Leases
The Company leases certain land, premises and equipment from third parties. The following table summarizes the Company’s leases:
December 31, 2025December 31, 2024
(Dollars in thousands)Finance
Leases
Operating
Leases
Finance
Leases
Operating
Leases
ROU assets$42,353 31,022 
Accumulated depreciation(15,332)(11,056)
Net ROU assets$27,021 48,553 19,966 36,286 
Lease liabilities$28,808 52,869 21,279 39,902 
Weighted-average remaining lease term9 years13 years11 years15 years
Weighted-average discount rate3.9 %3.9 %3.6 %3.7 %

Maturities of lease liabilities consist of the following:
December 31, 2025
(Dollars in thousands)Finance
Leases
Operating
Leases
Maturing within one year$5,597 7,848 
Maturing one year through two years5,598 7,692 
Maturing two years through three years5,608 6,464 
Maturing three years through four years5,616 5,562 
Maturing four years through five years1,701 4,927 
Thereafter10,010 36,945 
Total lease payments34,130 69,438 
Present value of lease payments
Short-term4,591 5,931 
Long-term24,217 46,938 
Total present value of lease payments28,808 52,869 
Difference between lease payments and present value of lease payments$5,322 16,569 
The components of lease expense included in other expense on the consolidated statements of operations consist of the following:

Year ended
(Dollars in thousands)December 31,
2025
December 31,
2024
Finance lease cost
Amortization of ROU assets4,539 4,364 
Interest on lease liabilities1,094 844 
Operating lease cost7,110 5,204 
Short-term lease cost599 481 
Variable lease cost2,394 1,706 
Sublease income(89)(44)
Total lease expense15,647 12,555 

Supplemental cash flow information related to leases is as follows:
Year ended
December 31, 2025December 31, 2024
(Dollars in thousands)Finance
Leases
Operating
Leases
Finance
Leases
Operating
Leases
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows$1,094 5,756 844 3,418 
Financing cash flows4,050 N/A3,852 N/A
______________________________
N/A - Not applicable
The Company also leases office space to third parties through operating leases. Rent income from these leases for the year ended December 31, 2025 and 2024 was $1,849,000 and $1,592,000, respectively, and is recorded in other income within non-interest income.

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.