Western New England Bancorp, Inc. Leases Disclosure
| 12. | LEASES |
The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. We have not elected the practical expedient to account for lease and non-lease components as one lease component. The Company has operating leases for certain of our banking offices and ATMs. Our leases have remaining lease terms of less than one year to thirteen years, some of which include options to extend the leases for additional terms up to ten years. Operating lease costs were $1.6 million, $1.6 million, and $1.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Supplemental cash flow information related to leases was as follows:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| (Dollars in thousands) | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 1,526 | $ | 1,524 | ||||
| ROU assets obtained in exchange for lease obligations: | ||||||||
| Operating leases | 252 | 451 | ||||||
Supplemental balance sheet information related to leases was as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| (Dollars in thousands) | ||||||||
| Operating lease ROU assets | $ | 6,370 | $ | 7,383 | ||||
| Operating lease liabilities | $ | 6,660 | $ | 7,673 | ||||
At December 31, 2025, the weighted average remaining lease term for our operating leases was 8.0 years with a weighted average discount rate of 3.37%. At December 31, 2024, the weighted average remaining lease term for our operating leases was 8.4 years with a weighted average discount rate of 3.33%.
Future undiscounted lease payments for the Company’s operating lease liabilities were as follows (in thousands):
| Years Ending December 31, | |||||
| 2026 | $ | 1,404 | |||
| 2027 | 1,145 | ||||
| 2028 | 907 | ||||
| 2029 | 866 | ||||
| 2030 | 639 | ||||
| Thereafter | 2,695 | ||||
| Total lease payments | 7,656 | ||||
| Less imputed interest | (996 | ) | |||
| Total | $ | 6,660 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2021 | Mar 11, 2022 | |
| 2019 | Mar 11, 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.