Leasing Leasing

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leasing

Effective January 1, 2019, premises and equipment included right-of-use assets for leased office space and facilities. Leases are at market rates at inception and may contain escalations based on consumer price index or similar benchmarks and options to renew at then market rates. Renewal options, variable lease payments and residual value guarantees are included in the measurement of right-of-use assets when certain conditions are met. Lease component cash flows are discounted at the applicable FHLB advance rate.

At June 30, 2019, right-of-use assets were $139 million, the weighted-average remaining lease term was 10.0 years and the weighted average discount rate on operating leases was 3.50%. Operating lease costs recognized as occupancy and equipment expense were $5.7 million and $12.1 million for the three and six months ended June 30, 2019. Operating cash flows from operating leases were $5.5 million and $11.4 million for the three and six months ended June 30, 2019.

At June 30, 2019, un-discounted operating lease liabilities are scheduled to mature as follows: $17.7 million in 2019, $28.9 million in 2020, $26.1 million in 2021, $18.9 million in 2022, $16.5 million in 2023 and $104.2 million thereafter. Operating expense and short term lease costs total $3.7 million and $6.1 million for the three and six months ended June 30, 2019.

The Company may lease owned properties or sublease unoccupied leased facilities. Income on these leases is immaterial.