Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

Leases

The Corporation has operating leases for retail and corporate offices, land, and equipment.

These operating leases have terms of 1 year to 44 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any optional periods that the Corporation is reasonably likely to extend have been included in the capitalization.

The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered.

Operating lease costs for the first three months of 2019 were $2.9 million with operating cash flows from operating leases of $2.8 million.

The lease classifications on the consolidated balance sheets were as follows:

	March 31, 2019
($ in Thousands)	Amount		Consolidated Balance Sheets Category
Operating lease right-of-use asset	$	49,372	Other assets
Finance lease right-of-use asset	—		Premises and equipment
Operating lease liability	53,516		Accrued expenses and other liabilities
Finance lease liability	—		Other long-term funding

The weighted-average remaining lease term and weighted-average discount rate were as follows:

	March 31, 2019
($ in Thousands)	Weighted-average lease term (in years)	Weighted-average discount rate
Operating leases
Equipment	1.36	2.73	%
Retail and corporate offices	6.46	3.43	%
Land	12.19	3.39	%
Total operating leases	7.28	3.42	%

Lease payment obligations for each of the next five years and thereafter in addition to a reconciliation to the Corporation’s lease liability were as follows:

($ in Thousands)	Amount
Nine Months Ending December 31, 2019	$	8,330
2020	10,583
2021	9,884
2022	7,440
2023	5,297
Beyond 2023	20,110
Total lease payments	61,644
Less: interest	8,129
Present value of lease payments	$	53,516

As of March 31, 2019, we have additional operating leases, primarily retail and corporate offices, that have not yet commenced of $19.3 million. These operating leases will commence between May 2019 and July 2023 with lease terms of 3 years to 10 years.

Practical Expedients:

The Corporation elected several practical expedients made available by the FASB. Due to materiality, the Corporation elected not to restate comparative periods upon adoption of the new guidance. In addition, the Corporation elected the package of practical expedients whereby the Corporation did not reassess (i) whether existing contracts are, or contain, leases and (ii) lease classification for existing leases. Lastly, the Corporation elected not to separate lease and nonlease components in determining the consideration in the lease agreement.