FS Bancorp, Inc. Leases Disclosure
NOTE 6 – LEASES
The Company has operating leases for retail bank and home lending branches, loan production offices, and certain equipment. At December 31, 2025, these leases have remaining terms ranging from months to years and seven months, with some including options to extend for up to years.
The components of lease cost (included in occupancy expense on the Consolidated Statements of Income) for the years indicated are as follows:
| For the Year Ended December 31, | ||||||||||||
| Lease cost: | 2025 | 2024 | 2023 | |||||||||
| Operating lease cost | $ | 1,869 | $ | 1,896 | $ | 1,837 | ||||||
| Short-term lease cost | 28 | 10 | 19 | |||||||||
| Total lease cost | $ | 1,897 | $ | 1,906 | $ | 1,856 | ||||||
The following table provides supplemental information related to operating leases at or for the years indicated:
| At or For the Year Ended December 31, | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | 2025 | 2024 | ||||||
| Operating cash flows from operating leases | $ | 1,900 | $ | 1,950 | ||||
| Weighted average remaining lease term- operating leases (in years) | 5.0 | 3.5 | ||||||
| Weighted average discount rate- operating leases | 3.84 | % | 3.14 | % | ||||
The Company’s leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the discount rate used in determining the lease liability for each individual lease was the FHLB of Des Moines’ fixed advance rate.
Maturities of operating lease liabilities at December 31, 2025 for future periods are as follows:
| 2026 | $ | 1,986 | ||
| 2027 | 1,729 | |||
| 2028 | 1,110 | |||
| 2029 | 947 | |||
| 2030 | 678 | |||
| Thereafter | 1,254 | |||
| Total lease payments | 7,704 | |||
| Less imputed interest | (1,815 | ) | ||
| Total | $ | 5,889 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 16, 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.