Leases

3 Months Ended

Mar. 31, 2021

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
	March 31,
	2021		2020
	(In thousands)
Operating lease expense:
Fixed costs	$	8,496	$	8,245
Variable costs	15		13
Short-term lease costs	256		92
Sublease income	(1,099)		(1,016)
Net lease expense	$	7,668	$	7,334

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

	Three Months Ended
	March 31,
	2021		2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,278	$	8,236
ROU assets obtained in exchange for lease obligations:
Operating leases	$	10,482	$	4,560

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

	March 31,			December 31,
	2021			2020
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	122,372		$	119,787
Operating lease liabilities	$	141,717		$	139,501
Weighted average remaining lease term (in years)	5.6			5.8
Weighted average discount rate	2.40		%	2.54		%

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

	March 31, 2021
	(In thousands)
Period ending December 31,
2021	$	26,769
2022	31,639
2023	28,718
2024	21,407
2025	14,596
Thereafter	29,017
Total operating lease liabilities	152,146
Less: Imputed interest	(10,429)
Present value of operating lease liabilities	$	141,717

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 equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" in the three months ended March 31, 2021 and 2020.

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

	March 31, 2021
	(In thousands)
Period ending December 31,
2021	$	30,548
2022	39,884
2023	30,621
2024	24,880
2025	18,113
Thereafter	40,893
Total undiscounted cash flows	$	184,939

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
	March 31,
	2021		2020
	(In thousands)
Operating lease expense:
Fixed costs	$	8,496	$	8,245
Variable costs	15		13
Short-term lease costs	256		92
Sublease income	(1,099)		(1,016)
Net lease expense	$	7,668	$	7,334

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

	Three Months Ended
	March 31,
	2021		2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,278	$	8,236
ROU assets obtained in exchange for lease obligations:
Operating leases	$	10,482	$	4,560

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

	March 31,			December 31,
	2021			2020
	(Dollars in thousands)
Operating leases:
Operating lease right-of-use assets, net	$	122,372		$	119,787
Operating lease liabilities	$	141,717		$	139,501
Weighted average remaining lease term (in years)	5.6			5.8
Weighted average discount rate	2.40		%	2.54		%

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

	March 31, 2021
	(In thousands)
Period ending December 31,
2021	$	26,769
2022	31,639
2023	28,718
2024	21,407
2025	14,596
Thereafter	29,017
Total operating lease liabilities	152,146
Less: Imputed interest	(10,429)
Present value of operating lease liabilities	$	141,717

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 equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" in the three months ended March 31, 2021 and 2020.

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

	March 31, 2021
	(In thousands)
Period ending December 31,
2021	$	30,548
2022	39,884
2023	30,621
2024	24,880
2025	18,113
Thereafter	40,893
Total undiscounted cash flows	$	184,939