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LEASES | 3 Months Ended
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Mar. 31, 2023
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, 2023, the weighted average remaining lease term was 8.43 years with a weighted average discount rate of 3.36%. Rent expense was $0.2 million for the three months ended March 31, 2023. 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, 2023 and December 31, 2022 consist of the following (in thousands):
|  | March 31, 2023 |  | December 31, 2022
Operating lease right-of-use asset |  | $ | 6,449 |  |  | $ | 7,234 |
Less: accumulated amortization |  | (199) |  |  | (785) |
Less: lease termination |  | — |  |  | — |
Add: new lease agreement and modifications |  | — |  |  | — |
Operating lease right-of-use-assets, net |  | $ | 6,250 |  |  | $ | 6,449 |
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2023 (in thousands):
Year |  | Amount
2023 |  | $ | 747 |
2024 |  | 924 |
2025 |  | 841 |
2026 |  | 845 |
2027 |  | 854 |
2028 and thereafter |  | 3,169 |
Total minimum lease payments |  | 7,380 |
Less: amount representing interest |  | (953) |
Present value of net minimum lease payments |  | $ | 6,427 |
As of March 31, 2023, 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, 2023, the weighted average remaining lease term was 9.99 years with a weighted average discount rate of 3.40%. The Corporation has included these leases in premises and equipment as of March 31, 2023 and December 31, 2022 as follows (in thousands):
|  | March 31, 2023 |  | December 31, 2022
Buildings |  | $ | 5,572 |  |  | $ | 5,572 |
Less: accumulated depreciation |  | (2,457) |  |  | (2,540) |
Net book value |  | $ | 3,115 |  |  | $ | 3,032 |
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, 2023 (in thousands):
Year |  | Amount
2023 |  | $ | 293 |
2024 |  | 391 |
2025 |  | 409 |
2026 |  | 425 |
2027 |  | 428 |
2028 and thereafter |  | 1,988 |
Total minimum lease payments |  | 3,934 |
Less: amount representing interest |  | (676) |
Present value of net minimum lease payments |  | $ | 3,258 |
As of March 31, 2023, 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 former member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. This Board member retired from the Corporation's Board of Directors as of June 7, 2022. Rent and CAM paid to this Board member while serving on the Board totaled $13 thousand for the three month period ended March 31, 2022. 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 $9 thousand per month. Rent and CAM related expenses paid to this Board member totaled $26 thousand for each of the three month periods ended March 31, 2023 and 2022.
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, 2023, the weighted average remaining lease term was 8.43 years with a weighted average discount rate of 3.36%. Rent expense was $0.2 million for the three months ended March 31, 2023. 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, 2023 and December 31, 2022 consist of the following (in thousands):
|  | March 31, 2023 |  | December 31, 2022
Operating lease right-of-use asset |  | $ | 6,449 |  |  | $ | 7,234 |
Less: accumulated amortization |  | (199) |  |  | (785) |
Less: lease termination |  | — |  |  | — |
Add: new lease agreement and modifications |  | — |  |  | — |
Operating lease right-of-use-assets, net |  | $ | 6,250 |  |  | $ | 6,449 |
The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of March 31, 2023 (in thousands):
Year |  | Amount
2023 |  | $ | 747 |
2024 |  | 924 |
2025 |  | 841 |
2026 |  | 845 |
2027 |  | 854 |
2028 and thereafter |  | 3,169 |
Total minimum lease payments |  | 7,380 |
Less: amount representing interest |  | (953) |
Present value of net minimum lease payments |  | $ | 6,427 |
As of March 31, 2023, 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, 2023, the weighted average remaining lease term was 9.99 years with a weighted average discount rate of 3.40%. The Corporation has included these leases in premises and equipment as of March 31, 2023 and December 31, 2022 as follows (in thousands):
|  | March 31, 2023 |  | December 31, 2022
Buildings |  | $ | 5,572 |  |  | $ | 5,572 |
Less: accumulated depreciation |  | (2,457) |  |  | (2,540) |
Net book value |  | $ | 3,115 |  |  | $ | 3,032 |
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, 2023 (in thousands):
Year |  | Amount
2023 |  | $ | 293 |
2024 |  | 391 |
2025 |  | 409 |
2026 |  | 425 |
2027 |  | 428 |
2028 and thereafter |  | 1,988 |
Total minimum lease payments |  | 3,934 |
Less: amount representing interest |  | (676) |
Present value of net minimum lease payments |  | $ | 3,258 |
As of March 31, 2023, 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 former member of the Corporation's B oard of Directors with monthly rent and CAM related expenses totaling $4 thousand per month. This Board member retired from the Corporation's Board of Directors as of June 7, 2022. Rent and CAM paid to this Board member while serving on the Board totaled $13 thousand for the three month period ended March 31, 2022. 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 $9 thousand per month. Rent and CAM related expenses paid to this Board member totaled $26 thousand for each of the three month periods ended March 31, 2023 and 2022.

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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 https://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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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