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LEASES
 6 Months Ended
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, 2021December 31, 2020
Operating lease right-of-use asset$7,145 $8,001 
Less: accumulated amortization(370)(705)
Change in lease agreements499 (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):
YearAmount
2021$482 
2022970 
2023989 
2024923 
2025841 
2026 and thereafter4,502 
Total minimum lease payments8,707 
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, 2021December 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):
YearAmount
2021$195 
2022391 
2023391 
2024391 
2025409 
2026 and thereafter2,840 
Total minimum lease payments4,617 
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 Board 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 member 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, 2021December 31, 2020
Operating lease right-of-use asset$7,145 $8,001 
Less: accumulated amortization(370)(705)
Change in lease agreements499 (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):
YearAmount
2021$482 
2022970 
2023989 
2024923 
2025841 
2026 and thereafter4,502 
Total minimum lease payments8,707 
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, 2021December 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):
YearAmount
2021$195 
2022391 
2023391 
2024391 
2025409 
2026 and thereafter2,840 
Total minimum lease payments4,617 
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 Board 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 member 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.