LEASES

On April 1, 2019, the Company adopted ASU No, 2016-02, "Leases (Topic 842)" and all subsequent ASUs that modified Topic 842. The Company has operating leases related to its administrative offices, eight retail branches and three ATM centers. Two of the operating leases are for branch locations where the Company had entered into a sale and leaseback transaction. The gain had been calculated utilizing the profit on sale in excess of the present value of the minimum lease payments, and the profit on the sale was deferred from gain recognition to be amortized into income over the terms of the leases in accordance with ASC 840. ASC 842 does not require previous sale and leaseback transactions accounted for under ASC 840 to be reassessed. Because the transactions had no off-market terms, the Company recorded a $5.3 million cumulative effect adjustment to retained earnings to recognize the total deferred gain balance at the adoption date. The implementation of the new standard resulted in the recognition of $20 million right-of-use ("ROU") assets and corresponding operating lease liabilities upon adoption.

As the implicit rates of the Company's existing leases are not readily determinable, the discount rate used in determining the lease liability obligation for each individual lease was the FHLB-NY fixed-rate advance rates based on the remaining lease terms as of April 1, 2019.

As of September 30, 2019, the Company had $158 thousand and $149 thousand of ROU asset and lease liability, respectively, for a finance lease related to equipment. The ROU asset is included in Premises and Equipment, net, and the lease liability is included in Advances from the FHLB-NY and Other Borrowed Money on the statements of financial condition.

The following tables present information about the Company's leases and the related lease costs as of and for the three and six months ended September 30, 2019:



	September 30, 2019
Weighted-average remaining lease term
Operating leases	8.3 years
Finance lease	3.0 years

Weighted-average discount rate
Operating leases	2.99	%
Finance lease	1.75	%



$ in thousands	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Operating lease expense	$	735	$	1,464

Finance lease cost ^(a)
Amortization of right-of use asset	5		5

Cash paid for amounts included in the measurement of lease liabilities
Operating leases	691		1,377
Finance lease	16		16

^(a) Interest on finance lease liability was less than $1 thousand for the three and six months ended September 30, 2019.

Maturities of lease liabilities at September 30, 2019 are as follows:



$ in thousands	Operating Leases			Finance Lease
Year ending March 31,
2020	$	1,384		$	27
2021	2,701			56
2022	2,600			56
2023	2,462			14
2024	2,534			—
Thereafter	10,231			—
Total lease payments	21,912			153
Interest	(2,658		)	(4		)
Lease liability	$	19,254		$	149