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HOME BANCSHARES INC Leases Disclosure

10-KFiled Feb 27, 20262 min read
Leases
The Company leases land and office facilities under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2039 and do not include renewal options based on economic factors that would have implied that continuation of the lease was reasonably certain. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally include real estate taxes and common area maintenance (“CAM”) charges in the rental payments. Short-term leases are leases having a term of twelve months or less. The Company does not separate nonlease components from the associated lease component of our operating leases. As a result, the Company accounts for these components as a single component under Topic 842 since (i) the timing and pattern of transfer of the nonlease components and the associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company recognizes short-term leases on a straight-line basis and does not record a related right-of-use ("ROU") asset and liability for such leases. In addition, equipment leases were determined to be immaterial and a related ROU asset and liability for such leases is not recorded.
As of December 31, 2025, the balances of the ROU asset and lease liability were $33.9 million and $34.8 million, respectively. As of December 31, 2024, the balances of the ROU asset and lease liability were $42.3 million and $45.2 million, respectively. The ROU asset is included in bank premises and equipment, net, and the lease liability is included in accrued interest payable and other liabilities.
The minimum rental commitments under these noncancelable operating leases are as follows as of December 31, 2025 and 2024:
December 31, 2025
(In thousands)
2026$9,802 
20277,689 
20285,377 
20295,071 
20304,767 
Thereafter16,822 
Total future minimum lease payments$49,528 
Discount effect of cash flows(14,738)
Present value of net future minimum lease payments$34,790 
December 31, 2024
(In thousands)
2025$10,262 
20269,663 
20278,341 
20286,464 
20295,675 
Thereafter16,346 
Total future minimum lease payments$56,751 
Discount effect of cash flows(11,560)
Present value of net future minimum lease payments$45,191 
Additional information:
Year Ended
December 31, 2025
Year Ended
December 31, 2024
Year Ended
December 31, 2023
(In thousands)
Lease expense:
Operating lease expense$9,597$9,140$8,087
Variable lease expense1,0351,2171,105
Total lease expense$10,632$10,357$9,192
Other information:
Cash paid for amounts included in the measurement of lease liabilities
$10,248$8,757$8,384
Weighted-average remaining lease term7.457.678.47
Weighted-average discount rate3.64 %3.48 %3.43 %

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 27, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Feb 26, 2020
2018Feb 26, 2019
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 26, 2016

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.

Other Available Disclosures

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