Esquire Financial Holdings, Inc. Leases Disclosure
NOTE 12 — Leases
The Company recognizes the present value of its operating lease payments related to its office facilities and retail branches as operating lease assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. These operating lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. As these leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date in order to determine present value.
Short-term lease payments, those leases with original terms of 12 months or less, are recognized in the Consolidated Statements of Income, on a straight-line basis over the lease term. Certain leases may include one or more options to renew. The exercise of lease renewal options is typically at the Company’s discretion and are included in the operating lease liability if it is reasonably certain that the renewal option will be exercised. Certain real estate leases may contain lease and non-lease components, such as common area maintenance charges, real estate taxes, and insurance, which are generally accounted for separately and are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not sublease any of its leased properties. The Company does not lease properties from any related parties.
As of December 31, 2025, right of use (“ROU”) lease and related lease were $2,091 and $2,641, respectively. As of December 31, 2024, ROU lease and related lease were $3,187 and $3,497 respectively. ROU assets are included within Other assets and related lease liabilities are included within Accrued expenses and other liabilities on the Consolidated Statements of Financial Condition.
As of December 31, 2025, the Company was obligated under several non-cancelable leases for certain premises and equipment. The minimum annual rental commitments, exclusive of taxes and other charges, under non-cancelable lease agreements for premises at December 31, 2025, are summarized as follows:
Operating Lease | |||
Liabilities | |||
2026 | $ | 988 | |
2027 |
| 240 | |
2028 |
| 248 | |
2029 |
| 255 | |
2030 |
| 263 | |
Thereafter |
| 1,129 | |
Total operating lease payments | 3,123 | ||
Less: interest | 482 | ||
Present value of operating lease liabilities | $ | 2,641 |
In addition to the table above, as of December 31, 2025, the Company had an additional future operating lease commitment for its future corporate headquarters of approximately $24,356 that has been executed but not yet commenced. This operating lease is expected to commence no earlier than the fourth quarter of 2026 with a lease term of 12.25 years.
December 31, | |||||||
2025 | 2024 | ||||||
Weighted-average remaining lease term | 6.73 | years | 6.30 | years | |||
Weighted-average discount rate | 4.42 | % | 4.27 | % | |||
The components of total lease cost are as follows:
Years Ended | ||||||||
December 31, | ||||||||
2025 | 2024 | 2023 | ||||||
Operating lease cost | $ | 890 | $ | 630 | $ | 630 | ||
Short-term lease cost | 114 | 128 | 219 | |||||
Total lease cost | $ | 1,004 | $ | 758 | $ | 849 | ||
Cash paid for operating leases | $ | 1,149 | $ | 911 | $ | 909 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 27, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 19, 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.