Leases
The Company leases buildings mainly for bank branches and office space from nonaffiliated parties with lease terms of 1 to 10 years as of December 31, 2025. Certain lease arrangements have optional extensions of about 5 years, but these are not included in the lease term unless reasonably certain.

The table below summarizes total lease cost for the periods indicated:
Year Ended December 31,
($ in thousands)202520242023
Operating lease cost$2,479 $2,352 $2,280 
Variable lease cost638 985 844 
Total lease cost$3,117 $3,337 $3,124 
The tables below summarize other information related to the Company’s operating leases as of the associated period:
As of and For Year Ended December 31,
($ in thousands)202520242023
Operating right-of-use assets$8,804 $7,415 $8,497 
Operating lease liabilities11,175 7,857 9,341 
Weighted average remaining lease term - operating leases4.5 years4.7 years5.5 years
Weighted average discount rate - operating leases2.97 %2.45 %2.47 %
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$560 $2,751 $2,511 
Rent expense was $3.1 million, $3.3 million and $3.1 million for the years ended December 31, 2025 and 2024 and 2023, respectively.

The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the Consolidated Balance Sheets as of December 31, 2025:
($ in thousands)
Amount
2026$3,038 
20272,930 
20282,510 
20292,169 
2030640 
Thereafter819 
Total lease payments12,106 
Discount to present value(931)
Total lease liability$11,175 
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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 28, 2025
2022Mar 16, 2023
2021Mar 18, 2022

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.