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Right-of-Use Assets and Lease Liabilities | 6 Months Ended
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Jun. 30, 2019
Leases [Abstract] |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | RIGHT-OF-USE ASSETS AND LEASE LIABILITIES We determine if a contract is or contains a lease at inception. Leases are classified as either finance or operating leases. We recognize leases on our Consolidated Balance Sheets as ROU assets and related lease liabilities. Finance ROU assets are included in property and equipment and related finance lease liabilities are included in long-term borrowings. Operating lease ROU assets are included in other assets and related operating lease liabilities are included in other liabilities. We estimate lease liabilities and ROU assets using our estimated incremental borrowing rate with similar terms at commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term for operating leases. Interest and amortization expenses are recognized for finance leases over the lease term. We have 44 lease contracts that we have recognized under the new lease standard, ASC Topic 842. These leases are for our branch, loan production and support services facilities. We have recognized 42 operating leases and two finance leases under the new lease accounting standard. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term in Net Occupancy on our Consolidated Statements of Comprehensive Income. The following tables present our ROU assets, lease expense, weighted average term, discount rate and maturity analysis of lease liabilities for finance and operating leases as of June 30, 2019 and for the periods presented:
|  | June 30, 2019
(in thousands, except weighted-averages) |  | Three months ended |  |  | Six months ended |
Operating lease expense |  |  | $ | 1,034 |  |  |  | $ | 2,066 |
Amortization of ROU assets - finance leases |  |  | 23 |  |  |  | 45 |
Interest on lease liabilities - finance leases (1) |  |  | 18 |  |  |  | 36 |
Total Lease Expense |  |  | $ | 1,075 |  |  |  | $ | 2,147 |
Operating Leases |  |  |  |  |  |
ROU assets |  |  |  |  |  | $ | 36,417 |
Operating cash flows |  |  |  |  |  | $ | 662 |
Finance Leases |  |  |  |  |  |
ROU assets |  |  |  |  |  | $ | 1,191 |
Operating cash flows |  |  |  |  |  | $ | 36 |
Financing cash flows |  |  |  |  |  | $ | 22 |
Weighted Average Lease Term - Years |  |  |  |  |  |
Operating leases |  |  |  |  |  | 20.14 |
Finance leases |  |  |  |  |  | 15.34 |
Weighted Average Discount Rate |  |  |  |  |  |
Operating leases |  |  |  |  |  | 6.15 | %
Finance leases |  |  |  |  |  | 5.98 | %
(1) Included in borrowings interest expense in our consolidated statements of comprehensive income. All other lease costs in this table are included in net occupancy expense.
(dollars in thousands) |  |  |  |  |  |
Maturity Analysis |  | Finance |  | Operating |  |  | Total |
2019 |  | $ | 117 |  |  | $ | 3,744 |  |  | $ | 3,861 |
2020 |  | 126 |  |  | 3,623 |  |  | 3,749 |
2021 |  | 126 |  |  | 3,686 |  |  | 3,812 |
2022 |  | 128 |  |  | 3,768 |  |  | 3,896 |
2023 |  | 130 |  |  | 3,703 |  |  | 3,833 |
Thereafter |  | 1,342 |  |  | 58,045 |  |  | 59,387 |
Total |  | $ | 1,969 |  |  | $ | 76,569 |  |  | $ | 78,538 |
Less: Present value discount |  | (735 | ) |  | (35,507 | ) |  | (36,242 | )
Lease Liabilities |  | $ | 1,234 |  |  | $ | 41,062 |  |  | $ | 42,296 |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | RIGHT-OF-USE ASSETS AND LEASE LIABILITIES We determine if a contract is or contains a lease at inception. Leases are classified as either finance or operating leases. We recognize leases on our Consolidated Balance Sheets as ROU assets and related lease liabilities. Finance ROU assets are included in property and equipment and related finance lease liabilities are included in long-term borrowings. Operating lease ROU assets are included in other assets and related operating lease liabilities are included in other liabilities. We estimate lease liabilities and ROU assets using our estimated incremental borrowing rate with similar terms at commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term for operating leases. Interest and amortization expenses are recognized for finance leases over the lease term. We have 44 lease contracts that we have recognized under the new lease standard, ASC Topic 842. These leases are for our branch, loan production and support services facilities. We have recognized 42 operating leases and two finance leases under the new lease accounting standard. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term in Net Occupancy on our Consolidated Statements of Comprehensive Income. The following tables present our ROU assets, lease expense, weighted average term, discount rate and maturity analysis of lease liabilities for finance and operating leases as of June 30, 2019 and for the periods presented:
|  | June 30, 2019
(in thousands, except weighted-averages) |  | Three months ended |  |  | Six months ended |
Operating lease expense |  |  | $ | 1,034 |  |  |  | $ | 2,066 |
Amortization of ROU assets - finance leases |  |  | 23 |  |  |  | 45 |
Interest on lease liabilities - finance leases (1) |  |  | 18 |  |  |  | 36 |
Total Lease Expense |  |  | $ | 1,075 |  |  |  | $ | 2,147 |
Operating Leases |  |  |  |  |  |
ROU assets |  |  |  |  |  | $ | 36,417 |
Operating cash flows |  |  |  |  |  | $ | 662 |
Finance Leases |  |  |  |  |  |
ROU assets |  |  |  |  |  | $ | 1,191 |
Operating cash flows |  |  |  |  |  | $ | 36 |
Financing cash flows |  |  |  |  |  | $ | 22 |
Weighted Average Lease Term - Years |  |  |  |  |  |
Operating leases |  |  |  |  |  | 20.14 |
Finance leases |  |  |  |  |  | 15.34 |
Weighted Average Discount Rate |  |  |  |  |  |
Operating leases |  |  |  |  |  | 6.15 | %
Finance leases |  |  |  |  |  | 5.98 | %
(1) Included in borrowings interest expense in our consolidated statements of comprehensive income. All other lease costs in this table are included in net occupancy expense.
(dollars in thousands) |  |  |  |  |  |
Maturity Analysis |  | Finance |  | Operating |  |  | Total |
2019 |  | $ | 117 |  |  | $ | 3,744 |  |  | $ | 3,861 |
2020 |  | 126 |  |  | 3,623 |  |  | 3,749 |
2021 |  | 126 |  |  | 3,686 |  |  | 3,812 |
2022 |  | 128 |  |  | 3,768 |  |  | 3,896 |
2023 |  | 130 |  |  | 3,703 |  |  | 3,833 |
Thereafter |  | 1,342 |  |  | 58,045 |  |  | 59,387 |
Total |  | $ | 1,969 |  |  | $ | 76,569 |  |  | $ | 78,538 |
Less: Present value discount |  | (735 | ) |  | (35,507 | ) |  | (36,242 | )
Lease Liabilities |  | $ | 1,234 |  |  | $ | 41,062 |  |  | $ | 42,296 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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