Leases

6 Months Ended

Sep. 30, 2023

LEASES

The Company applies Accounting Standards Codification Topic 842, Leases, ("ASC 842") to its leases. 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. As of September 30, 2023, operating ROU lease assets and related lease liabilities totaled $11.1 million and $11.9 million, respectively.

As the implicit rates of the Company's existing leases are not readily determinable, the incremental borrowing 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, 2023, the Company had $133 thousand and $136 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 three and six months ended September 30, 2023:


	September 30, 2023
Weighted-average remaining lease term
Operating leases	4.8 years
Finance lease	2.5 years

Weighted-average discount rate
Operating leases	3.04	%
Finance lease	4.32	%


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2023		2022		2023		2022
Operating lease expense	$	692	$	716	$	1,384	$	1,432

Finance lease cost
Amortization of right-of use asset	37		15		65		32
Interest on lease liability	2		1		4		2

Cash paid for amounts included in the measurement of lease liabilities
Operating leases	711		696		1,422		1,392
Finance lease	35		19		62		38

Maturities of lease liabilities at September 30, 2023 are as follows:


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2024	$	1,468	$	33
2025	2,705		63
2026	2,687		42
2027	2,440		5
2028	2,259		—
Thereafter	1,276		—
Total lease payments	12,835		143
Interest	(924)		(7)
Lease liability	$	11,911	$	136