John Marshall Bancorp, Inc. Leases Disclosure
Note 8— Leases
Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.
The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations.
The following table presents an overview of the Company’s leases as of December 31, 2025 and December 31, 2024.
Table 8.1: Leases Overview
(Dollars in thousands) | | December 31, 2025 | | December 31, 2024 |
| ||
Lease liabilities | $ | 4,819 | $ | 5,369 | |||
Right-of-use assets |
| 4,551 |
| 5,013 | |||
Weighted average remaining lease term (Years) |
| 4.26 | years |
| 4.94 | years | |
Weighted average discount rate |
| 4.15 | % |
| 4.13 | % | |
The following table presents a composition of the Company’s lease costs for the years ended December 31, 2025 and December 31, 2024.
Table 8.2: Cost of Leases
(Dollars in thousands) | | December 31, 2025 | | December 31, 2024 | ||
Operating lease cost | $ | 1,165 | $ | 1,360 | ||
Variable lease cost |
| — |
| — | ||
Short-term lease cost |
| — |
| — | ||
Total Lease Cost | $ | 1,165 | $ | 1,360 | ||
The total cash paid for amounts included in the measurement of lease liabilities totaled $1.3 million for each of the years ended December 31, 2025 and December 31, 2024.
The following table is a maturity schedule of the Company’s future lease payments and reconciles the undiscounted total obligation to the total recorded lease liabilities as of December 31, 2025.
Table 8.3: Lease Maturity Schedule
(Dollars in thousands) | | December 31, 2025 | |
2026 | $ | 1,303 | |
2027 |
| 1,262 | |
2028 |
| 1,159 | |
2029 |
| 1,118 | |
2030 |
| 350 | |
Thereafter |
| 80 | |
Total Undiscounted Cash Flows | $ | 5,272 | |
Discount |
| (453) | |
Lease Liabilities | $ | 4,819 | |
Total rent expense, including building expenses and real estate taxes for certain locations, amounted to $1.2 million and $1.4 million for the years ended December 31, 2025 and 2024, respectively. Rental expenses are classified as a component of the occupancy expense of premises line item in the Consolidated Statements of Income.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 23, 2023 | |
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.