Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

LEASES

The Corporation adopted ASU No. 2016-02 - Leases (Topic 842), as amended, as of January 1, 2019 for certain retail branches, office space, land and equipment. The Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. Operating leases are included in the operating lease right-of use ("ROU") asset, which is included in other assets and the lease liability is included in other liabilities in our condensed balance sheets. The Corporation does not have any finance leases.

ROU assets represent the Corporation's right to use an underlying asset for the lease term and lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Corporation's leases do not provide an implicit rate, the Corporation typically uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease terms may include options to extend or terminate the lease. The exercise of such lease renewal options is at the Corporation's sole discretion and is not included in the present value of lease obligations unless it is reasonably certain that the option will be exercised. 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. Certain of the Corporation's lease agreements include rental payments adjusted periodically for inflation. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Corporation does not have any material sublease agreements.

Supplemental balance sheet information related to leases is presented in the table below as of September 30, 2019.

	September 30, 2019
Operating lease assets	$	21,446
Total lease assets	$	21,446
Operating lease liabilities	$	22,108
Total Lease liabilities	$	22,108
Weighted average remaining lease term (years)
Operating leases	9.0
Weighted average discount rate
Operating leases	3.39		%

The table below presents the components of lease expense for the periods indicated.

	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Lease Cost:
Operating lease cost	$	899		$	2,705
Short-term lease cost	47			120
Variable lease cost	252			763
Sublease income	$	(6	)	$	(6	)
Total lease cost	$	1,192		$	3,582

Supplemental cash flow information related to leases is presented in the tables below.

Maturity of lease liabilities	Operating Leases
Remaining 2019	$	900
2020	3,425
2021	3,147
2022	3,024
2023	2,645
2024 and after	12,777
Total lease payments	$	25,918
Less: Present value discount	3,810
Present value of lease liabilities	$	22,108
Other Information	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,521
ROU assets obtained in exchange for new operating lease liabilities	$	23,496