LEASES

9 Months Ended

Sep. 30, 2020

LEASESThe Company leases 104 buildings and offices under non-cancelable operating leases. The leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Substantially all of the leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term.

Lease Position as of September 30, 2020 and December 31, 2019

The table below presents the lease right-of-use assets and lease liabilities recorded on the balance sheet at September 30, 2020 and December 31, 2019 (dollars in thousands):


	Classification on the Balance Sheet	September 30, 2020		December 31, 2019
Assets
Operating right-of-use lease assets	Other assets	$	58,114	$	61,766

Liabilities
Operating lease liabilities	Accrued expenses and other liabilities	$	61,869	$	65,818


Weighted-average remaining lease term
Operating leases	5.9 years		6.2 years

Weighted-average discount rate
Operating leases	3.4	%	3.7	%

Lease Costs

The table below presents certain information related to the lease costs for operating leases for the three and nine months ended September 30, 2020 and 2019 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost (1)	$	4,104	$	3,818	$	12,517	$	11,650
Short-term lease cost (1)	28		62		78		284
Variable lease cost (1)	619		623		2,169		1,751
Less sublease income (1)	(235)		(228)		(716)		(696)
Total lease cost	$	4,516	$	4,275	$	14,048	$	12,989

(1)Lease expenses and sublease income are classified within occupancy and equipment expense on the Consolidated Statements of Operations.

Supplemental Cash Flow Information

Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities were $4.1 million and $12.5 million for the three and nine months ended September 30, 2020 and were $3.8 million and $11.5 million for the three and nine months ended September 30, 2019, respectively. The Company recorded right-of-use lease assets in exchange for operating lease liabilities of $4.1 million and $7.6 million for the three and nine months ended September 30, 2020 and of $8.8 million and $72.5 million for the three and nine months ended September 30, 2019, respectively.

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the next five years beginning with 2020 and the total of the remaining years to the operating lease liabilities recorded on the Consolidated Statements of Financial Position (in thousands):


	Operating Leases
Remainder of 2020	$	4,147
2021	15,739
2022	12,830
2023	9,813
2024	7,848
Thereafter	18,012
Total minimum lease payments	68,389
Less: amount of lease payments representing interest	(6,520)
Lease obligations	$	61,869

As of September 30, 2020 and December 31, 2019, the Company had no undiscounted lease payments under an operating lease that had not yet commenced.