Rhinebeck Bancorp, Inc. Leases Disclosure
10. Leases
As of December 31, 2025, the Company leases real estate for seven branch offices and two administrative offices under various lease agreements. All of our leases are classified as operating leases.
The Bank closed its Middletown branch, effective January 27, 2026, as part of its ongoing strategy to enhance operational efficiency and position the Bank for long-term growth.
The calculated amount of the right-of-use (“ROU”) assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s leases have maturities which range from 2024 to 2048, some of which include lessee options to extend the lease term. If the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The weighted average remaining life of the lease terms for these leases was 15.2 and 15.7 years as of December 31, 2025 and 2024, respectively. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, which is the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company calculated a weighted average discount rate of 4.12% and 3.91% in determining the lease liability as of December 31, 2025 and 2024, respectively.
For the years ended December 31, 2025 and 2024, total operating lease costs were $797 and $782, respectively, and were included in occupancy and other expense. The ROU asset, included in other assets, was $6,045 and $7,307 as of December 31, 2025 and 2024, respectively. The corresponding lease liability, included in accrued expenses and other liabilities was $6,144 and $7,386 as of December 31, 2025 and 2024, respectively.
Future minimum payments for operating leases with initial terms of one year or more as of December 31, 2025 were as follows:
Years ending December 31: | | ||
2026 | $ | 692 | |
2027 |
| 644 | |
2028 |
| 648 | |
2029 |
| 654 | |
2030 |
| 604 | |
Thereafter |
| 5,497 | |
Total future minimum lease payments | 8,739 | ||
Amounts representing interest | (2,595) | ||
Present Value of Net Future Minimum Lease Payments | $ | 6,144 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2023 | Mar 26, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 22, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2018 | Mar 29, 2019 | |
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.