Leases

3 Months Ended

Mar. 31, 2020

The Corporation has operating leases for retail and corporate offices, land, and equipment. The Corporation also has a finance lease for land.

These operating leases have original terms of 1 year or longer with remaining maturities up to 43 years, some of which include options to extend the lease term. An analysis of the lease options has been completed and any purchase options or optional periods that the Corporation is reasonably likely to extend have been included in the capitalization.

The discount rate used to capitalize the operating leases is the Corporation's FHLB borrowing rate on the date of lease commencement. When determining the rate to discount specific lease obligations, the repayment period and term are considered.

Operating and finance lease costs and cash flows resulting from these leases are presented below:


($ in Thousands)	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Operating Lease Costs	$	2,623	$	2,905
Finance Lease Costs	36		—
Operating Lease Cash Flows	2,731		2,809
Finance Lease Cash Flows	21		—

The lease classifications on the consolidated balance sheets were as follows:


		March 31, 2020		December 31, 2019
($ in Thousands)	Consolidated Balance Sheets Category	Amount
Operating lease right-of-use asset	Premises and equipment	$	43,321	$	45,381
Finance lease right-of-use asset	Other assets	2,174		2,188
Operating lease liability	Accrued expenses and other liabilities	47,136		49,292
Finance lease liability	Other long-term funding	2,210		2,209

The lease payment obligations, weighted-average remaining lease term, and weighted-average discount rate were as follows:


	March 31, 2020								December 31, 2019
($ in Thousands)	Lease payments		Weighted-average lease term (in years)	Weighted-average discount rate		Lease payments		Weighted-average lease term (in years)	Weighted-average discount rate
Operating leases
Equipment	$	37	0.81	2.72	%	$	46	0.83	2.72	%
Retail and corporate offices	46,476		6.37	3.34	%	48,940		6.49	3.34	%
Land	6,533		9.32	3.20	%	6,594		9.57	3.21	%
Total operating leases	$	53,046	6.71	3.33	%	$	55,580	6.83	3.32	%
Finance leases
Land	$	4,805	39.42	3.99	%	$	4,827	39.67	3.99	%
Total finance leases	$	4,805	39.42	3.99	%	$	4,827	39.67	3.99	%

Contractual lease payment obligations for each of the next five years and thereafter, in addition to a reconciliation to the Corporation’s lease liability, were as follows:


($ in Thousands)	Operating Leases		Finance Leases		Amount
Nine Months Ending December 31, 2020	$	7,992	$	64	$	8,056
2021	10,203		85		10,288
2022	7,914		85		7,999
2023	5,696		85		5,781
2024	5,058		88		5,147
Beyond 2024	16,183		4,398		20,581
Total lease payments	53,046		4,805		57,851
Less: interest	5,910		2,595		8,506
Present value of lease payments	$	47,136	$	2,210	$	49,345

As of March 31, 2020 and December 31, 2019, additional operating leases, primarily retail and corporate offices, that have not yet commenced total $18 million and $16 million, respectively. In addition, finance leases that had not yet commenced at March 31, 2020 and December 31, 2019 total $2 million. These operating and finance leases will commence between April 2020 and October 2023 with lease terms of 2 years to 6 years.