Leases

6 Months Ended

Mar. 31, 2021

LEASES

The Company adopted Financial Accounting Standard Board ("FASB") Accounting Standards Codification ("ASC") 842, Leases ("ASC 842") on October 1, 2019 and began recording operating lease liabilities and operating lease ROU assets on the consolidated balance sheets. The Company has operating leases for three retail bank branch offices. The ROU assets totaled $2.89 million at October 1, 2019. The Company's leases have remaining lease terms of nineteen months to eleven years, some of which include options to extend the leases for up to five years.

The components of lease cost (included in the premises and equipment expense category in the consolidated statements of income) are as follows for the three and six months ended March 31, 2021 and 2020 (dollars in thousands):


	Three Months Ended March 31, 2021		Six Months Ended March 31, 2021
Lease cost:
Operating lease cost	$	92	$	185
Short-term lease cost	—		—
Total lease cost	$	92	$	185


	Three Months Ended March 31, 2020		Six Months Ended March 31, 2020
Lease cost:
Operating lease cost	$	83	$	166
Short-term lease cost	—		—
Total lease cost	$	83	$	166

The following table provides supplemental information to operating leases for the three and six months ended March 31, 2021 and 2020 (dollars in thousands):


	At or For Three Months Ended March 31, 2021				At or For Six Months Ended March 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	80			$	160
Weighted average remaining lease term-operating leases	8.8			years	8.8			years
Weighted average discount rate-operating leases	2.23		%		2.23		%

	At or For Three Months Ended March 31, 2020				At or For Six Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	80			$	158
Weighted average remaining lease term-operating leases	9.7			years	9.7			years
Weighted average discount rate-operating leases	2.22		%		2.22		%

The Company's leases typically do not contain a discount rate implicit in the lease contracts. As an alternative, the weighted average discount rate used to value the future value of lease payments due in calculating the value of the ROU asset and lease liability was determined by utilizing the September 30, 2019 fixed-rate advances issued by the FHLB, for all leases entered into prior to the October 1, 2019 adoption date.

Maturities of operating lease liabilities at March 31, 2021 for future fiscal years are as follows (dollars in thousands):


Remainder of 2021	$	167
2022	342
2023	310
2024	313
2025	317
Thereafter	1,322
Total lease payments	2,771
Less imputed interest	272
Total	$	2,499