Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

LEASES

Operating Leases as a Lessee

Our lease expense is a component of "Occupancy expense" on our condensed consolidated statements of earnings (loss). The following table presents the components of lease expense for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(In thousands)
Operating lease expense:
Fixed costs	$	8,832	$	8,534	$	17,077	$	16,836
Variable costs	12		46		25		70
Short-term lease costs	102		203		194		723
Sublease income	(1,003)		(1,054)		(2,019)		(2,180)
Net lease expense	$	7,943	$	7,729	$	15,277	$	15,449

The following table presents supplemental cash flow information related to leases for the periods indicated:

	Six Months Ended
	June 30,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	16,519	$	16,408
ROU assets obtained in exchange for lease obligations:
Operating leases	$	14,542	$	149,621

The following table presents supplemental balance sheet and other information related to operating leases as of the dates indicated:

	June 30,			December 31,
	2020			2019
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	125,325		$	129,301
Operating lease liabilities	$	145,261		$	145,354
Weighted average remaining lease term (in years)	6.0			6.1
Weighted average discount rate	2.67		%	2.82		%

The following table presents the maturities of operating lease liabilities as of the date indicated:

	June 30, 2020
	(In thousands)
Period ending December 31,
2020	$	17,487
2021	33,171
2022	27,289
2023	24,265
2024	17,032
2025 and thereafter	38,940
Total operating lease liabilities	158,184
Less: Imputed interest	(12,923)
Present value of operating lease liabilities	$	145,261

Operating Leases as a Lessor

We provide equipment financing to our customers through operating leases where we facilitate the purchase of equipment leased to our customers. The equipment is shown on the condensed consolidated balance sheets as "Equipment leased to others under operating leases" and is depreciated to its estimated residual value at the end of the lease term, shown as "Leased equipment depreciation" in the condensed consolidated statements of earnings (loss), according to our fixed asset accounting policy. We receive periodic rental income payments under the leases, which are recorded as "Noninterest Income" in the condensed consolidated statements of earnings (loss).

The following table presents the rental payments to be received on operating leases as of the date indicated:

	June 30, 2020
	(In thousands)
Period ending December 31,
2020	$	20,056
2021	37,745
2022	31,705
2023	24,213
2024	19,562
2025 and thereafter	34,266
Total undiscounted cash flows	$	167,547

Leases

LEASES

Operating Leases as a Lessee

Our lease expense is a component of "Occupancy expense" on our condensed consolidated statements of earnings (loss). The following table presents the components of lease expense for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(In thousands)
Operating lease expense:
Fixed costs	$	8,832	$	8,534	$	17,077	$	16,836
Variable costs	12		46		25		70
Short-term lease costs	102		203		194		723
Sublease income	(1,003)		(1,054)		(2,019)		(2,180)
Net lease expense	$	7,943	$	7,729	$	15,277	$	15,449

The following table presents supplemental cash flow information related to leases for the periods indicated:

	Six Months Ended
	June 30,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	16,519	$	16,408
ROU assets obtained in exchange for lease obligations:
Operating leases	$	14,542	$	149,621

The following table presents supplemental balance sheet and other information related to operating leases as of the dates indicated:

	June 30,			December 31,
	2020			2019
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	125,325		$	129,301
Operating lease liabilities	$	145,261		$	145,354
Weighted average remaining lease term (in years)	6.0			6.1
Weighted average discount rate	2.67		%	2.82		%

The following table presents the maturities of operating lease liabilities as of the date indicated:

	June 30, 2020
	(In thousands)
Period ending December 31,
2020	$	17,487
2021	33,171
2022	27,289
2023	24,265
2024	17,032
2025 and thereafter	38,940
Total operating lease liabilities	158,184
Less: Imputed interest	(12,923)
Present value of operating lease liabilities	$	145,261

Operating Leases as a Lessor

We provide equipment financing to our customers through operating leases where we facilitate the purchase of equipment leased to our customers. The equipment is shown on the condensed consolidated balance sheets as "Equipment leased to others under operating leases" and is depreciated to its estimated residual value at the end of the lease term, shown as "Leased equipment depreciation" in the condensed consolidated statements of earnings (loss), according to our fixed asset accounting policy. We receive periodic rental income payments under the leases, which are recorded as "Noninterest Income" in the condensed consolidated statements of earnings (loss).

The following table presents the rental payments to be received on operating leases as of the date indicated:

	June 30, 2020
	(In thousands)
Period ending December 31,
2020	$	20,056
2021	37,745
2022	31,705
2023	24,213
2024	19,562
2025 and thereafter	34,266
Total undiscounted cash flows	$	167,547