NOTE H—LEASES

United determines if an arrangement is a lease at inception. United and certain subsidiaries have entered into various noncancelable-operating leases for branch and loan production offices as well as operating facilities. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. Operating leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. Presently, United does not have any finance leases.

United’s operating leases are subject to renewal options under various terms. United’s operating leases have remaining terms of 1 to 15 years, some of which include options to extend leases generally for periods of 5 years. United rents or subleases certain real estate to third parties. Our sublease portfolio generally consists of operating leases to other organizations for former branch offices.

ROU assets represent United’s right to use an underlying asset for the lease term and lease liabilities represent United’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of United’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend the lease when it is reasonably certain that United will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The components of lease expense were as follows:


		Year Ended			Year Ended
(In thousands)	Classification	December 31, 2025			December 31, 2024
Operating lease cost	Net occupancy expense	$	20,061		$	20,367
Sublease income	Net occupancy expense		(213	)		(184	)

Net lease cost		$	19,848		$	20,183

Supplemental balance sheet information related to leases was as follows:


(In thousands)	Classification	December 31, 2025		December 31, 2024
Operating lease right-of-use assets	Operating lease right-of-use assets	$	89,312	$	81,742
Operating lease liabilities	Operating lease liabilities	$	95,392	$	86,771

Other information related to leases was as follows:


	December 31, 2025
Weighted-average remaining lease term:
Operating leases		7.59 years
Weighted-average discount rate:
Operating leases		3.62	%

Supplemental cash flow information related to leases was as follows:


	Year Ended
(In thousands)	December 31, 2025		December 31, 2024
Cash paid for amounts in the measurement of lease liabilities:
Operating cash flows from operating leases	$	19,739	$	19,900
ROU assets obtained in the exchange for lease liabilities		18,673		8,896

Maturities of lease liabilities by year and in the aggregate, under operating leases with initial or remaining terms of one year or more, for years subsequent to December 31, 2025, consists of the following:


Year	Amount
(Dollars in thousands)
2026	$	18,633
2027		17,451
2028		15,279
2029		13,147
2030		10,861
Thereafter		34,981

Total lease payments		110,352
Less: imputed interest		(14,960	)

Total	$	95,392

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.

UNITED BANKSHARES INC/WV Leases Disclosure

About Leases Disclosures

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