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Leases | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases | Leases Effective January 1, 2019, the Corporation adopted ASC Update 2016-02, "Leases (Topic 842)," using the modified retrospective method of applying the new standard at the adoption date. In addition, the Corporation elected the package of practical expedients permitted under the transition guidance within the new standard as the lessee. This permitted the carry forward of the conclusions on lease identification, lease classification and initial direct costs. The Corporation also elected not to separate lease and non-lease components. Financial results for reporting periods beginning on or after January 1, 2019 are presented under the Topic 842 requirements, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance (Topic 840). As a lessee, the majority of the operating lease portfolio consists of real estate leases for the Corporation's branches, land and office space. The operating leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. ROU assets and lease liabilities are not recognized for leases with an initial term of 12 months or less. The Corporation does not have any finance leases as lessee. Certain real estate leases have lease payments that adjust based on annual changes in the Consumer Price Index ("CPI"). The leases that are dependent upon CPI are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Operating lease expense represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term. Variable lease expense represents the payment of real estate taxes, insurance and common area maintenance based on the Corporation's pro-rata share. Sublease income consists mostly of operating leases for space within the Corporation's offices and branches. The following table presents the components of lease expense, which is included in net occupancy expense on the Consolidated Statements of Income (in thousands):
|  | Three months ended |  | Nine months ended
|  | September 30, 2019 |  | September 30, 2019
Operating lease expense | $ | 4,654 |  |  | $ | 14,140 |
Variable lease expense | 786 |  |  | 2,156 |
Sublease income | (239 | ) |  | (610 | )
Total lease expense | $ | 5,201 |  |  | $ | 15,686 |
Supplemental balance sheet information related to leases was as follows (dollars in thousands):
Operating Leases | Balance Sheet Classification | September 30, 2019
ROU assets | Other assets | $ | 104,746 |
Lease liabilities | Other liabilities | $ | 111,617 |
Weighted average remaining lease term |  | 8.3 years |
Weighted average discount rate |  | 3.05 | %
The discount rate used in determining the lease liability for each individual lease was the Federal Home Loan Bank ("FHLB") fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement or modification date for leases subsequently entered into. Supplemental cash flow information related to operating leases was as follows (in thousands):
| Nine months ended
| September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities | $ | 13,913 |
ROU assets obtained in exchange for lease obligations | 115,681 |
Lease payment obligations for each of the next five years and thereafter, with a reconciliation to the Corporation's lease liability were as follows (in thousands):
Year | Operating Leases
For the three months ending December 31, 2019 | $ | 6,304 |
2020 | 18,761 |
2021 | 17,623 |
2022 | 16,349 |
2023 | 14,094 |
Thereafter | 54,809 |
Total lease payments | 127,940 |
Less: imputed interest | (16,323 | )
Present value of lease liabilities | $ | 111,617 |
As of September 30, 2019, the Corporation had not entered into any material leases that have not yet commenced. As previously disclosed in the Corporation's 2018 Annual Report on Form 10-K and under Topic 840, future minimum lease payments for operating leases having initial or remaining noncancellable lease terms in excess of one year as of December 31, 2018 were $18.0 million, $17.3 million, $15.7 million, $13.7 million, $11.4 million for years 2019 through 2023, respectively, and $43.3 million in the aggregate for all years thereafter.
Leases | Leases Effective January 1, 2019, the Corporation adopted ASC Update 2016-02, "Leases (Topic 842)," using the modified retrospective method of applying the new standard at the adoption date. In addition, the Corporation elected the package of practical expedients permitted under the transition guidance within the new standard as the lessee. This permitted the carry forward of the conclusions on lease identification, lease classification and initial direct costs. The Corporation also elected not to separate lease and non-lease components. Financial results for reporting periods beginning on or after January 1, 2019 are presented under the Topic 842 requirements, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance (Topic 840). As a lessee, the majority of the operating lease portfolio consists of real estate leases for the Corporation's branches, land and office space. The operating leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. ROU assets and lease liabilities are not recognized for leases with an initial term of 12 months or less. The Corporation does not have any finance leases as lessee. Certain real estate leases have lease payments that adjust based on annual changes in the Consumer Price Index ("CPI"). The leases that are dependent upon CPI are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Operating lease expense represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term. Variable lease expense represents the payment of real estate taxes, insurance and common area maintenance based on the Corporation's pro-rata share. Sublease income consists mostly of operating leases for space within the Corporation's offices and branches. The following table presents the components of lease expense, which is included in net occupancy expense on the Consolidated Statements of Income (in thousands):
|  | Three months ended |  | Nine months ended
|  | September 30, 2019 |  | September 30, 2019
Operating lease expense | $ | 4,654 |  |  | $ | 14,140 |
Variable lease expense | 786 |  |  | 2,156 |
Sublease income | (239 | ) |  | (610 | )
Total lease expense | $ | 5,201 |  |  | $ | 15,686 |
Supplemental balance sheet information related to leases was as follows (dollars in thousands):
Operating Leases | Balance Sheet Classification | September 30, 2019
ROU assets | Other assets | $ | 104,746 |
Lease liabilities | Other liabilities | $ | 111,617 |
Weighted average remaining lease term |  | 8.3 years |
Weighted average discount rate |  | 3.05 | %
The discount rate used in determining the lease liability for each individual lease was the Federal Home Loan Bank ("FHLB") fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement or modification date for leases subsequently entered into. Supplemental cash flow information related to operating leases was as follows (in thousands):
| Nine months ended
| September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities | $ | 13,913 |
ROU assets obtained in exchange for lease obligations | 115,681 |
Lease payment obligations for each of the next five years and thereafter, with a reconciliation to the Corporation's lease liability were as follows (in thousands):
Year | Operating Leases
For the three months ending December 31, 2019 | $ | 6,304 |
2020 | 18,761 |
2021 | 17,623 |
2022 | 16,349 |
2023 | 14,094 |
Thereafter | 54,809 |
Total lease payments | 127,940 |
Less: imputed interest | (16,323 | )
Present value of lease liabilities | $ | 111,617 |
As of September 30, 2019, the Corporation had not entered into any material leases that have not yet commenced. As previously disclosed in the Corporation's 2018 Annual Report on Form 10-K and under Topic 840, future minimum lease payments for operating leases having initial or remaining noncancellable lease terms in excess of one year as of December 31, 2018 were $18.0 million, $17.3 million, $15.7 million, $13.7 million, $11.4 million for years 2019 through 2023, respectively, and $43.3 million in the aggregate for all years thereafter.

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