FLUSHING FINANCIAL CORP Leases Disclosure
15. Leases
The Company has 33 operating leases for branches (including headquarters) and office spaces, and one operating lease for equipment. Our leases have remaining lease terms ranging from ten months to approximately 11 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term.
The Company has elected the short-term lease recognition exemption such that the Company will not recognize ROU assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has one agreement in 2025 and two agreements in 2024 that qualified as short-term leases.
Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable Operating lease agreements expire through 2036.
Supplemental information related to leases was as follows:
(Dollars in thousands) | December 31, 2025 | December 31, 2024 | ||||
Operating lease ROU assets | $ | 53,118 | $ | 45,800 | ||
Operating lease liabilities | $ | 53,842 | $ | 46,443 | ||
Weighted-average remaining lease term-operating leases | 7.2 years | 7.3 years | ||||
Weighted average discount rate-operating leases | 4.4% | 4.0% | ||||
The components of lease expense and cash flow information related to leases were as follows:
For the years ended December 31, | |||||||||||
(In thousands) | Line Item Presented | 2025 | 2024 | 2023 | |||||||
Lease Cost |
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Operating lease cost | Occupancy and equipment | $ | 9,723 | $ | 9,100 | $ | 8,737 | ||||
Operating lease cost | Other operating expenses | 16 | 65 | 89 | |||||||
Short-term lease cost | Professional services and other operating expenses |
| 193 |
| 137 |
| 212 | ||||
Variable lease cost | Occupancy and equipment |
| 1,287 |
| 1,247 |
| 1,128 | ||||
Total lease cost | $ | 11,219 | $ | 10,549 | $ | 10,166 | |||||
Other information |
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows from operating leases | $ | 9,745 | $ | 9,835 | $ | 10,429 | |||||
Supplemental disclosure of non-cash activities: | |||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 15,400 | $ | 13,806 | $ | 3,866 | |||||
The Company’s minimum annual rental payments at December 31, 2025 for Bank facilities due under non-cancelable leases are as follows:
Minimum Rental | |||
(In thousands) | |||
Years ended December 31: | |||
2026 | $ | 9,227 | |
2027 | 10,023 | ||
2028 | 9,895 | ||
2029 | 8,699 | ||
2030 | 5,327 | ||
Thereafter | 20,538 | ||
Total minimum payments required | 63,709 | ||
Less: implied interest | (9,867) | ||
Total lease obligations | $ | 53,842 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 2, 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.