Leases
Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within our Consolidated Statements of Income were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | For the years ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating lease costs (office operations) | | $ | 7,360 | | | 6,902 | | 6,529 |
| Variable lease costs (office operations) | | 1,184 | | | 716 | | 863 |
| Total operating lease costs | | $ | 8,544 | | | 7,618 | | 7,392 |
Amounts reported in the Consolidated Statements of Financial Condition were as follows: | | | | | | | | | | | | | | |
| | For the years ended December 31, |
| | 2025 | | 2024 |
| Operating leases: | | | | |
| Operating lease ROU assets (other assets) | | $ | 44,909 | | | 46,204 |
| Operating lease liabilities (other liabilities) | | 50,451 | | | 49,973 | |
Other information related to leases were as follows: | | | | | | | | | | | | | | |
| | For the years ended December 31, |
| | 2025 | | 2024 |
| Supplemental cash flow information | | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | |
| Operating cash flow from operating leases | | $ | 6,575 | | | 6,182 |
| ROU assets obtained in exchange for lease obligations | | 4,534 | | 1,002 |
| Weighted average remaining lease term | | 11.6 years | | 12.9 years |
| Weighted average discount rate | | 4.6 | % | | 4.6 | % |
Amounts disclosed for ROU assets obtained in exchange for lease obligations include amounts added to the carrying amount of ROU assets resulting from lease modifications and reassessments.
Maturities of lease liabilities by fiscal year for our operating leases are as follows: | | | | | | | | |
| | As of December 31, 2025 |
| 2026 | | $ | 6,410 | |
| 2027 | | 6,197 | |
| 2028 | | 6,081 | |
| 2029 | | 5,302 | |
| 2030 | | 4,815 | |
| Thereafter | | 38,409 | |
| Total lease payments | | 67,214 | |
| Less amount of lease payments representing interest | | 16,763 | |
| Total present value of lease payments | | $ | 50,451 | |
Rental expense for the years ended December 31, 2025, 2024 and 2023 was $9 million, $8 million and $7 million, respectively.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.