Leases Leases

9 Months Ended

Sep. 30, 2019

Leases of Lessee Disclosure [Text Block]

Leasing

The Company, as lessee, primarily leases office space, banking centers, and certain other assets. These leases are generally classified as operating leases, however, an insignificant amount of the leases are classified as finance leases. The Company's operating leases generally have lease terms for periods of 5 to 20 years with various renewal options. The Company, by policy, does not include renewal options for leases as part of its ROU assets and lease liabilities unless they are deemed reasonably certain to exercise. The Company does not have any material sub-lease agreements.

During 2019, the Company began recognizing operating leases on its consolidated balance sheet by recording a lease liability representing the Company’s legal obligation to make lease payments, and a ROU asset representing its legal right to use the leased office space, banking centers and certain other assets.

The following table summarizes lessee information related to the Company’s operating ROU assets and lease liability:



	At September 30, 2019
(In thousands)	Operating Leases		Consolidated Balance Sheet Line Item Location
ROU lease assets	$	161,730	Premises and equipment, net
Lease liabilities	180,832		Accrued expenses and other liabilities

Operating lease expense is comprised of operating lease costs and variable lease costs, net of sublease income. The pattern and measurement of expense recognition of these costs was not significantly impacted by the adoption of ASU 2016-02 and subsequent ASUs issued to amend Topic 842.

Variable lease payments are defined as payments made for the right to use an asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or a rate are initially measured using the index or rate at the commencement date and are included in the measurement of a lease liability. Variable lease payments that are not dependent on an index or a rate, or changes in variable payments based on an index or rate after the commencement date, are excluded from the measurement of a lease liability and recognized in the period incurred. All variable lease payments are included within variable lease costs presented below.

The components of operating lease cost and other related information are as follows:



(In thousands)	Three months ended September 30, 2019			Nine months ended September 30, 2019
Lease Cost:
Operating lease costs	$	7,512		$	22,384
Variable lease costs	1,292			3,613
Sublease income	(142		)	(437		)
Total operating lease cost	$	8,662		$	25,560
Other Information:
Cash paid for amounts included in the measurement of lease liabilities	$	7,938		$	23,349
Right-of-use assets obtained in exchange for new operating lease liabilities	9,983			22,917

Weighted-average remaining lease term, in years - operating leases at September 30, 2019				8.5
Weighted-average discount rate - operating leases at September 30, 2019				3.31		%

The undiscounted scheduled maturities reconciled to total operating lease liabilities are as follows:



(In thousands)	At September 30, 2019
Remainder of 2019	$	5,379
2020	31,041
2021	30,075
2022	26,560
2023	23,656
Thereafter	94,332
Total operating lease liability payments	211,043
Less: Present value adjustment	30,211
Lease liabilities	$	180,832

See Note 4: Loans and Leases for information relating to leases included within the equipment financing portfolio in which the Company is lessor.