LINKBANCORP, Inc. Leases Disclosure
6. LEASE COMMITMENTS
The Company enters into leases in the normal course of business. The Company leases its administration and operations facility and 15 solutions centers under lease agreements with remaining terms ranging from less than one year to 15 years. Certain leases include renewal options to extend for up to seventeen years.
Right-of-use assets and lease liabilities by lease type are as follows:
(In Thousands) |
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Right-of-Use Asset |
|
|
|
|
|
|
||
|
$ |
15,225 |
|
|
$ |
14,039 |
|
|
|
|
— |
|
|
|
874 |
|
|
Total Right-of-Use Asset |
|
$ |
15,225 |
|
|
$ |
14,913 |
|
|
|
|
|
|
|
|
||
Lease Liabilities |
|
|
|
|
|
|
||
|
$ |
15,564 |
|
|
$ |
14,412 |
|
|
|
|
— |
|
|
|
1,254 |
|
|
Total lease liabilities |
|
$ |
15,564 |
|
|
$ |
15,666 |
|
The amounts included above are not inclusive of right-of-use asset and lease liabilities reclassified as held for sale as of December 31, 2025 and 2024. At December 31, 2025 and 2024, right-of-use assets included within assets held for sale were $0 and $231, respectively. At December 31, 2025 and 2024, lease liabilities included within liabilities held for sale were $0 and $223, respectively.
The components of total lease cost were as follows.
(In Thousands) |
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
Finance lease cost |
|
|
|
|
|
|
||
Right-of-Use amortization |
|
$ |
29 |
|
|
$ |
88 |
|
Interest expense |
|
|
11 |
|
|
|
34 |
|
Operating lease cost |
|
|
2,457 |
|
|
|
2,334 |
|
Total lease cost |
|
$ |
2,497 |
|
|
$ |
2,456 |
|
The following table presents information associated with our obligations under leases for the years ended December 31, 2025 and 2024:
|
|
2025 |
|
|
2024 |
|
||
Finance lease weighted-average remaining term (years) |
|
$ |
— |
|
|
$ |
9.92 |
|
Finance lease weighted-average discount rate |
|
|
0.00 |
% |
|
|
2.59 |
% |
|
|
|
|
|
|
|
||
Operating lease weighted-average remaining term (years) |
|
|
8.15 |
|
|
|
9.01 |
|
Operating lease weighted-average discount rate |
|
|
5.20 |
% |
|
|
4.47 |
% |
The following table presents the undiscounted cash flows due related to operating and finance leases as of December 31, 2025:
(In Thousands) |
|
Operating Lease |
|
|
2026 |
|
$ |
2,464 |
|
2027 |
|
|
2,420 |
|
2028 |
|
|
2,279 |
|
2029 |
|
|
2,287 |
|
2030 and thereafter |
|
|
9,918 |
|
Total Undiscounted Cash Flows |
|
$ |
19,368 |
|
Discount on Cash Flows |
|
|
(3,804 |
) |
Total lease liabilities |
|
$ |
15,564 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 30, 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.