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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases
Note 28 – Leases
The
 
Corporation enters
 
in
 
the
 
ordinary course
 
of
 
business
 
into
 
operating and
 
finance
 
leases
 
for
 
land,
 
buildings
 
and
 
equipment.
These contracts generally do not include purchase options or residual value guarantees.
 
The remaining lease terms of
0.1
 
to
31.30
years
 
considers options
 
to
 
extend the
 
leases for
 
up
 
to
20
 
years. The
 
Corporation identifies
 
leases when
 
it
 
has
 
both the
 
right to
obtain substantially all of the economic benefits from
 
the use of the asset and the right to direct
 
the use of the asset.
The Corporation
 
recognizes right-of-use
 
assets (“ROU
 
assets”) and
 
lease liabilities
 
related to
 
operating and
 
finance leases
 
in its
Consolidated Statements of Financial Condition under the caption of other assets and other liabilities, respectively. Refer to Note 13
and
 
Note
 
17
 
to
 
the
 
Consolidated Financial
 
Statements,
 
respectively,
 
for
 
information
 
on
 
the
 
balances of
 
these
 
lease
 
assets
 
and
liabilities.
The Corporation uses the
 
incremental borrowing rate for
 
purposes of discounting lease payments
 
for operating and finance leases,
since it
 
does not have
 
enough information to
 
determine the rates
 
implicit in the
 
leases. The discount
 
rates are based
 
on fixed-rate
and
 
fully
 
amortizing
 
borrowing
 
facilities
 
of
 
its
 
banking
 
subsidiaries
 
that
 
are
 
collateralized.
 
For
 
leases
 
held
 
by
 
non-banking
subsidiaries, a credit spread is added to this rate
 
based on financing transactions with a
 
similar credit risk profile.
The following table presents the undiscounted
 
cash flows of operating and finance leases for
 
each of the following periods:
September 30, 2023
(In thousands)
Remaining
2023
2024
2025
2026
2027
Later
Years
Total Lease
Payments
Less:
Imputed
Interest
Total
Operating Leases
$
7,690
$
30,084
$
27,214
$
18,806
$
13,571
$
50,056
$
147,421
$
(18,398)
$
129,023
Finance Leases
2,061
3,991
4,084
3,839
2,468
9,346
25,789
(2,609)
23,180
The following table presents the lease cost recognized
 
by the Corporation in the Consolidated
 
Statements of Operations as follows:
Quarters ended September 30,
Nine months ended September 30,
(In thousands)
2023
2022
2023
2022
Finance lease cost:
Amortization of ROU assets
$
1,071
$
643
$
2,966
$
2,088
Interest on lease liabilities
219
261
749
848
Operating lease cost
7,924
7,498
23,578
22,785
Short-term lease cost
101
231
322
399
Variable lease cost
49
33
150
86
Sublease income
(20)
(9)
(46)
(28)
Total lease cost
[1]
$
9,344
$
8,657
$
27,719
$
26,178
[1]
Total lease cost
 
is recognized as part of net occupancy expense, except
 
for the net gain recognized from sale and leaseback
 
transactions which
was included as part of other operating income.
The
 
following
 
table
 
presents
 
supplemental
 
cash
 
flow
 
information
 
and
 
other
 
related
 
information
 
related
 
to
 
operating
 
and
 
finance
leases.
Nine months ended September 30,
(Dollars in thousands)
2023
2022
Cash paid for amounts included in the measurement of
 
lease liabilities:
Operating cash flows from operating leases
$
23,218
$
22,389
Operating cash flows from finance leases
749
848
Financing cash flows from finance leases
3,557
2,363
ROU assets obtained in exchange for new lease obligations:
Operating leases
$
4,864
$
1,937
Finance leases
1,796
556
Weighted-average remaining lease term:
Operating leases
7.3
years
7.4
years
Finance leases
7.8
years
8.4
years
Weighted-average discount rate:
Operating leases
3.2
%
2.8
%
Finance leases
3.8
%
4.3
%
As
 
of
 
September
 
30,
 
2023,
 
the
 
Corporation
 
has
 
additional
 
operating
 
leases
 
contracts
 
that
 
have
 
not
 
yet
 
commenced
 
with
 
an
undiscounted contract amount of $
4.1
 
million, which will have lease terms ranging
 
from
10
 
to
20
 
years.