Leases
The following table presents ROU assets and lease liabilities: | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 |
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| ROU assets: | | | |
| Finance leases | $ | 2,918 | | | $ | 227 | |
| Operating leases | 163,886 | | | 166,194 | |
| Total | $ | 166,804 | | | $ | 166,421 | |
| Lease liabilities | | | |
| Finance leases | $ | 3,201 | | | $ | 234 | |
| Operating leases | 227,874 | | | 224,973 | |
| Total | $ | 231,075 | | | $ | 225,207 | |
As of December 31, 2025, operating leases had remaining lease terms of approximately 1 year to 14 years, while finance leases had remaining terms of less than 3 years.
The table below summarizes the Company’s net lease cost:
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| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 |
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| Finance lease cost: | | | |
| Amortization of ROU assets | $ | 813 | | | $ | 1,303 | |
| Interest on lease liabilities | 66 | | | 19 | |
| Operating lease cost | 19,733 | | | 21,593 | |
| Short-term lease cost | 35 | | | 37 | |
| Variable lease cost | 9,309 | | | 6,069 | |
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| Net lease cost | $ | 29,956 | | | $ | 29,021 | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from finance leases | $ | 66 | | | $ | 19 | |
| Operating cash flows from operating leases | 25,995 | | | 46,920 | |
| Financing cash flows from finance leases | 537 | | | 1,315 | |
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| ROU assets obtained in exchange for new finance leases | 3,504 | | | — | |
| ROU assets obtained in exchange for new operating leases | 13,405 | | | 123,344 | |
The table below summarizes other information related to operating and finance leases:
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| Year Ended December 31, |
| 2025 | | 2024 |
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| Weighted-average remaining lease term - finance leases, in years | 2.7 | | 0.4 |
| Weighted-average remaining lease term - operating leases, in years | 12.9 | | 13.5 |
| Weighted-average discount rate - finance leases | 4.06 | % | | 2.97 | % |
| Weighted-average discount rate - operating leases | 4.56 | % | | 4.49 | % |
The table below summarizes the maturity of remaining lease liabilities as of December 31, 2025:
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| (in thousands) | Finance Leases | | Operating Leases | | Total |
| 2026 | $ | 1,251 | | | $ | 23,637 | | | $ | 24,888 | |
| 2027 | 1,251 | | | 23,294 | | | 24,545 | |
| 2028 | 884 | | | 22,492 | | | 23,376 | |
| 2029 | — | | | 21,817 | | | 21,817 | |
| 2030 | — | | | 22,385 | | | 22,385 | |
| 2030 and thereafter | — | | | 194,079 | | | 194,079 | |
| Total lease payments | 3,386 | | | 307,704 | | | 311,090 | |
| Less: Interest | (185) | | | (79,830) | | | (80,015) | |
| Present value of lease liabilities | $ | 3,201 | | | $ | 227,874 | | | $ | 231,075 | |
As of December 31, 2025, the Company had $21.9 million of future payments for banking center and corporate office leases that have not yet commenced. These leases are expected to commence during 2026 and 2027, with lease terms of approximately 10 to 11 years.
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.