RBB Bancorp Leases Disclosure
NOTE 14 - LEASES
We lease several of our operating facilities under various non-cancellable operating leases expiring at various dates through 2037. We are also responsible for common area maintenance, taxes, and insurance at the various branch locations.
Future minimum rent payments on our leases were as follows at December 31, 2025:
| For the year ended December 31,: | (dollars in thousands) | |||
| 2026 | $ | 5,382 | ||
| 2027 | 5,769 | |||
| 2028 | 4,852 | |||
| 2029 | 2,685 | |||
| 2030 | 2,396 | |||
| Thereafter | 5,903 | |||
| Total | $ | 26,987 | ||
| Less amount of payment representing interest | (2,187 | ) | ||
| Total present value of lease payments | $ | 24,800 |
The minimum rent payments shown above are given for the existing lease obligation and are not a forecast of future rental expense. Total rental expense, recognized on a straight-line basis, was $5.8 million, $5.8 million, and $5.7 million for the years ended December 31, 2025, 2024, and 2023. The Company received of $640,000, $612,000, and $570,000 for the years ended December 31, 2025, 2024, and 2023.
The following table presents the operating lease related assets and liabilities recorded on the consolidated balance sheets, and the weighted-average remaining lease terms and discount rates as of the dates indicated:
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Operating Leases | (dollars in thousands) | |||||||
| ROU assets | $ | 23,026 | $ | 28,048 | ||||
| Lease liabilities | 24,800 | 29,705 | ||||||
| Weighted-average remaining lease term (in years) | 5.96 | 6.65 | ||||||
| Weighted-average discount rate | 2.97 | % | 2.83 | % | ||||
| Cash paid for operating leases | 5,009 | 4,742 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Apr 7, 2023 | |
| 2021 | Mar 11, 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.