Looks like it's welted and lined, very nice.
Good eye there, Snubbyfan. Most folks probably know what holster lining is and what it's for, but may have some difficulty with "welted".
The Enhanced Pancake model features welted seam construction, which utilizes a third layer of leather between the inner and outer holster panels in the "wings" where the belt attachment points are located. This serves several purposes.
1. The welt adds considerably to the strength and rigidity of the finished holster, which helps to support the weight on the belt better and allows less deformation of the belt attachment points due to wear over time.
2. The welt allows the stitch-lines to be located as closely as possible to the outline of the handgun. This closer overall fitting adds to the holster's retention qualities.
3. The welt forms a natural channel for the front sight, allowing it to enter and exit the holster with little contact. I've seen a lot of holsters over the years that would shed little slivers of leather fibers on the front sight, and that can be a little distracting when trying to get a good sight picture, not to mention wear to the finish of the front sight that can cause glare.
4. The welts permit use of tunnel-style belt loops rather than the more traditional slots. This leaves the exterior shell of the holster smooth, permitting the cover garment to move over the holstered handgun with less tendency to snag and print.
Pancake-style holsters were pioneered by Roy Baker about 50 years ago. Since then most holster makers have offered some variation on the theme, and a number of design changes have resulted. I like to think that the Enhanced Pancake design represents the first really significant improvement of a great basic design.
Best regards.