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Operating Leases | 12 Months Ended
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Dec. 31, 2019
Operating Leases [Abstract] |
Operating Leases | NOTE 28— OPERATING LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, Oriental adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For Oriental, Topic 842 primarily affected the accounting treatment for operating lease agreements in which Oriental is the lessee. Oriental elected the hindsight practical expedient, which allow s entities to use hindsight when determining lease term and impairment of right-of-use assets. As a result of the changes to the lease terms, Oriental reduced its retained earnings by $736 thousand on the effective date, January 1, 2019. Lessee Accounting Right of use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate. Lease terms incl ude options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, an y cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, and any impairment of the right-of-use asset. Variable lease payments are genera lly expensed as incurred and include certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. Oriental’s leases do not contain residual value guarantees or material variable lease payments. All leases were classified a s operating leases. Substantially all of the leases in which Oriental is the lessee are comprised of real estate property for branches, ATM locations, and office space with terms extending through 2032. All of our leases are classified as operating leas es, and therefore, were previously not recognized on Oriental’s consolidated statements of financial condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of financial condition a s a right-of-use asset and a corresponding lease liability. Oriental leases to others certain space in its principal offices for terms extending through 2023; all are operating leases. Operating Lease Cost
|  | Year Ended December 31, 2019 |  |
|  |  | Statement of Operations Classification
Lease costs |  | $ | 6,571 |  | Occupancy and equipment
Variable lease costs |  |  | 2,324 |  | Occupancy and equipment
Short-term lease cost |  |  | 180 |  | Occupancy and equipment
Lease income |  |  | (554) |  | Occupancy and equipment
Total lease cost |  | $ | 8,521 |  |
Rent expense for the years ended December 31, 2018 and 2017, prior to adoption of ASU 2016-02 (Topic 842), w as $9.0 million and $9.9 million, respectively, included in the "occupancy and equipment" caption in the unaudited consolidated statements of operations. Operating Lease Assets and Liabilities
|  |  | December 31 2019 |  |
|  |  |  | Statement of Financial Condition Classification
|  |  | (In thousands) |  |
Right-of-use assets |  | $ | 39,112 |  | Operating lease right-of-use assets
Lease Liabilities |  | $ | 39,840 |  | Operating leases liabilities
| December 31, 2019
| (In thousands)
Weighted-average remaining lease term |  | 6.5 years
Weighted-average discount rate |  | 6.8%
Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows:
| Minimum Rent
Year Ending December 31, | (In thousands)
2020 | $ | 10,823
2021 |  | 8,544
2022 |  | 7,225
2023 |  | 6,082
2024 |  | 4,077
Thereafter |  | 13,358
Total lease payments | $ | 50,109
Less imputed interest |  | 10,269
Present value of lease liabilities | $ | 39,840
Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2018 were as follows:
| Minimum Rent
Year Ending December 31, | (In thousands)
2019 | $ | 5,618
2020 |  | 4,293
2021 |  | 3,360
2022 |  | 2,494
2023 |  | 1,968
Thereafter |  | 6,679
Total future minimum lease payments | $ | 24,412

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