XML 51 R15.htm IDEA: XBRL DOCUMENT v3.20.1
LEASES
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
LEASES

6. LEASES

The Company leases branch locations, office space, land, and equipment. The Company determines if an arrangement is a lease at inception. At March 31, 2020 all leases were classified as operating leases with approximately 160 non-cancellable operating leases where the Company is the lessee. The Company does not have any material arrangements where the Company is the lessor or in a sublease contract. Leases where the Company is a lessee are primarily for real estate leases with remaining lease terms of up to 14 years. The Company’s real estate lease agreements do not contain residual value guarantees and most agreements do not contain restrictive covenants.

Operating leases have been reported on the Company’s Consolidated Balance Sheets as an operating ROU Asset within “Other Assets” and an operating lease liability within “Other Liabilities.” The ROU Asset represents the Company’s right to use an underlying asset over the course of the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments, discounted using the incremental borrowing rate. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating ROU Asset is recognized at commencement date based on the initial measurement of the lease liability, any lease payments made excluding lease incentives, and any initial direct costs incurred. At March 31, 2020 and December 31, 2019, the total ROU Asset were $53.6 million and $54.9 million, respectively, and total operating lease liabilities were $64.2 million and $66.1 million, respectively. Most of the Company’s leases include one or more options to renew, however, the Company is not reasonably certain to exercise those options and therefore does not include the renewal options in the measurement of the ROU Asset and lease liabilities.

Total lease expenses are recorded in Occupancy Expense within noninterest expense on the Company’s Consolidated Statements of Income. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Total operating lease expenses for the three months ended March 31, 2020 and 2019, were $2.9 million and $3.2 million, respectively.

As of March 31, 2020, the Company had no material operating leases that have not yet commenced that create significant rights and obligations, and no material sales leaseback transactions.

Maturities of operating lease liabilities as of March 31, 2020 are as follows for the years ending (dollars in thousands):

For the remaining nine months of 2020

    

$

9,714

2021

 

11,523

2022

 

10,545

2023

 

9,561

2024

 

8,232

2025

6,040

Thereafter

 

15,088

Total future lease payments

 

70,703

Less: Interest

 

6,533

Present value of lease liabilities

$

64,171

Other lease information is as follows as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 (dollars in thousands):

    

March 31, 2020

 

December 31, 2019

Lease Term and Discount Rate of Operating leases:

 

  

Weighted-average remaining lease term (years)

 

7.20

7.36

Weighted-average discount rate (1)

 

2.56

%

2.69

%

Three Months Ended March 31,

Cash paid for amounts included in measurement of lease liabilities:

 

2020

2019

Operating Cash Flows from Operating Leases

$

3,517

$

3,468

Right-of-use assets obtained in exchange for lease obligations:

 

  

Operating leases

 

1,216

4,346

(1)An incremental borrowing rate is used based on information available at commencement date of lease.