HANCOCK WHITNEY CORP Leases Disclosure
Note 6. Operating Leases
The Company has operating leases on a number of its branches, certain regional headquarters and other properties to limit its exposure to ownership risks such as fluctuations in real estate prices and obsolescence. The Company leases real estate with lease terms generally from to 20 years, some of which have renewal options from to 20 years. As these extension options are not generally considered reasonably certain of renewal, they are not included in the lease term. The Company is not a lessee in any contracts classified as finance leases.
The following tables present supplemental information pertaining to operating leases at and for the years ended December 31, 2025 and 2024.
|
Years Ended December 31, |
|
||||
($ in thousands) |
2025 |
|
2024 |
|
||
Cash paid for amounts included in the measurement of lease liabilities for operating leases |
$ |
17,370 |
|
$ |
16,992 |
|
Right of use assets obtained in exchange for lease liabilities |
|
11,932 |
|
|
5,749 |
|
|
|
|
|
|
||
|
December 31, |
|
||||
|
2025 |
|
2024 |
|
||
Weighted-average remaining lease term (in years) |
|
9.74 |
|
|
10.40 |
|
Weighted-average discount rate |
|
3.92 |
% |
|
3.77 |
% |
The following table sets forth the maturities of the Company’s lease liabilities and the present value discount at December 31, 2025.
($ in thousands) |
|
|
|
2026 |
$ |
18,737 |
|
2027 |
|
18,728 |
|
2028 |
|
17,559 |
|
2029 |
|
15,679 |
|
2030 |
|
12,881 |
|
Thereafter |
|
64,025 |
|
Total |
$ |
147,609 |
|
Present value discount |
|
(26,104 |
) |
Lease liability |
$ |
121,505 |
|
The following table sets forth the components of the Company’s lease expense for the years ended December 31, 2025, 2024 and 2023.
|
Years Ended December 31, |
|
|||||||
($ in thousands) |
2025 |
|
2024 |
|
2023 |
|
|||
Operating lease expense |
$ |
17,275 |
|
$ |
16,358 |
|
$ |
16,545 |
|
Short-term lease expense |
|
645 |
|
|
323 |
|
|
144 |
|
Variable lease expense |
|
399 |
|
|
329 |
|
|
243 |
|
Sublease income |
|
(440 |
) |
|
(391 |
) |
|
(403 |
) |
Total |
$ |
17,879 |
|
$ |
16,619 |
|
$ |
16,529 |
|
At December 31, 2025, the Company had four leases that had not yet commenced, with discounted lease obligations totaling $7.4 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 25, 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.