REPUBLIC BANCORP INC /KY/ Leases Disclosure
6.RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES
The Company records the present value of its required minimum lease payments plus any amounts probable of being owed under a residual value guarantee as operating lease liabilities. In addition to these operating lease liabilities, the Company records right-of-use assets for the underlying leased property.
As of December 31, 2025, the Company was under 47 separate and distinct operating lease contracts to lease the land and/or buildings for 41 of its offices, with 10 such operating leases contracted with a related party of the Company. As of December 31, 2025, payments on 24 of the Company’s operating leases were considered variable because such payments were adjustable based on periodic changes in the Consumer Price Index.
The Company recorded six third-party lease renewals during 2025 with a total right-of-use asset value of $1.3 million.
The Company recorded five third-party lease renewals during 2024 with a total right-of-use asset value of $2.2 million and recorded one existing related-party lease renewals during 2024 with a total right-of-use asset value of $5.3 million.
The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the category “Occupancy and equipment, net” for years ended December 31, 2025, 2024, and 2023:
Years Ended December 31, (in thousands) | 2025 | 2024 | 2023 | ||||||
Operating lease expense: | |||||||||
Related Party: | |||||||||
Variable lease expense | $ | 4,704 | $ | 4,611 | $ | 4,688 | |||
Fixed lease expense | 104 | 191 | 233 | ||||||
Third-Party: | |||||||||
Variable lease expense | 1,673 | 1,601 | 1,464 | ||||||
Fixed lease expense | 1,607 | 1,538 | 1,566 | ||||||
Total operating lease expense | $ | 8,088 | $ | 7,941 | $ | 7,951 | |||
Other information concerning operating leases: | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 7,196 | $ | 6,943 | $ | 6,901 | |||
Cash paid for variable rent payments not included in measurement of operating lease liabilities | 603 | 603 | 603 | ||||||
The following table presents the weighted-average remaining term and weighted-average discount rate for the Company’s long-term operating leases:
December 31, (dollars in thousands) | | 2025 | 2024 | |||
Weighted average remaining term in years | 6.60 | 7.32 | ||||
Weighted average discount rate | 2.82 | % |
| 3.08 | % | |
The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of December 31, 2025:
Year (in thousands) | | Related Party | | Third-Party | | Total |
| |||
2026 |
| $ | 4,216 |
| $ | 2,800 |
| $ | 7,016 | |
2027 |
| 4,271 |
| 2,426 |
| 6,697 | ||||
2028 |
| 4,149 |
| 1,676 |
| 5,825 | ||||
2029 |
| 3,841 |
| 1,174 |
| 5,015 | ||||
2030 |
| 3,086 |
| 525 |
| 3,611 | ||||
Thereafter |
| 5,464 |
| 2,792 |
| 8,256 | ||||
Total undiscounted cash flows | $ | 25,027 | $ | 11,393 | $ | 36,420 | ||||
Discount applied to cash flows | (3,871) | (179) | (4,050) | |||||||
Total discounted cash flows reported as operating lease liabilities | $ | 21,156 | $ | 11,214 | $ | 32,370 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 11, 2016 | |
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.