LEASES

3 Months Ended

Mar. 31, 2019

NOTE 11 – LEASES

The Corporation operating leases are primarily related to the Corporation’s branches and leased commercial space for automated teller machines. Our leases have terms of 2 to 30 years, some of which include options to extend the leases for up to 7 years. As of March 31, 2019, the Corporation did not have a lease that qualifies as a finance lease. The Corporation includes the operating lease right-of-use asset and operating lease liability as part of other assets and account payables and other liabilities, respectively, in the statement of financial condition.

Operating lease cost for the quarter ended March 31, 2019 amounted to $2.7 million.

Supplemental balance sheet information related to leases was as follows:
	March 31,
	2019
(In thousands)

Operating lease right-of-use asset	$	57,178
Operating lease liability	$	59,818
Operating lease weighted-average remaining lease term		11.6 years
Operating lease weighted-average discount rate		3.36%

Generally, the Corporation cannot practically determine the interest rate implicit in the lease. Therefore, the Corporation uses its incremental borrowing rate as the discount rate for the lease.

Supplemental cash flow information related to leases was as follows:
	March 31,
	2019
(In thousands)

Cash paid for amounts included in the measurement of lease liability:
Operating cash flow from operating leases	$	2,742

Maturities under lease liabilities as of March 31, 2019, were as follows:

	Amount
(In thousands)

2019	$	7,050
2020		8,845
2021		8,063
2022		7,048
2023		5,426
2024 and later years		36,454
Total lease payments		72,886
Less: imputed interest		(13,068)
Total present value of lease liability	$	59,818