OCEANFIRST FINANCIAL CORPOCFC

OCEANFIRST FINANCIAL CORP Leases Disclosure

10-KFiled Feb 27, 20262 min read
Leases
A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which has a lease term through 2029.
The following table represents the classification of the Company’s ROU assets and lease liabilities on the Consolidated Statements of Financial Condition (in thousands):
December 31, 2025December 31, 2024
Lease ROU Assets
Classification
Operating lease ROU assets
Other assets$17,596 $15,452 
Finance lease ROU asset
Premises and equipment, net838 1,071 
Total lease ROU assets
$18,434 $16,523 
Lease Liabilities
Operating lease liabilities (1)
Other liabilities$19,037 $17,114 
Finance lease liabilityOther borrowings1,143 1,421 
Total lease liabilities$20,180 $18,535 
(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $897,000 and $4.4 million as of December 31, 2025 and 2024, respectively.
The following table represents the weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases:
December 31, 2025December 31, 2024
Weighted-Average Remaining Lease Term
Operating leases5.82 years5.84 years
Finance lease3.59 years4.59 years
Weighted-Average Discount Rate
Operating leases3.57 %3.08 %
Finance lease5.63 5.63 
The following table represents lease expenses and other lease information (in thousands):
For the Year Ended December 31,
202520242023
Lease Expense
Operating lease expense$5,016 $4,586 $4,634 
Finance lease expense:
Amortization of ROU assets
233 233 228 
Interest on lease liabilities (1)
71 86 101 
Total$5,320 $4,905 $4,963 
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,242 $4,773 $4,571 
Operating cash flows from finance leases71 86 101 
Financing cash flows from finance leases279 264 249 
(1)Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income.
Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):
Finance LeaseOperating Leases
For the Year Ending December 31,
2026$350 $5,253 
2027350 4,154 
2028350 2,977 
2029209 2,701 
2030— 2,146 
Thereafter— 4,038 
Total1,259 21,269 
Less: Imputed interest(116)(2,232)
Total lease liabilities$1,143 $19,037 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Feb 28, 2020

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.

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