| Schedule of information pertaining to leases |
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Three Months Ended |
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Nine Months Ended |
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|
September 30, |
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|
September 30, |
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|
(Dollars in thousands) |
|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
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|
Lease Cost Components: |
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Amortization of ROU assets – finance leases |
|
$ |
117 |
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$ |
117 |
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$ |
348 |
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$ |
348 |
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|
Interest on lease liabilities – finance leases |
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|
4 |
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|
6 |
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|
14 |
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|
20 |
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|
Operating lease cost (cost resulting from lease payments) |
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|
17,118 |
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|
15,708 |
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|
51,183 |
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|
40,991 |
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Short-term lease cost |
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|
174 |
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|
|
528 |
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|
572 |
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|
1,308 |
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|
Variable lease cost (cost excluded from lease payments) |
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|
1,071 |
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|
|
898 |
|
|
|
3,414 |
|
|
|
3,213 |
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Total lease cost |
|
$ |
18,484 |
|
|
$ |
17,257 |
|
|
$ |
55,531 |
|
|
$ |
45,880 |
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Supplemental Cash Flow and Other Information Related to Leases: |
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Finance lease – operating cash flows |
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$ |
4 |
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$ |
6 |
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$ |
13 |
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$ |
20 |
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|
Finance lease – financing cash flows |
|
|
124 |
|
|
|
122 |
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|
|
370 |
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|
|
363 |
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|
Operating lease – operating cash flows (fixed payments) |
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|
12,394 |
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|
|
13,938 |
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|
|
41,373 |
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|
|
36,802 |
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|
Operating lease – operating cash flows (net change asset/liability) |
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|
(6,085 |
) |
|
|
(6,330 |
) |
|
|
(18,716 |
) |
|
|
(17,752 |
) |
|
New ROU assets – operating leases |
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|
4,722 |
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|
|
2,646 |
|
|
|
43,042 |
|
|
|
399,965 |
|
|
Weighted – average remaining lease term (years) – finance leases |
|
|
1.75 |
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|
|
2.71 |
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|
1.75 |
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|
2.71 |
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|
Weighted – average remaining lease term (years) – operating leases |
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|
12.29 |
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|
12.49 |
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|
12.29 |
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|
12.49 |
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|
Weighted – average discount rate - finance leases |
|
|
1.8 |
% |
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|
1.8 |
% |
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|
1.8 |
% |
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|
1.8 |
% |
|
Weighted – average discount rate - operating leases |
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|
6.4 |
% |
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|
6.4 |
% |
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|
6.4 |
% |
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|
6.4 |
% |
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Operating lease payments due: |
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2026 (excluding 9 months ended September 30,2026) |
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$ |
14,587 |
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|
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2027 |
|
|
|
|
|
|
|
|
60,678 |
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2028 |
|
|
|
|
|
|
|
|
62,637 |
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2029 |
|
|
|
|
|
|
|
|
62,269 |
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2030 |
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|
60,570 |
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Thereafter |
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525,173 |
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Total undiscounted cash flows |
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785,914 |
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|
Discount on cash flows |
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(259,191 |
) |
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|
Total operating lease liabilities |
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|
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|
$ |
526,723 |
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|
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| Schedule of lease receivables and investment in operating leases and their corresponding balance sheet location |
The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at September 30, 2026, and December 31, 2025:
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September 30, |
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December 31, |
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(Dollars in thousands) |
|
2026 |
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|
2025 |
|
|
Direct financing leases: |
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Lease receivables |
|
$ |
224,960 |
|
|
$ |
92,927 |
|
|
Guaranteed residual values |
|
|
5,870 |
|
|
|
4,212 |
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|
Unguaranteed residual values |
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|
17,692 |
|
|
|
11,335 |
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|
Initial direct costs |
|
|
7,251 |
|
|
|
3,502 |
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|
Less: Unearned income |
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|
(37,255 |
) |
|
|
(17,690 |
) |
|
Total net investment in direct financing leases |
|
$ |
218,518 |
|
|
$ |
94,286 |
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|
The following table summarizes direct financing lease income recorded for the three and nine months ended September 30, 2026, and remaining lease payment receivable for each of the next five years:
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Three Months Ended |
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Nine Months Ended |
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|
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|
September 30, |
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|
September 30, |
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|
(Dollars in thousands) |
|
2026 |
2025 |
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|
2026 |
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|
2025 |
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Direct financing lease income |
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|
|
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Interest income |
|
$ |
3,700 |
|
|
$ |
1,100 |
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|
$ |
8,609 |
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|
$ |
2,619 |
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|
Remaining lease payments receivable: |
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|
|
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2026 (excluding 9 months ended September 30,2026) |
|
$ |
16,010 |
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|
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2027 |
|
|
53,773 |
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2028 |
|
|
46,423 |
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2029 |
|
|
47,356 |
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2030 |
|
|
34,768 |
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Thereafter |
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|
32,500 |
|
|
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Total undiscounted lease receivable |
|
|
230,830 |
|
|
|
|
|
|
|
|
|
|
|
Less: unearned interest income |
|
|
(37,255 |
) |
|
|
|
|
|
|
|
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|
Net lease receivables |
|
$ |
193,575 |
|
|
|
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|