Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

12. Leases

Substantially all of the leases in which the Corporation is the lessee are comprised of real estate property for branches, ATM locations, and office equipment with terms extending through 2030. All of the Corporation’s leases are classified as operating leases. The present value of lease payments is reported as a lease liability and right of use asset on the Corporation’s Consolidated Statement of Financial Condition.

The following table represents the Consolidated Statements of Financial Condition classification of the Corporation’s ROU assets and lease liabilities. The Corporation elected not to include short-term leases (i.e., leases with remaining terms of 12 months or less), or equipment leases that were deemed immaterial on the Consolidated Statement of Financial Condition.

(in thousands)	December 31, 2021		December 31, 2020
Lease Right-of Use Assets
Operating lease right-of-use assets	$	2,247	$	2,408
Lease Liabilities
Operating lease liabilities	$	2,761	$	2,958

In calculating the present value of the lease payments, the Corporation has utilized its incremental borrowing rate based on electing the original lease term to account for each lease component.

The following table presents the weighted-average lease term and discount rate for operating leases at December 31, 2021:

	December 31, 2021	December 31, 2020
Weighted-average remaining lease term
Operating leases	6.89 years	7.77 years
Weighted-average discount rate
Operating leases	5.03%	5.06%

The Corporation elected, for all classes of underlying assets, to separate lease and non-lease components. Total operating lease expense was $0.5 million for the year ended December 31, 2021 and December 31, 2020.  Short-term lease expense was $20 thousand for the year ended December 31, 2021 and December 31, 2020.

Future minimum payments for operating leases with initial or remaining terms of one year or more at December 31, 2021 were as follows:

(in thousands)	Amount
2022	$	518
2023		457
2024		457
2025		457
2026		403
Thereafter		1,005
Total future minimum lease payments		3,297
Amounts representing interest		(536)
Present value of net future minimum lease payments	$	2,761