Leases

12 Months Ended

Dec. 31, 2020

The Corporation leases various office spaces and specialty financing production offices under non-cancellable 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. During 2020, the Corporation extended the term of one of its office spaces by one year, resulting in a $190,000 increase in the right-of-use assets in exchange for a lease liability.

The Corporation entered into a sublease for vacated office space which expires in 2023.

The components of total lease expense were as follows:


	For the Year Ended December 31,
	2020		2019
	(In Thousands)
Operating lease cost	$	1,494	$	1,551
Short-term lease cost	222		257
Variable lease cost	522		493
Less: sublease income	(113)		(9)
Total lease cost, net	$	2,125	$	2,292

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


	December 31, 2020		December 31, 2019
Weighted-average remaining lease term (in years)	5.80		6.56
Weighted-average discount rate	3.03	%	3.09	%

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


(In Thousands)
2021	$	1,557
2022	1,373
2023	1,015
2024	756
2025	666
Thereafter	1,641
Total undiscounted cash flows	7,008
Discount on cash flows	(622)
Total lease liability	$	6,386