Leases

9 Months Ended

Sep. 30, 2019

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 September 30, 2019:


(in thousands)
Leases	September 30, 2019
Operating lease right-of-use assets	$	108,187
Operating lease liabilities	$	116,924

The following table presents the components of lease expense for the three and nine months ended September 30, 2019:


(in thousands)	Three Months Ended		Nine Months Ended
Lease Costs	September 30, 2019		September 30, 2019
Operating lease costs	$	8,091	$	24,333
Short-term lease costs	184		660
Variable lease costs	1		(2)
Sublease income	(625)		(2,027)
Net lease costs	$	7,651	$	22,964

Prior to the adoption of ASU 2016-02, rent expense for the three and nine months ended September 30, 2018 was $9.6 million and $28.6 million, respectively, and was partially offset by rent income of $671,000 and $2.0 million, respectively.

The following table presents the supplemental cash flow information related to leases for the nine months ended September 30, 2019:


(in thousands)	Nine Months Ended
Cash Flows	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,773
Right of use assets obtained in exchange for new operating lease liabilities	$	15,339

The following table presents the maturities of lease liabilities as of September 30, 2019:


(in thousands)
Year	Operating Leases
Remainder of 2019	$	8,239
2020	29,392
2021	23,842
2022	18,497
2023	14,513
Thereafter	37,701
Total lease payments	132,184
Less: imputed interest	(15,260)
Present value of lease liabilities	$	116,924

The following table presents the operating lease term and discount rate as of September 30, 2019:


	September 30, 2019
Weighted-average remaining lease term (years)	6.8
Weighted-average discount rate	3.60	%

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