XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases | 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. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, which are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease, which has a lease term through 2029. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands):
|  |  |  | September 30, 2020 |  | December 31, 2019
Lease ROU Assets |  | Classification |  |  |  |
Operating lease ROU asset |  | Other assets |  | $ | 24,843 |  |  | $ | 18,682 |
Finance lease ROU asset |  | Premises and equipment, net |  | 1,744 |  |  | 1,534 |
Total Lease ROU Asset |  |  |  | $ | 26,587 |  |  | $ | 20,216 |
Lease Liabilities |  |  |  |  |  |
Operating lease liability |  | Other liabilities |  | $ | 25,232 |  |  | $ | 18,893 |
Finance lease liability |  | Other borrowings |  | 2,145 |  |  | 1,953 |
Total Lease Liability |  |  |  | $ | 27,377 |  |  | $ | 20,846 |
The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, the Company uses the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.
|  | September 30, 2020 |  | December 31, 2019
Weighted-Average Remaining Lease Term |  |  |  |
Operating leases |  | 7.64 years |  | 9.69 years
Finance lease |  | 8.85 years |  | 9.60 years
Weighted-Average Discount Rate |  |  |  |
Operating leases |  | 2.95 | % |  | 3.45 | %
Finance lease |  | 5.63 | % |  | 5.63 | %
The following table represents lease expenses and other lease information (in thousands):
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
Lease Expense |  |  |  |  |  |  |  |
Operating Lease Expense |  | $ | 1,585 |  |  | $ | 995 |  |  | $ | 4,898 |  |  | $ | 2,963 |
Finance Lease Expense: |  |  |  |  |  |  |  |
Amortization of ROU assets |  | 43 |  |  | 41 |  |  | 124 |  |  | 234 |
Interest on lease liabilities(1) |  | 27 |  |  | 29 |  |  | 80 |  |  | 147 |
Total |  | $ | 1,655 |  |  | $ | 1,065 |  |  | $ | 5,102 |  |  | $ | 3,344 |
Other Information |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 1,756 |  |  | $ | 969 |  |  | $ | 4,808 |  |  | $ | 2,834 |
Operating cash flows from finance leases |  | 27 |  |  | 29 |  |  | 80 |  |  | 147 |
Financing cash flows from finance leases |  | 47 |  |  | 46 |  |  | 141 |  |  | 217 |
(1)Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases as of September 30, 2020 were as follows (in thousands):
|  | Finance Lease |  | Operating Leases
For the Twelve Months Ended September 30, |  |  |  |
2021 |  | $ | 306 |  |  | $ | 6,188 |
2022 |  | 307 |  |  | 5,634 |
2023 |  | 307 |  |  | 3,547 |
2024 |  | 307 |  |  | 2,813 |
2025 |  | 307 |  |  | 2,471 |
Thereafter |  | 1,182 |  |  | 8,236 |
Total |  | $ | 2,716 |  |  | $ | 28,889 |
Less: Imputed Interest |  | (571) |  |  | (3,657) |
Total Lease Liabilities |  | $ | 2,145 |  |  | $ | 25,232 |
Leases | 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. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, which are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease, which has a lease term through 2029. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands):
|  |  |  | September 30, 2020 |  | December 31, 2019
Lease ROU Assets |  | Classification |  |  |  |
Operating lease ROU asset |  | Other assets |  | $ | 24,843 |  |  | $ | 18,682 |
Finance lease ROU asset |  | Premises and equipment, net |  | 1,744 |  |  | 1,534 |
Total Lease ROU Asset |  |  |  | $ | 26,587 |  |  | $ | 20,216 |
Lease Liabilities |  |  |  |  |  |
Operating lease liability |  | Other liabilities |  | $ | 25,232 |  |  | $ | 18,893 |
Finance lease liability |  | Other borrowings |  | 2,145 |  |  | 1,953 |
Total Lease Liability |  |  |  | $ | 27,377 |  |  | $ | 20,846 |
The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, the Company uses the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.
|  | September 30, 2020 |  | December 31, 2019
Weighted-Average Remaining Lease Term |  |  |  |
Operating leases |  | 7.64 years |  | 9.69 years
Finance lease |  | 8.85 years |  | 9.60 years
Weighted-Average Discount Rate |  |  |  |
Operating leases |  | 2.95 | % |  | 3.45 | %
Finance lease |  | 5.63 | % |  | 5.63 | %
The following table represents lease expenses and other lease information (in thousands):
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
Lease Expense |  |  |  |  |  |  |  |
Operating Lease Expense |  | $ | 1,585 |  |  | $ | 995 |  |  | $ | 4,898 |  |  | $ | 2,963 |
Finance Lease Expense: |  |  |  |  |  |  |  |
Amortization of ROU assets |  | 43 |  |  | 41 |  |  | 124 |  |  | 234 |
Interest on lease liabilities(1) |  | 27 |  |  | 29 |  |  | 80 |  |  | 147 |
Total |  | $ | 1,655 |  |  | $ | 1,065 |  |  | $ | 5,102 |  |  | $ | 3,344 |
Other Information |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 1,756 |  |  | $ | 969 |  |  | $ | 4,808 |  |  | $ | 2,834 |
Operating cash flows from finance leases |  | 27 |  |  | 29 |  |  | 80 |  |  | 147 |
Financing cash flows from finance leases |  | 47 |  |  | 46 |  |  | 141 |  |  | 217 |
(1)Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases as of September 30, 2020 were as follows (in thousands):
|  | Finance Lease |  | Operating Leases
For the Twelve Months Ended September 30, |  |  |  |
2021 |  | $ | 306 |  |  | $ | 6,188 |
2022 |  | 307 |  |  | 5,634 |
2023 |  | 307 |  |  | 3,547 |
2024 |  | 307 |  |  | 2,813 |
2025 |  | 307 |  |  | 2,471 |
Thereafter |  | 1,182 |  |  | 8,236 |
Total |  | $ | 2,716 |  |  | $ | 28,889 |
Less: Imputed Interest |  | (571) |  |  | (3,657) |
Total Lease Liabilities |  | $ | 2,145 |  |  | $ | 25,232 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration