NOTE 6 — LEASES

The Company leases its corporate office, banking centers and loan production offices. The following tables present the Company’s lease cost and other information related to its operating leases (dollars in thousands):

At December 31, 

2025

2024

Supplemental balance sheet information:

Lease assets (classified in Other assets on the Consolidated Statement of Financial Condition)

$

44,994

$

47,619

Lease liabilities (classified in Other liabilities on the Consolidated Statement of Financial Condition)

$

49,337

$

51,910

Weighted average remaining lease term in years

 

14.4

 

15.2

Weighted average discount rate

 

4.77

%

 

4.73

%

At December 31, 

2025

2024

2023

Components of lease cost:

Operating lease cost (classified in Bank premises & equipment on the Consolidated Statement of Operations)

$

5,334

$

5,119

$

5,290

Supplemental cash flow information:

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash outflows from operating leases

$

5,283

$

5,012

$

5,191

Non-cash activity related to lease assets:

Lease assets obtained from new operating lease liabilities

$

388

$

9,197

$

2,036

The following table presents the remaining maturity of lease liabilities as well as the reconciliation of undiscounted lease payments to the discounted operating lease liabilities (in thousands):

At December 31, 

2025

2024

Lease liabilities maturing in:

2026

$

5,379

$

5,257

2027

 

5,003

 

5,274

2028

 

4,590

 

4,899

2029

 

4,577

 

4,486

2030

4,768

4,499

Thereafter

45,572

50,340

Total

$

69,889

$

74,755

Less: Present value discount

(20,552)

(22,845)

Total lease liabilities

$

49,337

$

51,910

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Feb 28, 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.