Leases

The Company’s leases primarily relate to real estate property for branches and office space with terms extending from two months up to 31.5 years. At December 31, 2024, all of the Company's leases are classified as operating leases, which are required to be recognized on the consolidated balance sheets as a right-of-use asset and a corresponding lease liability.

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheets. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recorded at the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate, at lease inception, over a similar term in determining the present value of lease payments. Certain leases include options to renew, with one or more renewal terms ranging from five to ten years. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the right-of-use asset and lease liability.

At December 31, 2024, the Company’s operating lease right-of-use assets and operating lease liabilities included on the consolidated balance sheet were $27.8 million and $32.2 million, respectively. At December 31, 2023, the Company’s operating lease right-of-use assets and operating lease liabilities included on the consolidated balance sheet were $30.2 million and $35.2 million, respectively. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense on the consolidated statements of comprehensive income.

Supplemental lease information at or for the years ended December 31, 2024, 2023, and 2022 is as follows (dollars in thousands):


	At or for the Year Ended
	December 31, 2024			December 31, 2023			December 31, 2022
Operating lease cost	$	5,846		$	6,037		$	6,006
Variable lease cost	3,776			3,844			3,621
Net lease cost	$	9,622		$	9,881		$	9,627
Cash paid for amounts included in measurement of operating lease liabilities	$	6,406		$	6,487		$	6,350
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,227		$	645		$	4,983
Weighted average remaining lease term (in years)	10.80 years			11.09 years			11.22 years
Weighted average discount rate	3.69		%	3.60		%	3.54		%

The following table summarizes lease payment obligations for each of the next five years and thereafter in addition to a reconcilement to the Company's current lease liability (dollars in thousands):


Year	Amount
2025	$	6,199
2026	5,440
2027	4,483
2028	4,221
2029	2,753
Thereafter	17,258
Total lease payments	40,354
Less: imputed interest	(8,145)
Present value of lease liabilities	$	32,209

Net rental expense included in occupancy expense was approximately $6.0 million, $6.0 million, and $6.1 million for the years ended December 31, 2024, 2023, and 2022, respectively.

As of December 31, 2024, the Company had not entered into any leases that have not yet commenced.

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.

Northfield Bancorp, Inc. Leases Disclosure

About Leases Disclosures

Other Available Disclosures