Eastern Bankshares, Inc.EBC
Eastern Bankshares, Inc. Leases Disclosure
Leases
The Company leases certain office space and equipment under various non-cancelable operating leases. These leases have original terms ranging from 1 year to 24 years. Operating lease liabilities and ROU assets are recognized at the lease commencement date based upon the present value of the future minimum lease payments over the lease term. Operating lease liabilities are recorded within other liabilities and ROU assets are recorded within other assets in the Company’s Consolidated Balance Sheets. The information presented within this Note excludes discontinued operations with regard to information pertaining to the year ended December 31, 2023. Refer to Note 24, “Discontinued Operations” for further discussion regarding discontinued operations.
As of the dates indicated, the Company had the following related to operating leases:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||
| (In thousands) | |||||||||||
| $ | 74,094 | $ | 68,393 | ||||||||
| 97,896 | 81,901 | ||||||||||
Finance leases are not material. Finance lease liabilities are recorded within other liabilities and finance ROU assets are recorded within other assets in the Company’s Consolidated Balance Sheets.
The following table is a summary of the Company’s components of net lease cost for the periods indicated:
| For the Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Operating lease cost | $ | 19,831 | $ | 13,295 | $ | 12,439 | |||||||||||
| Finance lease cost | 474 | 468 | 338 | ||||||||||||||
| Variable lease cost | 3,156 | 3,017 | 2,766 | ||||||||||||||
| Total lease cost | $ | 23,461 | $ | 16,780 | $ | 15,543 | |||||||||||
During the years ended December 31, 2025, 2024, and 2023 the Company made $16.2 million, $16.3 million, and $13.3 million in cash payments for operating and finance leases, respectively.
Supplemental balance sheet information related to operating leases as of the dates indicated is as follows:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||
| Weighted-average remaining lease term (in years) | 7.85 | 7.54 | |||||||||
| Weighted-average discount rate | 4.35 | % | 4.08 | % | |||||||
The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding as of December 31, 2025 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s Consolidated Balance Sheets:
| As of December 31, 2025 | |||||
| Year | (In thousands) | ||||
| 2026 | $ | 16,876 | |||
| 2027 | 16,700 | ||||
| 2028 | 16,102 | ||||
| 2029 | 14,034 | ||||
| 2030 | 12,503 | ||||
| Thereafter | 41,327 | ||||
| Total minimum lease payments | 117,542 | ||||
| Less: amount representing interest | 19,646 | ||||
| Present value of future minimum lease payments | $ | 97,896 | |||
Lease Modifications and Terminations:
During the year ended December 31, 2025, management determined not to exercise future lease term extension options related to three leases, which had previously been included in its determination of future lease payments, to exercise future lease term extension options related to six leases, which had not previously been included in its determination of future lease payments, and to terminate two leases. Accordingly, the Company remeasured the present value of the future lease payments related to such leases which resulted in a net increase of the lease liabilities and a corresponding net increase of the lease ROU assets of $2.4 million. The Company recorded an impairment charge of $3.5 million related to one lease acquired in connection with the Company’s merger with Cambridge.
During the year ended December 31, 2024, management determined not to exercise a future lease term extension option related to one lease, which had previously been included in its determination of future lease payments, to exercise future lease term extension options related to eleven leases, which had not previously been included in its determination of future lease payments, and to terminate eight leases. Accordingly, the Company remeasured the present value of the future lease payments related to such leases which resulted in a net increase of the lease liabilities and a corresponding net increase of the lease ROU assets of $5.5 million. In connection with the lease terminations, the Company recorded an impairment charge of $4.7 million.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 29, 2021 | |
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.