XML 24 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Right-of-Use Assets and Lease Liabilities
 6 Months Ended
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