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LEASES | 6 Months Ended
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Jun. 30, 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 June 30, 2021, the weighted average remaining lease term was 9.6 years with a weighted average discount rate of 3.32%. Rent expense was $0.2 million for the three months ended June 30, 2021. Rent expense was $0.5 million for the six months ended June 30, 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 June 30, 2021 and December 31, 2020 consist of the following (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Operating lease right-of-use asset |  | $ | 7,145 |  |  | $ | 8,001 |
Less: accumulated amortization |  | (370) |  |  | (705) |
Change in lease agreements |  | 499 |  |  | (151) |
Operating lease right-of-use-assets, net |  | $ | 7,274 |  |  | $ | 7,145 |
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of June 30, 2021 (in thousands):
Year |  | Amount
2021 |  | $ | 482 |
2022 |  | 970 |
2023 |  | 989 |
2024 |  | 923 |
2025 |  | 841 |
2026 and thereafter |  | 4,502 |
Total minimum lease payments |  | 8,707 |
Less: amount representing interest |  | (1,298) |
Present value of net minimum lease payments |  | $ | 7,409 |
As of June 30, 2021, the Corporation had one operating lease that was signed, but had not yet commenced. The expected commencement date is October, 2021. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of June 30, 2021, the weighted average remaining lease term was 11.6 years with a weighted average discount rate of 3.37%. The Corporation has included these leases in premises and equipment as of June 30, 2021 and December 31, 2020 as follows (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Buildings |  | $ | 5,572 |  |  | $ | 5,572 |
Less: accumulated depreciation |  | (2,042) |  |  | (1,875) |
Net book value |  | $ | 3,530 |  |  | $ | 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 June 30, 2021 (in thousands):
Year |  | Amount
2021 |  | $ | 195 |
2022 |  | 391 |
2023 |  | 391 |
2024 |  | 391 |
2025 |  | 409 |
2026 and thereafter |  | 2,840 |
Total minimum lease payments |  | 4,617 |
Less: amount representing interest |  | (893) |
Present value of net minimum lease payments |  | $ | 3,724 |
As of June 30, 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 B oard of Directors with monthly rent expense totaling $3 thousand per month. Rent paid to this Board member totaled $12 thousand and $14 thousand for the three month periods ended June 30, 2021 and 2020, respectively. Rent paid to this Board of Directors mem ber totaled $25 thousand and $27 thousand for the six month periods ended June 30, 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 $24 thousand and $26 thousand for the three month periods ended June 30, 2021 and 2020, respectively. Rent paid to this Board of Directors member totaled $50 thousand and $51 thousand for the six month periods ended June 30, 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 June 30, 2021, the weighted average remaining lease term was 9.6 years with a weighted average discount rate of 3.32%. Rent expense was $0.2 million for the three months ended June 30, 2021. Rent expense was $0.5 million for the six months ended June 30, 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 June 30, 2021 and December 31, 2020 consist of the following (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Operating lease right-of-use asset |  | $ | 7,145 |  |  | $ | 8,001 |
Less: accumulated amortization |  | (370) |  |  | (705) |
Change in lease agreements |  | 499 |  |  | (151) |
Operating lease right-of-use-assets, net |  | $ | 7,274 |  |  | $ | 7,145 |
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of June 30, 2021 (in thousands):
Year |  | Amount
2021 |  | $ | 482 |
2022 |  | 970 |
2023 |  | 989 |
2024 |  | 923 |
2025 |  | 841 |
2026 and thereafter |  | 4,502 |
Total minimum lease payments |  | 8,707 |
Less: amount representing interest |  | (1,298) |
Present value of net minimum lease payments |  | $ | 7,409 |
As of June 30, 2021, the Corporation had one operating lease that was signed, but had not yet commenced. The expected commencement date is October, 2021. Finance Leases The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of June 30, 2021, the weighted average remaining lease term was 11.6 years with a weighted average discount rate of 3.37%. The Corporation has included these leases in premises and equipment as of June 30, 2021 and December 31, 2020 as follows (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Buildings |  | $ | 5,572 |  |  | $ | 5,572 |
Less: accumulated depreciation |  | (2,042) |  |  | (1,875) |
Net book value |  | $ | 3,530 |  |  | $ | 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 June 30, 2021 (in thousands):
Year |  | Amount
2021 |  | $ | 195 |
2022 |  | 391 |
2023 |  | 391 |
2024 |  | 391 |
2025 |  | 409 |
2026 and thereafter |  | 2,840 |
Total minimum lease payments |  | 4,617 |
Less: amount representing interest |  | (893) |
Present value of net minimum lease payments |  | $ | 3,724 |
As of June 30, 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 B oard of Directors with monthly rent expense totaling $3 thousand per month. Rent paid to this Board member totaled $12 thousand and $14 thousand for the three month periods ended June 30, 2021 and 2020, respectively. Rent paid to this Board of Directors mem ber totaled $25 thousand and $27 thousand for the six month periods ended June 30, 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 $24 thousand and $26 thousand for the three month periods ended June 30, 2021 and 2020, respectively. Rent paid to this Board of Directors member totaled $50 thousand and $51 thousand for the six month periods ended June 30, 2021 and 2020, respectively.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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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- 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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