Premises, Equipment and Leases

12 Months Ended

Sep. 30, 2021

Property, Plant and Equipment, Net [Abstract]

Premises And Equipment, Net

PREMISES, EQUIPMENT AND LEASES

A summary of the net carrying value of premises and equipment at September 30, 2021 and 2020 was as follows:

	2021		2020
	(Dollars in thousands)
Land	$	15,706	$	16,566
Building and improvements	120,065		116,595
Furniture, fixtures and equipment	57,129		57,504
	192,900		190,665
Less accumulated depreciation	93,773		88,790
	$	99,127	$	101,875

During the current year, management decided to relocate one of the Bank's branches. As a result, the Company classified as held-for-sale and subsequently sold the property where the branch was previously located. The sale of this property resulted in a loss of $940 thousand, which was included in other non-interest expense on the consolidated statements of income.

The Company leases real estate property for branches, ATMs, and certain equipment. These leases have remaining terms that range from one year to 46 years, some of which include exercising renewal options that the Company considers to be reasonably certain. As of September 30, 2021, a right-of-use asset of $12.7 million was included in other assets and a lease liability of $12.8 million was included in other liabilities on the consolidated balance sheets.

As of September 30, 2021, for the Company's operating leases, the weighted average remaining lease term was 21.8 years and the weighted average discount rate was 2.51%.

The following table presents lease expenses and supplemental cash flow information related to the Company's leases for the years indicated.

	For the Year Ended September 30,
	2021		2020
	(Dollars in thousands)
Operating lease expense	$	1,404	$	1,511
Variable lease expense	176		201
Short-term lease expense	2		17
Cash paid for amounts included in the measurement of lease liabilities	1,301		1,357

The following table presents future minimum payments, rounded to the nearest thousand, for operating leases with initial or remaining terms in excess of one year as of September 30, 2021 (dollars in thousands):

Fiscal year 2022	$	1,210
Fiscal year 2023	1,224
Fiscal year 2024	993
Fiscal year 2025	759
Fiscal year 2026	711
Thereafter	13,477
Total future minimum lease payments	18,374
Amounts representing interest	(5,552)
Present value of net future minimum lease payments	$	12,822