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LEASES
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
LEASES LEASES
Operating Leases

The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of March 31, 2021, the weighted average remaining lease term was 9.9 years with a weighted average discount rate of 3.32%. Rent expense was $0.2 million for the three months ended March 31, 2021. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees.

Leased branch properties at March 31, 2021 and December 31, 2020 consist of the following (in thousands):
March 31, 2021December 31, 2020
Operating lease right-of-use asset$7,145 $8,001 
Less: accumulated amortization(181)(705)
Change in lease agreements371 (151)
Operating lease right-of-use-assets, net$7,335 $7,145 
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2021 (in thousands):
YearAmount
2021$723 
2022970 
2023983 
2024865 
2025841 
2026 and thereafter4,426 
Total minimum lease payments8,808 
Less: amount representing interest(1,346)
Present value of net minimum lease payments$7,462 

As of March 31, 2021, the Corporation had no operating leases that were signed, but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of March 31, 2021, the weighted average remaining lease term was 11.8 years with a weighted average discount rate of 3.36%. The Corporation has included these leases in premises and equipment as of March 31, 2021 and December 31, 2020 as follows (in thousands):
March 31, 2021December 31, 2020
Buildings$5,572 $5,572 
Less: accumulated depreciation(1,958)(1,875)
Net book value$3,614 $3,697 

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of March 31, 2021 (in thousands):
YearAmount
2021$293 
2022391 
2023391 
2024391 
2025409 
2026 and thereafter2,840 
Total minimum lease payments4,715 
Less: amount representing interest(927)
Present value of net minimum lease payments$3,788 

As of March 31, 2021, the Corporation had no finance leases that were signed, but had not yet commenced.

Related Party Transactions

The Bank leases its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through July, 2024 from a member of the Corporation's Board of Directors with monthly rent expense totaling $3 thousand per month. Rent paid to this Board member totaled $13 thousand and $12 thousand for the three month periods ended March 31, 2021 and 2020, respectively.
The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February 2033 from a member of the Corporation's Board of Directors with monthly rent expense totaling $7 thousand per month. Rent paid to this Board member totaled $26 thousand and $24 thousand for the three month periods ended March 31, 2021 and 2020, respectively.
LEASES LEASES
Operating Leases

The Corporation leases certain branch properties under long-term, operating lease agreements. The leases expire at various dates through 2033 and generally include renewal options. As of March 31, 2021, the weighted average remaining lease term was 9.9 years with a weighted average discount rate of 3.32%. Rent expense was $0.2 million for the three months ended March 31, 2021. Certain leases provide for increases in future minimum annual rent payments as defined in the lease agreements. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees.

Leased branch properties at March 31, 2021 and December 31, 2020 consist of the following (in thousands):
March 31, 2021December 31, 2020
Operating lease right-of-use asset$7,145 $8,001 
Less: accumulated amortization(181)(705)
Change in lease agreements371 (151)
Operating lease right-of-use-assets, net$7,335 $7,145 
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2021 (in thousands):
YearAmount
2021$723 
2022970 
2023983 
2024865 
2025841 
2026 and thereafter4,426 
Total minimum lease payments8,808 
Less: amount representing interest(1,346)
Present value of net minimum lease payments$7,462 

As of March 31, 2021, the Corporation had no operating leases that were signed, but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of March 31, 2021, the weighted average remaining lease term was 11.8 years with a weighted average discount rate of 3.36%. The Corporation has included these leases in premises and equipment as of March 31, 2021 and December 31, 2020 as follows (in thousands):
March 31, 2021December 31, 2020
Buildings$5,572 $5,572 
Less: accumulated depreciation(1,958)(1,875)
Net book value$3,614 $3,697 

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of March 31, 2021 (in thousands):
YearAmount
2021$293 
2022391 
2023391 
2024391 
2025409 
2026 and thereafter2,840 
Total minimum lease payments4,715 
Less: amount representing interest(927)
Present value of net minimum lease payments$3,788 

As of March 31, 2021, the Corporation had no finance leases that were signed, but had not yet commenced.

Related Party Transactions

The Bank leases its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through July, 2024 from a member of the Corporation's Board of Directors with monthly rent expense totaling $3 thousand per month. Rent paid to this Board member totaled $13 thousand and $12 thousand for the three month periods ended March 31, 2021 and 2020, respectively.
The Bank leases its branch located at 2 Rush Street, Schenectady, New York, under a lease agreement through February 2033 from a member of the Corporation's Board of Directors with monthly rent expense totaling $7 thousand per month. Rent paid to this Board member totaled $26 thousand and $24 thousand for the three month periods ended March 31, 2021 and 2020, respectively.