FARMERS NATIONAL BANC CORP /OH/ Leases Disclosure
NOTE 9 – LEASES
The Company has operating leases for branch office locations, vehicles and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.6 years, some of which include options to extend the lease for up to 15 years, while other leases have the option to terminate in May of 2026.
The right of use asset and lease liability were $7.9 million and $8.2 million as of December 31, 2025, respectively, and $9.7 million and $9.9 million as of December 31, 2024, respectively. The right of use asset is included in and the lease liability is included in on the balance sheet.
Lease expense for the years ended December 31, 2025, 2024 and 2023 was $1.4 million, $1.4 million and $1.2 million, respectively. The weighted-average remaining lease term for all leases was 8.61 and 9.97 years as of December 31, 2025 and 2024. The weighted-average discount rate was 3.53% and 3.33% for all leases as of December 31, 2025 and 2024.
Maturities of lease liabilities are as follows as of December 31, 2025:
| 2026 | $ | 1,380 | ||
| 2027 | 1,248 | |||
| 2028 | 1,190 | |||
| 2029 | 1,076 | |||
| 2030 | 922 | |||
| Thereafter | 3,869 | |||
| Total Payments | 9,685 | |||
| Less: Imputed Interest | (1,462 | ) | ||
| Total | $ | 8,223 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Mar 5, 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.