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Leases | 3 Months Ended
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Mar. 31, 2021
Leases [Abstract] |
Leases | LEASES Operating lease assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income. The Corporation leases certain full-serve branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.
Leases |  | Classification |  | March 31, 2021 |  | December 31, 2020
Assets: |  |  |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 18,130 |  |  | $ | 18,407 |
Finance lease assets |  | Premises and equipment, net (1) |  | 411 |  |  | 429 |
Total leased assets |  |  |  | $ | 18,541 |  |  | $ | 18,836 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | $ | 19,234 |  |  | $ | 19,449 |
Finance lease liabilities |  | Accrued interest payable and other liabilities |  | 530 |  |  | 550 |
Total leased liabilities |  |  |  | $ | 19,764 |  |  | $ | 19,999 |
(1) Finance lease assets are recorded net of accumulated amortization of $805 as of March 31, 2021 and $787 as of December 31, 2020. The components of the Corporation's net lease expense for the three months ended March 31, 2021 and 2020, respectively, were as follows:
|  |  |  | Three months ended March 31,
Lease Cost |  | Classification |  | 2021 |  | 2020
Operating lease cost |  | Net occupancy expense |  | $ | 440 |  |  | $ | 455 |
Variable lease cost |  | Net occupancy expense |  | 17 |  |  | 24 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets |  | Net occupancy expense |  | 18 |  |  | 18 |
Interest on lease liabilities |  | Interest expense - borrowed funds |  | 6 |  |  | 7 |
Sublease income (1) |  | Net occupancy expense |  | (19) |  |  | (21) |
Net lease cost |  |  |  | $ | 462 |  |  | $ | 483 |
(1) Sublease income excludes rental income from owned properties. The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of March 31, 2021:
Maturity of Lease Liabilities as of March 31, 2021 |  | Operating Leases (1) |  | Finance Leases |  | Total
2021 |  | $ | 1,181 |  |  | $ | 78 |  |  | $ | 1,259 |
2022 |  | 1,661 |  |  | 105 |  |  | 1,766 |
2023 |  | 1,550 |  |  | 105 |  |  | 1,655 |
2024 |  | 1,515 |  |  | 105 |  |  | 1,620 |
2025 |  | 1,505 |  |  | 105 |  |  | 1,610 |
After 2025 |  | 19,281 |  |  | 105 |  |  | 19,386 |
Total lease payments |  | 26,693 |  |  | 603 |  |  | 27,296 |
Less: Interest |  | 7,459 |  |  | 73 |  |  | 7,532 |
Present value of lease liabilities |  | $ | 19,234 |  |  | $ | 530 |  |  | $ | 19,764 |
(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $6,565 of legally binding minimum lease payments for leases signed, but not yet commenced. Lease terms and discount rates related to the Corporation's lease liabilities as of March 31, 2021 and December 31, 2020 were as follows:
Lease Term and Discount Rate |  | March 31, 2021 |  | December 31, 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 18.9 |  | 19.0
Finance leases |  | 5.7 |  | 6.0
Weighted-average discount rate |  |  |  |
Operating leases |  | 3.47 | % |  | 3.46 | %
Finance leases |  | 4.49 | % |  | 4.49 | %
Other information related to the Corporation's lease liabilities as of March 31, 2021 and 2020 was as follows:
Other Information |  | March 31, 2021 |  | March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 223 |  |  | $ | 212 |

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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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