Ponce Financial Group, Inc. Leases Disclosure
Note 7. Leases
The Company has 16 and 17 operating leases for branches (including headquarters) and office spaces at December 31, 2025 and 2024, respectively and six operating leases for equipment at both December 31, 2025 and 2024. Our leases have remaining lease terms ranging from less than one year to approximately 14.1 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of lease term. Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2040.
Supplemental balance sheet information related to leases was as follows:
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December 31, |
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|
|
2025 |
|
|
2024 |
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||
|
|
(Dollars in thousands) |
|
|||||
Operating lease ROU assets |
|
$ |
27,583 |
|
|
$ |
29,093 |
|
Operating lease liabilities |
|
|
29,353 |
|
|
|
30,696 |
|
Weighted-average remaining lease term-operating leases |
|
11.2 years |
|
|
12.0 years |
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||
Weighted average discount rate-operating leases |
|
|
5.1 |
% |
|
|
5.1 |
% |
The components of lease expense and cash flow information related to leases were as follows:
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|
|
For the Years Ended December 31, |
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|
|
|
2025 |
|
|
2024 |
|
|
2023 |
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|||
|
|
|
|
(Dollars in thousands) |
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|||||||||
Lease Cost |
|
|
|
|
|
|
|
|
|
|
|
|||
Operating lease cost |
|
Occupancy and equipment |
|
$ |
4,282 |
|
|
$ |
4,111 |
|
|
$ |
4,150 |
|
Operating lease cost |
|
Other operating expenses |
|
|
8 |
|
|
|
26 |
|
|
|
20 |
|
Short-term lease cost |
|
Other operating expenses |
|
|
27 |
|
|
|
23 |
|
|
|
19 |
|
Variable lease cost |
|
Occupancy and equipment |
|
|
160 |
|
|
|
160 |
|
|
|
126 |
|
Total lease cost |
|
|
|
$ |
4,477 |
|
|
$ |
4,320 |
|
|
$ |
4,315 |
|
As of December 31, 2025, the Company's operating lease liabilities were as follows:
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|
Minimum Rental |
|
|
Years ended December 31: |
|
(in thousands) |
|
|
2026 |
|
$ |
4,027 |
|
2027 |
|
|
3,780 |
|
2028 |
|
|
3,808 |
|
2029 |
|
|
3,360 |
|
2030 |
|
|
3,423 |
|
Thereafter |
|
|
21,158 |
|
Total Minimum payments required |
|
|
39,556 |
|
Less: implied interest |
|
|
10,203 |
|
Present value of lease liabilities |
|
$ |
29,353 |
|
Lease Commitments: As of December 31, 2025, there are noncancelable operating leases for office space that expire on various dates through 2040. Certain of these leases contain escalation clauses providing for increased rental based on pre-scheduled annual increases or on increases in real estate taxes.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 19, 2024 | |
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.