Leases Leases

3 Months Ended

Mar. 31, 2021

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.

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 Three Months Ended March 31,
	2021		2020
	(In Thousands)
Operating lease cost	$	375	$	372
Short-term lease cost	39		74
Variable lease cost	129		127
Less: sublease income	(39)		(28)
Total lease cost, net	$	504	$	545

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


	March 31, 2021		December 31, 2020
Weighted-average remaining lease term (in years)	5.66		5.80
Weighted-average discount rate	3.06	%	3.03	%

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


(In Thousands)
2021	$	1,163
2022	1,373
2023	1,015
2024	756
2025	666
Thereafter	1,641
Total undiscounted cash flows	6,614
Discount on cash flows	(574)
Total lease liability	$	6,040