Leases

12 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LeasesThe Company adopted ASC 842 on October 1, 2019 and began recording operating lease liabilities and operating lease ROU assets in 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 ten months to ten years, some of which include options to extend the leases for up to five years. Lease extensions are not certain and the Company evaluates each lease based on the specific circumstances for the location to determine the probability of exercising the extensions in the calculation of ROU.

The components of lease cost (included in the premises and equipment expense category in the consolidated statements of income) are as follows for the years ended September 30, 2021 and 2020 (dollars in thousands):

Lease cost:	2021		2020
Operating lease cost	$	395	$	377
Short-term lease cost	—		—
Total lease cost	$	395	$	377

Lease expense was $322,000 for the year ended September 30, 2019.

The following table provides supplemental information related to operating leases at or for the years ended September 30, 2021 and 2020 (dollars in thousands):

	2021				2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	327			$	318
Weighted average remaining lease term-operating leases	8.44			years	9.24			years
Weighted average discount rate-operating leases	2.24		%		2.22		%

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

Maturities of operating lease liabilities at September 30, 2021 for fiscal years ended subsequent to September 30, 2021 are as follows (dollars in thousands):

2022	$	342
2023	310
2024	313
2025	317
2026	284
Thereafter	1,038
Total lease payments	2,604
Less imputed interest	245
Total	$	2,359