Leasing Leasing

3 Months Ended

Mar. 31, 2019

Leases of Lessee Disclosure [Text Block]

Leasing

Effective January 1, 2019, premises and equipment included right-of-use assets for leased office space and facilities. Leases are at market rates at inception and may contain escalations based on consumer price index or similar benchmarks and options to renew at then market rates. Renewal options, variable lease payments and residual value guarantees are included in the measurement of right-of-use assets when certain conditions are met. Lease component cash flows are discounted at the applicable FHLB advance rate.

Right-of-use assets initially recognized in the first quarter of 2019 were $137 million.

The following represents a summary of operating lease activities (dollars in thousands):



	March 31, 2019
Operating lease cost recognized as occupancy and equipment expense	$	6,419
Operating cash flows from operating leases	5,914
Weighted-average remaining lease term	10.1 years
Weighted-average discount rate operating leases	3.50		%

At March 31, 2019, un-discounted operating lease liabilities are scheduled to mature as follows: $30.2 million in 2019, $28.4 million in 2020, $25.1 million in 2021, $17.7 million in 2022, $15.3 million in 2023 and $97.6 million thereafter. Operating expense and short term lease costs total $2.4 million for the three months ended March 31, 2019.

The Company may lease owned properties or sublease unoccupied leased facilities. Income on these leases is immaterial.