Leases

12 Months Ended

Dec. 31, 2020

For the Company, material leases consist of operating leases on our facilities, mainly branch leases; leases 12-months or less and immaterial equipment leases have been excluded. As of December 31, 2020, the Company had 15 active operating real estate leases. 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 expenses for the years ended December 31, 2020 and 2019 were $1.3 million and $1.4 million, respectively. Variable lease costs and short-term lease expenses included in lease expense during this period were immaterial.

Prior to adoption of ASU No. 2016-02, "Leases (Topic 842)," total rent expense was $1.4 million for the year ended December 31, 2018.

The weighted average remaining lease term for operating leases at December 31, 2020 and 2019 was 26.6 years and 27.3 years, respectively. The weighted average discount rate was 3.80% and 3.79% at December 31, 2020 and 2019, respectively.

At December 31, 2020, the remaining undiscounted cash flows by year of these lease liabilities were as follows:


(Dollars in thousands)	Operating Leases
2021	$	1,242
2022	1,245
2023	1,252
2024	1,255
2025	1,255
Thereafter	22,088
Total lease payments	$	28,337
Less: Imputed interest	10,798
Total lease liability	$	17,539

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.

During the fourth quarter of 2020, the Company amended one of its lease agreements to relocate a branch within the same building and entered into a new lease agreement for its 27th branch location; both of these transactions are expected to commence in 2021 and are not included in the tables above.

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