FIRST FINANCIAL BANCORP /OH/FFBC
FIRST FINANCIAL BANCORP /OH/ Leases Disclosure
Leases - Lessee
A lease is defined as a contract, or part of 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. For contracts where First Financial is a lessee, the recipient of the right to control, substantially all of those agreements are for real estate property for branches, ATM locations and office space.
Substantially all of the Company's leases are classified as operating leases. Under Accounting Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a ROU asset and a corresponding lease liability. The Company's right to use an asset over the life of a lease is recorded as a ROU asset in Accrued interest and other assets on the Consolidated Balance Sheet and was $ and $ at December 31, 2025 and 2024, respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. First Financial recorded a $58.1 million and $59.8 million lease liability in Accrued interest and other liabilities on the Consolidated Balance Sheets at December 31, 2025 and 2024, respectively.
The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.
Leases with an initial term of 12 months or less are not recorded on the balance sheet and First Financial recognizes lease expense for these leases on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or more. The exercise of renewal options on operating leases is at the Company's sole discretion, and certain leases may include options to purchase the leased property. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. First Financial does not enter into lease agreements which contain material residual value guarantees or material restrictive covenants.
Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements and leases generally also include real estate taxes and common area maintenance charges in the annual rental payments.
The components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Operating lease cost | $ | 7,993 | $ | 8,095 | $ | 7,773 | ||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Amortization of right-of-use assets | 101 | 110 | 110 | |||||||||||||||||
| Interest on lease liabilities | 52 | 58 | 62 | |||||||||||||||||
| Variable lease cost | 3,119 | 3,109 | 3,107 | |||||||||||||||||
| Total operating lease cost | $ | 11,265 | $ | 11,372 | $ | 11,052 | ||||||||||||||
Future minimum commitments due under these lease agreements as of December 31, 2025 are as follows:
| (Dollars in thousands) | Operating leases | Finance leases | ||||||||||||
| 2026 | $ | 9,103 | $ | 152 | ||||||||||
| 2027 | 8,643 | 154 | ||||||||||||
| 2028 | 8,347 | 159 | ||||||||||||
| 2029 | 7,776 | 160 | ||||||||||||
| 2030 | 7,421 | 111 | ||||||||||||
| Thereafter | 30,219 | 697 | ||||||||||||
| Total lease payments | 71,509 | 1,433 | ||||||||||||
| Less: imputed interest | (13,397) | (284) | ||||||||||||
| Total | $ | 58,112 | $ | 1,149 | ||||||||||
The weighted average lease term and discount rate for the Company's operating leases were as follows:
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||||||
| Operating leases | ||||||||||||||||||||
| $ | 48,647 | $ | 49,895 | $ | 54,233 | |||||||||||||||
| 58,112 | 59,801 | 64,484 | ||||||||||||||||||
| Finance leases | ||||||||||||||||||||
| Premises and equipment | 910 | 1,284 | 1,394 | |||||||||||||||||
| 1,149 | 1,520 | 1,611 | ||||||||||||||||||
| Weighted-average remaining lease term | ||||||||||||||||||||
| Operating leases | 10.7 years | 11.5 years | 12.3 years | |||||||||||||||||
| Finance leases | 10.2 years | 11.8 years | 12.8 years | |||||||||||||||||
| Weighted-average discount rate | ||||||||||||||||||||
| Operating leases | 3.53 | % | 3.48 | % | 3.43 | % | ||||||||||||||
| Finance leases | 4.42 | % | 3.85 | % | 3.84 | % | ||||||||||||||
Supplemental cash information at year end related to leases was as follows:
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 8,520 | $ | 8,441 | $ | 7,819 | ||||||||||||||
| Operating cash flows from finance leases | 52 | 58 | 62 | |||||||||||||||||
| Financing cash flows from finance leases | 99 | 91 | 87 | |||||||||||||||||
| ROU assets obtained in exchange for lease obligations | ||||||||||||||||||||
| Operating leases | 4,749 | 1,552 | 6,585 | |||||||||||||||||
| Finance leases | (272) | 0 | 0 | |||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 23, 2016 | |
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.