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Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases LEASES
Operating lease assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.

The Corporation leases certain full-serve branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will exercise the option. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index.

LeasesClassificationJune 30, 2021December 31, 2020
Assets:
Operating lease assetsOperating lease assets$17,858 $18,407 
Finance lease assets
Premises and equipment, net (1)
393 429 
Total leased assets$18,251 $18,836 
Liabilities:
Operating lease liabilitiesOperating lease liabilities$19,014 $19,449 
Finance lease liabilitiesAccrued interest payable and other liabilities510 550 
Total leased liabilities$19,524 $19,999 
(1) Finance lease assets are recorded net of accumulated amortization of $823 as of June 30, 2021 and $787 as of December 31, 2020.
The components of the Corporation's net lease expense for the three and six months ended June 30, 2021 and 2020, respectively, were as follows:
Three months ended June 30,Six months ended June 30,
Lease CostClassification2021202020212020
Operating lease costNet occupancy expense$437 $459 $877 $914 
Variable lease costNet occupancy expense18 17 35 41 
Finance lease cost:
Amortization of leased assetsNet occupancy expense18 18 36 36 
Interest on lease liabilitiesInterest expense - borrowed funds6 7 12 14 
Sublease income (1)
Net occupancy expense(19)(21)(38)(42)
Net lease cost$460 $480 $922 $963 
(1) Sublease income excludes rental income from owned properties.

The following table sets forth future minimum rental payments under noncancellable leases with terms in excess of one year as of June 30, 2021:
Maturity of Lease Liabilities as of June 30, 2021
Operating Leases (1)
Finance LeasesTotal
2021$796 $52 $848 
20221,661 105 1,766 
20231,550 105 1,655 
20241,515 105 1,620 
20251,505 105 1,610 
After 202519,281 105 19,386 
Total lease payments26,308 577 26,885 
Less: Interest7,294 67 7,361 
Present value of lease liabilities$19,014 $510 $19,524 
(1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $7,709 of legally binding minimum lease payments for leases signed, but not yet commenced.

Lease terms and discount rates related to the Corporation's lease liabilities as of June 30, 2021 and December 31, 2020 were as follows:
Lease Term and Discount RateJune 30, 2021December 31, 2020
Weighted-average remaining lease term (years)
Operating leases18.719.0
Finance leases5.56.0
Weighted-average discount rate
Operating leases3.47 %3.46 %
Finance leases4.49 %4.49 %

Other information related to the Corporation's lease liabilities as of June 30, 2021 and 2020 was as follows:
Other InformationJune 30, 2021June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$452 $462