XML 25 R14.htm IDEA: XBRL DOCUMENT v3.22.1
LEASES
 3 Months Ended
Mar. 31, 2022
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, 2022, the weighted average remaining lease term was 9.21 years with a weighted average discount rate of 3.33%. Rent expense was $0.3 million for the three months ended March 31, 2022. 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, 2022 and December 31, 2021 consist of the following (in thousands):
March 31, 2022December 31, 2021
Operating lease right-of-use asset$7,234 $7,145 
Less: accumulated amortization(199)(759)
Less: lease termination— (313)
Add: new lease agreement and modifications— 1,161 
Operating lease right-of-use-assets, net$7,035 $7,234 
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2022 (in thousands):
YearAmount
2022$730 
2023992 
2024924 
2025841 
2026845 
2027 and thereafter4,023 
Total minimum lease payments8,355 
Less: amount representing interest(1,169)
Present value of net minimum lease payments$7,186 

As of March 31, 2022, 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, 2022, the weighted average remaining lease term was 10.86 years with a weighted average discount rate of 3.38%. The Corporation has included these leases in premises and equipment as of March 31, 2022 and December 31, 2021 as follows (in thousands):
March 31, 2022December 31, 2021
Buildings$5,572 $5,572 
Less: accumulated depreciation(2,291)(2,208)
Net book value$3,281 $3,364 

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, 2022 (in thousands):
YearAmount
2022$293 
2023391 
2024391 
2025409 
2026425 
2027 and thereafter2,415 
Total minimum lease payments4,324 
Less: amount representing interest(797)
Present value of net minimum lease payments$3,527 

As of March 31, 2022, 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 and CAM related expenses totaling $4 thousand per month. Rent paid to this Board member totaled $13 thousand for each of the three month periods ended March 31, 2022 and 2021, 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 and CAM related expenses totaling $8 thousand per month. Rent and CAM related expenses paid to this Board member totaled $25 thousand and $26 thousand for the three month periods ended March 31, 2022 and 2021, 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, 2022, the weighted average remaining lease term was 9.21 years with a weighted average discount rate of 3.33%. Rent expense was $0.3 million for the three months ended March 31, 2022. 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, 2022 and December 31, 2021 consist of the following (in thousands):
March 31, 2022December 31, 2021
Operating lease right-of-use asset$7,234 $7,145 
Less: accumulated amortization(199)(759)
Less: lease termination— (313)
Add: new lease agreement and modifications— 1,161 
Operating lease right-of-use-assets, net$7,035 $7,234 
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2022 (in thousands):
YearAmount
2022$730 
2023992 
2024924 
2025841 
2026845 
2027 and thereafter4,023 
Total minimum lease payments8,355 
Less: amount representing interest(1,169)
Present value of net minimum lease payments$7,186 

As of March 31, 2022, 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, 2022, the weighted average remaining lease term was 10.86 years with a weighted average discount rate of 3.38%. The Corporation has included these leases in premises and equipment as of March 31, 2022 and December 31, 2021 as follows (in thousands):
March 31, 2022December 31, 2021
Buildings$5,572 $5,572 
Less: accumulated depreciation(2,291)(2,208)
Net book value$3,281 $3,364 

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, 2022 (in thousands):
YearAmount
2022$293 
2023391 
2024391 
2025409 
2026425 
2027 and thereafter2,415 
Total minimum lease payments4,324 
Less: amount representing interest(797)
Present value of net minimum lease payments$3,527 

As of March 31, 2022, 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 and CAM related expenses totaling $4 thousand per month. Rent paid to this Board member totaled $13 thousand for each of the three month periods ended March 31, 2022 and 2021, 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 and CAM related expenses totaling $8 thousand per month. Rent and CAM related expenses paid to this Board member totaled $25 thousand and $26 thousand for the three month periods ended March 31, 2022 and 2021, respectively.