Leases

12 Months Ended

Mar. 31, 2020

LEASES

On April 1, 2019, the Company adopted Topic 842 and all subsequent ASUs that modified Topic 842. The Company has operating leases related to its administrative offices, seven retail branches and four 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 $20.0 million right-of-use ("ROU") assets and corresponding operating lease liabilities upon adoption. As of March 31, 2020, operating ROU lease assets and related lease liabilities totaled $17.6 million and $18.2 million, respectively.

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 March 31, 2020, the Company had $182 thousand and $170 thousand of ROU asset and lease liability, respectively, for finance leases 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 year ended March 31, 2020:


	March 31, 2020
Weighted-average remaining lease term
Operating leases	7.8 years
Finance lease	2.8 years

Weighted-average discount rate
Operating leases	3.00	%
Finance lease	1.84	%


$ in thousands	March 31, 2020
Operating lease expense	$	2,925

Finance lease cost
Amortization of right-of use asset	34
Interest on lease liability	2

Cash paid for amounts included in the measurement of lease liabilities
Operating leases	2,770
Finance lease	44

Maturities of lease liabilities at March 31, 2020 are as follows:


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2021	$	2,700	$	69
2022	2,600		69
2023	2,462		28
2024	2,535		8
2025	2,318		—
Thereafter	7,913		—
Total lease payments	20,528		174
Interest	(2,375)		(4)
Lease liability	$	18,153	$	170

Under the legacy GAAP as of March 31, 2019, the Company's minimum annual rental commitments under all non-cancelable leases with initial or remaining terms of more than one year are as follows:


$ in thousands
Year Ending March 31,
2020	$	2,761
2021	2,686
2022	2,428
2023	2,290
2024	2,289
Thereafter	8,572
	$	21,026