Leases

3 Months Ended

Mar. 31, 2021

For the Company, material leases consist of operating leases on our facilities, mainly leased branch locations; leases 12 months or less and immaterial equipment leases have been excluded. As of March 31, 2021, the Company had 15 operating real estate leases. In addition, the Company has entered into lease agreements which are not included in the table below as the leases have not commenced. The Company is relocating two branches, with lease agreements that are expected to commence in late 2021. The Company has also entered into a lease agreement for a new branch location which commenced in April 2021.

The Company's leased facilities are contracted under various non-cancelable operating leases, most of which provide options to the Company to extend the lease periods and include periodic rent adjustments. While the Company typically exercises its option to extend lease terms, the lease contains provisions that allow the Company, upon notification, to terminate the lease at the end of the lease term, or any option period. Several real estate leases also provide the Company the right of first refusal should the property be offered for sale.

Lease expense for the three months ended March 31, 2021 and March 31, 2020 were $329 thousand and $325 thousand, respectively. Variable lease costs and short-term lease expenses included in lease expense during these periods were immaterial.

The weighted average remaining lease term for operating leases at March 31, 2021 and March 31, 2020 was 26.4 years and 27.1 years, respectively. The weighted average discount rate was 3.8% at both March 31, 2021 and March 31, 2020.

At March 31, 2021, the remaining undiscounted cash flows by year of these lease liabilities were as follows:


(Dollars in thousands)	Operating Leases
2021 (nine remaining months)	$	938
2022	1,245
2023	1,252
2024	1,255
2025	1,255
Thereafter	22,088
Total lease payments	28,033
Less: Imputed interest	10,636
Total lease liability	$	17,397

In addition, the Company currently collects rent through non-cancellable leases for a small portion of the overall square-footage within its Lowell, Massachusetts campus headquarters and at one of its branch locations. These leases are deemed immaterial.

See also Item (k), "Leases," contained in Note 1, "Summary of Significant Accounting Policies," to the Company's consolidated financial statements contained in the Company's 2020 Annual Report on Form 10-K, for further information regarding the accounting for the Company's leases.