Lease Commitments
Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term.
| | | | | | | | | | | |
| 2025 | | 2024 |
| ROU asset on leased property, gross | $ | 44,376 | | | $ | 38,779 | |
| Accumulated amortization | (17,120) | | | (16,303) | |
| $ | 27,256 | | | $ | 22,476 | |
| $ | 29,049 | | | $ | 24,376 | |
The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of December 31, 2025:
| | | | | |
| |
| 2026 | $ | 8,000 | |
| 2027 | 6,159 | |
| 2028 | 5,810 | |
| 2029 | 4,930 | |
| 2030 | 3,213 | |
| Thereafter | 3,851 | |
| Total undiscounted operating lease liability | 31,963 | |
| Imputed interest | 2,914 | |
| Total operating lease liability included in the accompanying balance sheet | $ | 29,049 | |
| Weighted Average Remaining Life - Operating Leases (years) | 5.09 |
| Weighted Average Rate - Operating Leases | 3.52 | % |
The components of total lease expense was as follows for the years ended December 31,:
| | | | | | | | | | | | | |
| 2025 | | 2024 | | |
| Operating leases | $ | 7,960 | | | $ | 7,422 | | | |
| Short-term leases | 331 | | | 395 | | | |
| | | | | |
| Sublease income | (181) | | | (188) | | | |
| Net lease expense | $ | 8,110 | | | $ | 7,629 | | | |
Total lease expense for the year ended December 31, 2023 was $7,670.
We do not currently have any significant finance leases in which we are the lessee, material related-party leases, leases containing residual value guarantees or restrictive covenants.
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.