Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Components of Lease Income

The components of lease income were as follows:

(in thousands)	For the Three Months ended September 30, 2020		For the Nine Months Ended September 30, 2020		For the Three Months ended September 30, 2019		For the Nine Months Ended September 30, 2019
Interest income on lease financing (1)	$	13,434	$	38,960	$	10,149	$	27,358

(1) Included in Interest Income – Loans and leases in the Consolidated Statements of Income and Comprehensive Income.

Components of Net Investment in Direct Financing Leases

At September 30, 2020 and December 31, 2019, the carrying value of net investment in leases was $1.9 billion and $1.4 billion. The components of net investment in direct financing leases, including the carrying amount of the lease receivables, as well as the unguaranteed residual asset were as follows:

(in thousands)	September 30, 2020		December 31, 2019
Net investment in the lease - lease payments receivable	$	1,810,625	$	1,302,760
Net investment in the lease - unguaranteed    residual assets		81,713		74,064
Total lease payments	$	1,892,338	$	1,376,824

Summary of Remaining Maturity of Undiscounted Lease Receivables

The following table presents the remaining maturity analysis of the undiscounted lease receivables as of September 30, 2020, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:

(in thousands)	September 30, 2020
2020	$	1,887
2021		53,084
2022		210,926
2023		273,099
2024		119,165
Thereafter		1,234,177
Total lease payments		1,892,338
Plus: deferred origination costs		32,291
Less: unearned income		(121,171	)
Total lease finance receivables, net	$	1,803,458

Summary of Components of Lease Expense

The components of lease expense were as follows:

(in thousands)	For the Three Months Ended September 30, 2020			For the Nine Months Ended September 30, 2020			For the Three Months Ended September 30, 2019			For the Nine Months Ended September 30, 2019
Operating lease cost	$	6,766		$	15,955		$	7,193		$	21,751
Sublease income		(32	)		(54	)		(18	)		(83	)
Total lease cost	$	6,734		$	15,901		$	7,175		$	21,668

Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to the leases for the following periods:

(in thousands)	For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2020		For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement    of lease liabilities:
Operating cash flows from operating leases	$	6,766	$	15,955	$	7,193	$	21,751

Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to the leases for the following periods:

(in thousands, except lease term and discount rate)	September 30, 2020			December 31, 2019
Operating Leases:
Operating lease right-of-use assets		271,515		$	286,194
Operating lease liabilities		271,499			285,991
Weighted average remaining lease term	17 years			17 years
Weighted average discount rate%		3.18	%		3.23	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities:	September 30, 2020
(in thousands)
2020	$	6,771
2021		27,050
2022		26,283
2023		25,867
2024		25,276
Thereafter		248,348
Total lease payments		359,595
Less: imputed interest		(88,096	)
Total present value of lease liabilities	$	271,499