LEASE COMMITMENTS
The Company has operating leases consisting of office space, vehicle leases, computer equipment, and office equipment. Lease terms and options vary in the Company's operating leases dependent upon the underlying leased asset. As of December 31, 2025, the Company has leases with remaining terms of one year to five years, some of which may include no options for renewal and others with options to extend the lease terms from six months to five years.
As of December 31, 2025, the Company is the lessor for five lease agreements related to office space and parking. The remaining terms of the leases vary depending on the property and range from one year to eight years, which may include options for renewal or to extend lease terms or no options for renewal. Lessor income and sublease income are included in net income in the statement of comprehensive income.
The components of our operating leases were as follows for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | |
| | 2025 | 2024 |
| | | |
| | | |
| Operating lease expense | | $ | 8,905 | | $ | 9,436 | |
| Less: Lessor income | | 584 | | 581 | |
| Less: Sublease income | | 532 | | 532 | |
| Net lease expense | | $ | 7,789 | | $ | 8,323 | |
| | | |
| Cash flows information related to leases: | | | |
| Operating cash outflow from operating leases | | $ | 7,906 | | $ | 8,365 | |
The following table provides supplemental information regarding our operating leases as of December 31, 2025 and 2024:
| | | | | | | | | | | |
| | 2025 | 2024 |
| | | |
| Operating lease right-of-use assets ("Other assets" on Consolidated Balance Sheets) | | $ | 12,794 | | $ | 21,412 | |
| Operating lease liabilities ("Accrued expenses and other liabilities" on Consolidated Balance Sheets) | | $ | 13,155 | | $ | 21,867 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 13 | | $ | 635 | |
| | | |
| Weighted average remaining lease term | | 2.32 years | 2.98 years |
| Weighted average discount rate | | 4.65 | % | 4.37 | % |
The maturities of our lease liabilities as of December 31, 2025 and 2024:
| | | | | | | | | | | |
| | 2025 | 2024 |
| | | |
| 2026 | | $ | 7,612 | | $ | 9,168 | |
| 2027 | | 3,713 | | 7,919 | |
| 2028 | | 1,800 | | 3,765 | |
| 2029 | | 418 | | 1,800 | |
| 2030 | | 394 | | 418 | |
| Thereafter | | 34 | | 427 | |
| Total lease payments | | 13,971 | | 23,497 | |
| Less: Imputed interest | | (816) | | (1,630) | |
| Lease liability | | $ | 13,155 | | $ | 21,867 | |
The maturities of our lease receivables as of December 31, 2025 and 2024:
| | | | | | | | | | | |
| | 2025 | 2024 |
| | | |
| 2026 | | $ | 1,150 | | $ | 1,066 | |
| 2027 | | 1,084 | | 1,124 | |
| 2028 | | 578 | | 1,092 | |
| 2029 | | 582 | | 584 | |
| 2030 | | 585 | | 582 | |
| Thereafter | | 1,524 | | 2,109 | |
| Total lease payments receivable | | $ | 5,503 | | $ | 6,557 | |
There have been no allowances for credit losses recorded or write-offs against our receivables related to our lessor agreements because, due to the nature of the operating leases and history of collectability, there is no expectation of credit quality concerns.