LEASES

12 Months Ended

Dec. 31, 2020

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 December 31, 2020, the weighted average remaining lease term was 10.3 years with a weighted average discount rate of 3.39%. Rent expense was $1.0 million, $1.0 million, and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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. As a result of branch consolidation in November, 2020, the Corporation terminated its lease at 1054 State Route 17C, Owego, New York, releasing $0.2 million in future lease obligation.

Leased branch properties at December 31, 2020 and December 31, 2019 consist of the following (in thousands):

	December 31, 2020		December 31, 2019
Operating lease right-of-use asset	$	8,001	$	8,713
Less: accumulated amortization	(705)		(712)
Less: Lease termination	(151)		—
Operating lease right-of-use-assets, net	$	7,145	$	8,001

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of December 31, 2020 (in thousands):

Year	Amount
2021	$	907
2022	846
2023	866
2024	857
2025	841
2026 and thereafter	4,349
Total minimum lease payments	8,666
Less: amount representing interest	(1,402)
Present value of net minimum lease payments	$	7,264

As of December 31, 2020, the Corporation had no operating leases that were signed, but had not yet commenced. As of January 28, 2021, the Corporation entered into a three year lease agreement related to its new Western New York location, for which a $0.1 million future obligation and lease asset was recorded, effective March 1, 2021.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of December 31, 2020, the weighted average remaining lease term was 12.1 years with a weighted average discount rate of 3.36%. The Corporation has included these leases in premises and equipment as of December 31, 2020 and December 31, 2019.

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 December 31, 2020 (in thousands):

Year	Amount
2021	$	388
2022	391
2023	391
2024	391
2025	409
2026 and thereafter	2,839
Total minimum lease payments	4,809
Less: amount representing interest	(960)
Present value of net minimum lease payments	$	3,849

As of December 31, 2020, the Corporation had no finance leases that were signed, but had not yet commenced.

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 December 31, 2020, the weighted average remaining lease term was 10.3 years with a weighted average discount rate of 3.39%. Rent expense was $1.0 million, $1.0 million, and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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. As a result of branch consolidation in November, 2020, the Corporation terminated its lease at 1054 State Route 17C, Owego, New York, releasing $0.2 million in future lease obligation.

Leased branch properties at December 31, 2020 and December 31, 2019 consist of the following (in thousands):

	December 31, 2020		December 31, 2019
Operating lease right-of-use asset	$	8,001	$	8,713
Less: accumulated amortization	(705)		(712)
Less: Lease termination	(151)		—
Operating lease right-of-use-assets, net	$	7,145	$	8,001

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding CAM charges, as of December 31, 2020 (in thousands):

Year	Amount
2021	$	907
2022	846
2023	866
2024	857
2025	841
2026 and thereafter	4,349
Total minimum lease payments	8,666
Less: amount representing interest	(1,402)
Present value of net minimum lease payments	$	7,264

As of December 31, 2020, the Corporation had no operating leases that were signed, but had not yet commenced. As of January 28, 2021, the Corporation entered into a three year lease agreement related to its new Western New York location, for which a $0.1 million future obligation and lease asset was recorded, effective March 1, 2021.

Finance Leases

The Corporation leases certain buildings under finance leases. The lease arrangements require monthly payments through 2036. As of December 31, 2020, the weighted average remaining lease term was 12.1 years with a weighted average discount rate of 3.36%. The Corporation has included these leases in premises and equipment as of December 31, 2020 and December 31, 2019.

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 December 31, 2020 (in thousands):

Year	Amount
2021	$	388
2022	391
2023	391
2024	391
2025	409
2026 and thereafter	2,839
Total minimum lease payments	4,809
Less: amount representing interest	(960)
Present value of net minimum lease payments	$	3,849

As of December 31, 2020, the Corporation had no finance leases that were signed, but had not yet commenced.