease income |
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|
(28 |
) |
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|
(28 |
) |
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|
(26 |
) |
Total lease cost |
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$ |
828 |
|
|
$ |
823 |
|
|
$ |
633 |
|
Maturities of our lease liabilities for all operating leases for each of the next five years and thereafter is as follows:
2026 |
|
$ |
754 |
|
2027 |
|
|
740 |
|
2028 |
|
|
584 |
|
2029 |
|
|
395 |
|
2030 |
|
|
78 |
|
Thereafter |
|
|
— |
|
Total lease payments |
|
$ |
2,551 |
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Less: Imputed Interest |
|
|
164 |
|
Present value of lease liabilities |
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$ |
2,387 |
|
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of December 31, 2025:
Weighted-average remaining lease term - operating leases (years) |
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|
3.40 |
|
Weighted-average discount rate - operating leases |
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|
3.88 |
% |
The Company is the lessor of equipment under operating leases to a wide variety of customers, from commercial and industrial to government and healthcare. The operating lease assets are presented on the balance sheet as Premises and equipment. The Company records lease revenue over the term of the lease and retains ownership of the related assets which are depreciated over the estimated useful life, normally to six years.
The Company also leases equipment to customers under direct financing leases. At the inception of each lease, the lease receivables, together with the present value of the estimated unguaranteed residual values are presented on the balance sheet as Loans. The excess of the lease receivables and residual values over the cost of the equipment is recorded as unearned lease income and will be recognized over the lease term, normally to six years as well.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 15, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 16, 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.