(6) Leases. The Company’s operating lease obligation includes a headquarter office and three branch locations as of December 31, 2025. During 2025, the Company entered into two additional operating lease agreements related to its headquarters facilities. The Company’s leases have a weighted-average remaining lease term of approximately 6.8 years. The components of lease expense and other lease information are as follows:

 Schedule of Components of Lease Cost

       
   For the year ended December 31, 
   2025   2024 
(dollars in thousands)        
Operating lease cost  $463   $370 
Cash paid for amounts included in measurement of lease liabilities  $427   $334 

 

  

At

December 31, 2025

  

At

December 31, 2024

 
(dollars in thousands)        
Operating lease right-of-use assets  $2,617   $2,679 
Operating lease liabilities  $2,745   $2,774 
Weighted-average remaining lease term   6.8 years    7.8 years  
Weighted-average discount rate   4.0%   4.9%

 

(continued)

 

 

OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARIES

 

Notes to Consolidated Financial Statements

 

(6) Leases, Continued.

 

Future minimum lease payments under non-cancellable leases, reconciled to our discounted operating lease liabilities are as follows (in thousands):

 

  

At

December 31, 2025

 
(dollars in thousands)    
2026  $499 
2027   534 
2028   543 
2029   463 
2030   268 
Thereafter   828 
Total future minimum lease payments   3,135 
Less imputed interest   (390)
Total operating lease liability  $2,745 

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 26, 2025
2023Mar 8, 2024
2022Mar 6, 2023
2021Mar 8, 2022
2020Mar 25, 2021
2019Mar 25, 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.