LEASES

3 Months Ended

Jun. 30, 2022

LEASESAccounting Policies and Matters Requiring Management's Judgment

The Company uses its effective annual interest rate, adjusted for certain assumptions, as the discount rate when evaluating leases under Topic 842. Management applies the adjusted effective annual interest rate to leases entered for the entirety of the subsequent year.

Based on its historical practice, the Company believes it is reasonably certain to exercise a given option associated with a given office space lease. Therefore, the Company classifies all lease options for office space as “reasonably certain” unless it has specific knowledge to the contrary for a given lease. The Company generally does not believe it is reasonably certain to exercise any options associated with its office equipment leases.

Periodic Disclosures

The Company's operating leases consist of real estate leases for office space as well as office equipment. Both the branch real estate and office equipment lease terms generally range from three years to five years, and generally contain options to extend which mirror the original terms of the lease. The Company's finance leases consist of IT equipment which have a three year lease term and do not contain an option to extend the lease term.

The following table reports information about the Company's lease cost for the three months ended June 30, 2022 and 2021:


	Three months ended June 30,
		2022		2021
Lease Cost
Finance lease cost		$	103,302	$	110,429
Amortization of right-of-use assets		102,278		101,906
Interest on lease liabilities		1,024		8,523
Operating lease cost		$	6,662,311	$	6,824,446

Variable lease cost		931,084		932,363

Total lease cost		$	7,696,697	$	7,867,238

The following table reports other information about the Company's leases for the three months ended June 30, 2022 and 2021:


	Three months ended June 30,
	2022			2021
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	6,724,592		$	6,974,357
Operating cash flows from finance leases	1,024			8,523
Operating cash flows from operating leases	6,689,425			6,811,215
Financing cash flows from finance leases	34,143			154,619
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—		$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,352,690		$	3,455,876
Weighted-average remaining lease term — finance leases	0.4 years			0.7 years
Weighted average remaining lease term — operating leases	7.2 years			7.2 years
Weighted-average discount rate (monthly) — finance leases	6.0		%	6.4		%
Weighted-average discount rate — operating leases	6.1		%	6.2		%

The aggregate annual lease obligations as of June 30, 2022, are as follows:


	Operating		Finance

Remainder of 2023	$	18,465,836	$	45,924
2024	21,227,434		—
2025	16,594,152		—
2026	13,076,778		—
2027	8,719,947		—
Thereafter	32,314,165		—
Total undiscounted lease liability	$	110,398,312	$	45,924
Imputed interest	22,094,574		—
Total discounted lease liability	$	88,303,738	$	45,924

The Company had no leases with related parties at June 30, 2022 or March 31, 2022.