Leases

The Bank leases store locations, corporate office space, and equipment under non-cancelable leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Substantially all of the leases provide the Company with one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We rent or sublease certain real estate to third parties. Our sublease portfolio consists of operating leases of mainly former store locations or excess space in store or corporate facilities.

The following table presents the balance sheet information related to leases as of March 31, 2019:



(in thousands)
Leases	March 31, 2019
Operating lease right-of-use assets	$	109,807
Operating lease liabilities	$	118,520

The following table presents the components of lease expense for the three months ended March 31, 2019:



(in thousands)	Three Months Ended
Lease Costs	March 31, 2019
Operating lease costs	$	8,126
Short-term lease costs	267
Variable lease costs	2
Sublease income	(787		)
Net lease costs	$	7,608

Prior to the adoption of ASU 2016-02, rent expense for the three months ended March 31, 2018 was $9.6 million and was partially offset by rent income of $684,000.

The following table presents the supplemental cash flow information related to leases for the three months ended March 31, 2019:



(in thousands)	Three Months Ended
Cash Flows	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,244
Right of use assets obtained in exchange for new operating lease liabilities	$	1,554

The following table presents the maturities of lease liabilities as of March 31, 2019:



(in thousands)
Year	Operating Leases
Remainder of 2019	$	23,266
2020	26,824
2021	20,969
2022	15,852
2023	11,924
Thereafter	35,806
Total lease payments	134,641
Less: imputed interest	(16,121		)
Present value of lease liabilities	$	118,520

The following table presents the operating lease term and discount rate for the three months ended March 31, 2019:



(in thousands)	Three Months Ended
	March 31, 2019
Weighted-average remaining lease term (years)	7.0
Weighted-average discount rate	3.71	%

The following table sets forth, as of December 31, 2018, the future minimum lease payments under non-cancelable leases and future minimum income receivable under non-cancelable operating subleases:



(in thousands)
Year	Leases Payments		Subleases Income
2019	$	33,948	$	2,851
2020	29,535		2,711
2021	23,898		2,333
2022	18,250		1,718
2023	14,100		1,337
Thereafter	37,963		3,477
Total	$	157,694	$	14,427