FINANCIAL INSTITUTIONS INC Leases Disclosure
(7.) LEASES
The Company is obligated under a number of non-cancellable operating lease agreements for land, buildings, and equipment with terms, including renewal options reasonably certain to be exercised, extending through 2061. There were no residual value guarantees, restrictions, or covenants imposed by leases.
The following table represents the consolidated statements of financial condition classification of the Company’s right of use assets and lease liabilities as of December 31 (in thousands):
|
|
Balance Sheet Location |
|
2025 |
|
|
2024 |
|
||
Operating Lease Right of Use Assets: |
|
|
|
|
|
|
|
|
||
Gross carrying amount |
|
Other assets |
|
$ |
40,329 |
|
|
$ |
39,343 |
|
Accumulated amortization |
|
Other assets |
|
|
(11,263 |
) |
|
|
(8,974 |
) |
|
|
|
$ |
29,066 |
|
|
$ |
30,369 |
|
|
|
|
|
|
|
|
|
|
|
||
Operating Lease Liabilities: |
|
|
|
|
|
|
|
|
||
|
Other liabilities |
|
$ |
31,575 |
|
|
$ |
32,763 |
|
|
The weighted average remaining lease term for operating leases was 21.2 years at December 31, 2025 and the weighted-average discount rate used in the measurement of operating lease liabilities was 4.39%.
The following table represents components of lease costs, primarily included in occupancy and equipment expenses on the consolidated statement of operations, and other cash flow information for the years ended December 31 (in thousands):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Lease Costs: |
|
|
|
|
|
|
|
|
|
|||
Operating lease costs |
|
$ |
3,120 |
|
|
$ |
3,108 |
|
|
$ |
3,082 |
|
Variable lease costs (1) |
|
|
464 |
|
|
|
421 |
|
|
|
405 |
|
Short-term lease costs |
|
|
15 |
|
|
|
12 |
|
|
|
1 |
|
Net lease costs |
|
$ |
3,599 |
|
|
$ |
3,541 |
|
|
$ |
3,488 |
|
|
|
|
|
|
|
|
|
|
|
|||
Other information: |
|
|
|
|
|
|
|
|
|
|||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|||
Operating cash flows from operating leases |
|
$ |
3,028 |
|
|
$ |
3,020 |
|
|
$ |
2,963 |
|
Right of use assets obtained in exchange for new operating lease liabilities |
|
$ |
1,030 |
|
|
$ |
694 |
|
|
$ |
2,249 |
|
(7.) LEASES (Continued)
Future minimum payments under non-cancellable operating leases with initial or remaining terms of one year or more are as follows at December 31, 2025 (in thousands):
|
|
Amount |
|
|
2025 |
|
$ |
3,066 |
|
2026 |
|
|
2,982 |
|
2027 |
|
|
2,658 |
|
2028 |
|
|
2,357 |
|
2029 |
|
|
2,253 |
|
Thereafter |
|
|
37,291 |
|
Total future minimum operating lease payments |
|
|
50,607 |
|
Amounts representing interest |
|
|
(19,032 |
) |
Present value of net future minimum operating lease payments |
|
$ |
31,575 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 4, 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.