Leases

The Corporation leases various office spaces, loan production offices, and specialty financing production offices under non-cancelable operating leases which expire on various dates through 2028. The Corporation also leases office equipment. The Corporation recognizes a right-of-use asset and an operating lease liability for all leases, with the exception of short-term leases. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term.

In addition, the Corporation entered into a sublease for vacated office space which expires in 2023. As a result, the Corporation recognized an impairment of the corresponding right-of-use asset of $299,000 during the year ended December 31, 2019.

The components of total lease expense were as follows:



	For the Year Ended December 31, 2019
	(In Thousands)
Operating lease cost	$	1,551
Short-term lease cost	257
Variable lease cost	493
Less: sublease income	(9		)
Total lease cost, net	$	2,292

Quantitative information regarding the Corporation’s operating leases was as follows:



	December 31, 2019
Weighted-average remaining lease term (in years)	6.56
Weighted-average discount rate	3.09	%

The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities:



(In Thousands)
2020	$	1,541
2021	1,382
2022	1,373
2023	1,015
2024	756
Thereafter	2,307
Total undiscounted cash flows	8,374
Discount on cash flows	(833		)
Total lease liability	$	7,541