Virginia National Bankshares Corp Leases Disclosure
Note 7 – Leases
At December 31, 2025, the Company had leased certain of its banking and operations offices, or the land on which such offices were built, under operating lease agreements on terms ranging from 1 to 20 years, most with renewal options. Each of the Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Refer to Note 14 – Related Party Transactions for information regarding leasing transactions with related parties.
The following tables present information about the Company’s leases:
(Dollars in thousands) |
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Lease liability |
|
$ |
6,192 |
|
|
$ |
5,389 |
|
Right-of-use asset |
|
$ |
6,297 |
|
|
$ |
5,551 |
|
Weighted average remaining lease term |
|
4.79 years |
|
|
5.14 years |
|
||
Weighted average discount rate |
|
|
3.50 |
% |
|
|
3.02 |
% |
(Dollars in thousands) |
|
2025 |
|
|
2024 |
|
||
Operating lease expense |
|
$ |
1,720 |
|
|
$ |
1,667 |
|
Short-term lease expense |
|
|
38 |
|
|
|
44 |
|
Total lease expense |
|
$ |
1,758 |
|
|
$ |
1,711 |
|
Cash paid for amounts included in lease liabilities |
|
$ |
1,616 |
|
|
$ |
1,582 |
|
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:
(Dollars in thousands) |
|
December 31, 2025 |
|
|
Twelve months ending December 31, 2026 |
|
$ |
1,642 |
|
Twelve months ending December 31, 2027 |
|
|
1,556 |
|
Twelve months ending December 31, 2028 |
|
|
1,444 |
|
Twelve months ending December 31, 2029 |
|
|
1,053 |
|
Twelve months ending December 31, 2030 |
|
|
609 |
|
Thereafter |
|
|
480 |
|
Total undiscounted cash flows |
|
$ |
6,784 |
|
Less: Discount |
|
|
(592 |
) |
Lease liability |
|
$ |
6,192 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 29, 2023 | |
| 2021 | Mar 25, 2022 | |
| 2020 | Mar 19, 2021 | |
| 2019 | Mar 12, 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.