EAGLE BANCORP INCEGBN

EAGLE BANCORP INC Leases Disclosure

10-KFiled Mar 9, 20263 min read
Note 6 – Leases
The Company accounts for leases in accordance with ASC Topic 842. A lease is defined as a contract that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Substantially all of the leases in which the Company is the lessee comprise real estate for branch offices, ATM locations and corporate office space. Substantially all of our leases are classified as operating leases and are included in operating lease right-of-use ("ROU") assets and operating lease liabilities in the Consolidated Balance Sheet.
ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In determining the present value of the lease payments, we use the implicit lease rate if available. If the implicit lease rate is not available, we use the incremental borrowing rate at commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment.
As of December 31, 2025 and December 31, 2024, the Company had $28.5 million and $18.5 million of operating lease ROU assets respectively, and $35.3 million and $23.8 million of operating lease liabilities respectively, on the Company’s Consolidated Balance Sheet. The Company elects not to recognize ROU assets and operating lease liabilities arising from short-term leases, leases with initial terms of twelve months or less or equipment leases (deemed immaterial) on the Consolidated Balance Sheet.
The leases contain options to extend or terminate the lease, which are recognized as part of the ROU assets and lease liabilities when an economic benefit to exercise the option exists and there is a 90% probability that the Company will exercise the option. If these criteria are not met, the options are not included in our ROU assets and operating lease liabilities.
As of December 31, 2025, our leases do not contain material residual value guarantees or impose restrictions or covenants related to dividends or the Company’s ability to incur additional financial obligations.
On January 1, 2025, the Company commenced a new lease for its new headquarters at 7500 Old Georgetown Road in downtown Bethesda, MD. The lease expires on July 31, 2037.
The tables below present lease costs and other lease information.
For the Year Ended December 31,
(dollars in thousands)20252024
Lease cost:
Operating lease cost (cost resulting from lease payments)$7,272 $6,124 
Variable lease cost (cost excluded from lease payments)521 694 
Sublease income— (40)
Net lease cost$7,793 $6,778 
Operating lease - operating cash flows (fixed payments)$5,789 $6,524 
As of December 31,
(dollars in thousands)20252024
Right-of-use assets - operating leases$28,451$18,494
Operating lease liabilities$35,256$23,815
Weighted average lease term - operating leases (in years)9.126.78
Weighted average discount rate - operating leases3.60%3.03%
The table below presents the future minimum payments for operating leases with initial or remaining terms of one year or more.
(dollars in thousands)
As of December 31, 2025
Twelve months ended:  
December 31, 2026$4,728 
December 31, 20274,924 
December 31, 20284,877 
December 31, 20294,441 
December 31, 20303,867 
Thereafter19,415 
Total future minimum lease payments42,252 
Amounts representing interest(6,996)
Present value of net future minimum lease payments$35,256 

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 1, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew Standards