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LEASES
 6 Months Ended
Jun. 30, 2024
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, 2024, the weighted average remaining lease term was 7.33 years with a weighted average discount rate of 3.51%. Rent expense was $0.3 million for the three months ended June 30, 2024. Rent expense was $0.5 million for the six months ended June 30, 2024. 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 as of June 30, 2024 and December 31, 2023 consist of the following (in thousands):
June 30, 2024December 31, 2023
Operating lease right-of-use asset$5,648 $6,449 
Less: accumulated amortization(391)(801)
Less: lease termination— — 
Add: lease modifications570 — 
Operating lease right-of-use-assets, net$5,827 $5,648 

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of June 30, 2024 (in thousands):
YearAmount
2024$479 
2025959 
2026965 
2027977 
2028845 
2029 and thereafter2,591 
Total minimum lease payments6,816 
Less: amount representing interest(807)
Present value of net minimum lease payments$6,009 

As of June 30, 2024, the Corporation had no operating leases that were signed but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. In May, 2024, the Corporation added $0.9 million to finance leases. The lease arrangements require monthly payments through 2044. As of June 30, 2024, the weighted average remaining lease term of finance leases was 11.53 years with a weighted average discount rate of 3.94%. The Corporation has included these leases in premises and equipment as of June 30, 2024 and December 31, 2023 as follows (in thousands):
June 30, 2024December 31, 2023
Buildings$6,507 $5,572 
Less: accumulated depreciation(3,046)(2,872)
Net book value$3,461 $2,700 
The following is a schedule by year of future minimum lease payments under finance leases, together with the present value of net minimum lease payments as of June 30, 2024 (in thousands):
YearAmount
2024$134 
2025486 
2026502 
2027505 
2028505 
2029 and thereafter2,948 
Total minimum lease payments5,080 
Less: amount representing interest(1,245)
Present value of net minimum lease payments$3,835 

As of June 30, 2024, the Corporation had no finance leases that were signed, but had not yet commenced.

Related Party Transactions
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 $27 thousand for each of the three month periods ended June 30, 2024 and 2023. Rent and CAM related expenses paid to this Board member totaled $55 thousand and $53 thousand for the six month periods ended June 30, 2024 and 2023, 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, 2024, the weighted average remaining lease term was 7.33 years with a weighted average discount rate of 3.51%. Rent expense was $0.3 million for the three months ended June 30, 2024. Rent expense was $0.5 million for the six months ended June 30, 2024. 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 as of June 30, 2024 and December 31, 2023 consist of the following (in thousands):
June 30, 2024December 31, 2023
Operating lease right-of-use asset$5,648 $6,449 
Less: accumulated amortization(391)(801)
Less: lease termination— — 
Add: lease modifications570 — 
Operating lease right-of-use-assets, net$5,827 $5,648 

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of June 30, 2024 (in thousands):
YearAmount
2024$479 
2025959 
2026965 
2027977 
2028845 
2029 and thereafter2,591 
Total minimum lease payments6,816 
Less: amount representing interest(807)
Present value of net minimum lease payments$6,009 

As of June 30, 2024, the Corporation had no operating leases that were signed but had not yet commenced.

Finance Leases

The Corporation leases certain buildings under finance leases. In May, 2024, the Corporation added $0.9 million to finance leases. The lease arrangements require monthly payments through 2044. As of June 30, 2024, the weighted average remaining lease term of finance leases was 11.53 years with a weighted average discount rate of 3.94%. The Corporation has included these leases in premises and equipment as of June 30, 2024 and December 31, 2023 as follows (in thousands):
June 30, 2024December 31, 2023
Buildings$6,507 $5,572 
Less: accumulated depreciation(3,046)(2,872)
Net book value$3,461 $2,700 
The following is a schedule by year of future minimum lease payments under finance leases, together with the present value of net minimum lease payments as of June 30, 2024 (in thousands):
YearAmount
2024$134 
2025486 
2026502 
2027505 
2028505 
2029 and thereafter2,948 
Total minimum lease payments5,080 
Less: amount representing interest(1,245)
Present value of net minimum lease payments$3,835 

As of June 30, 2024, the Corporation had no finance leases that were signed, but had not yet commenced.

Related Party Transactions
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 $27 thousand for each of the three month periods ended June 30, 2024 and 2023. Rent and CAM related expenses paid to this Board member totaled $55 thousand and $53 thousand for the six month periods ended June 30, 2024 and 2023, respectively.