NOTE 6.         LEASES

 

The Company leases space under non-cancelable operating leases for several of its banking offices and certain office equipment. The Company reports its right-of-use asset in other assets and its lease liabilities in other liabilities in its Consolidated Balance Sheets.

 

Supplemental balance sheet information related to operating leases is as follows:

 

   

December 31, 2025

   

December 31, 2024

 

Right-of-use assets

  $ 22,018     $ 26,059  

Lease liabilities

  $ 23,060     $ 27,053  

Weighted average remaining lease term

    7.3       7.8  

Weighted average discount rate

    3.9

%

    3.8

%

 

Lease costs during the years ended December 31, 2025 and 2024 were as follows (in thousands):

 

   

2025

   

2024

 

Operating lease cost

  $ 5,998     $ 5,706  

Short-term lease cost

    35       75  

Variable lease cost

    895       852  

Sublease income

    (20 )     (19 )

Net lease cost

  $ 6,908     $ 6,614  

 

The following table reconciles future undiscounted lease payments due under non-cancelable leases to the aggregate lease liability as of December 31, 2025:

 

   

(In Thousands)

 

2025

  $ 5,376  

2026

    4,308  

2027

    3,357  

2028

    2,776  

2029

    2,313  

Thereafter

    8,789  

Total lease payments

  $ 26,919  

Less: imputed interest

    (3,859 )

Present value of operating lease liabilities

  $ 23,060  

  

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2023Mar 1, 2024
2022Feb 28, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 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.