USCB FINANCIAL HOLDINGS, INC.USCB

USCB FINANCIAL HOLDINGS, INC. Leases Disclosure

10-KFiled Mar 14, 20252 min read
4.
 
LEASES
The
 
Company
 
enters
 
into
 
leases
 
in
 
the
 
normal
 
course
 
of
 
business
 
primarily
 
for
 
banking
 
centers
 
and
 
back-office
operations. As of
 
December 31, 2024, the
 
Company leased nine
 
of the ten
 
banking centers and
 
the headquarter building.
The Company
 
is obligated
 
under non-cancelable
 
operating leases
 
for these
 
premises with
 
expiration dates
 
ranging from
2026 to 2036. Many of these leases have extension
 
clauses which the Company could exercise which
 
would extend these
dates.
 
 
The Company
 
has classified
 
all leases as
 
operating leases.
 
Lease expense
 
for operating
 
leases are
 
recognized on
 
a
straight-line basis over
 
the lease term.
 
Right-of-use (“ROU”)
 
assets represent the
 
right to use
 
the underlying
 
asset for the
lease
 
term
 
and
 
lease
 
liabilities
 
represent
 
the
 
obligation
 
to
 
make
 
lease
 
payments
 
arising
 
from
 
the
 
lease.
 
The
 
Company
elected the short-term
 
lease recognition exemption
 
for all leases
 
that qualify,
 
meaning those with
 
terms under 12
 
months.
ROU assets or lease liabilities are not to be recognized
 
for short-term leases.
ROU assets and
 
lease liabilities are
 
recognized at the lease
 
commencement date based on
 
the estimated present value
of lease payments
 
over the
 
lease term.
 
In the Company’s
 
Consolidated Balance
 
Sheets, ROU
 
assets are
 
reported under
other assets while lease liabilities are classified under
 
accrued interest and other liabilities.
 
As
 
most
 
of
 
the
 
Company’s
 
leases
 
do
 
not
 
provide
 
an
 
implicit
 
rate,
 
the
 
incremental
 
borrowing
 
rate
 
based
 
on
 
the
information available
 
at commencement
 
date is
 
used. The
 
Company’s
 
incremental borrowing
 
rate is
 
based on
 
the FHLB
advances rate matching or nearing the lease term.
 
The following table presents the ROU assets and lease liabilities
 
as of December 31, 2024 and 2023 (in thousands):
The weighted average remaining lease term and weighted average
 
discount rate as of December 31, 2024 and 2023:
Future lease payment obligations and a reconciliation to lease
 
liability as of December 31, 2024 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
2023
ROU assets:
Operating leases
 
$
8,451
$
11,423
Lease liabilities:
Operating leases
 
$
8,451
$
11,423
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
2023
Weighted average remaining lease term (in years):
Operating leases
5.95
6.35
Weighted average discount rate:
Operating leases
 
2.94
%
2.94
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2025
$
3,312
2026
2,383
2027
951
2028
492
2029
478
Thereafter
2,509
Total
 
future minimum lease payments
10,125
Less: interest component
(1,674)
Total
 
lease liability
$
8,451

Historical Timeline

Fiscal YearFiled
2024Mar 14, 2025Showing above
2023Mar 22, 2024
2021Mar 24, 2022

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.

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