Premises, Equipment and Leases

12 Months Ended

Sep. 30, 2024

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, 2024 and 2023 was as follows:

	2024		2023
	(Dollars in thousands)
Land	$	16,070	$	16,045
Building and improvements	128,730		123,830
Furniture, fixtures and equipment	54,485		52,364
Total premises and equipment	199,285		192,239
Less accumulated depreciation	107,822		100,708
Premises and equipment, net	$	91,463	$	91,531

At September 30, 2024, the Company's operating leases had remaining terms that ranged from 0.1 years to 33 years, some of which included the assumed exercise of renewal options that the Company considers to be reasonably certain. A right-of-use asset of $8.5 million and $11.3 million was included in other assets and a lease liability of $8.9 million and $11.6 million was included in other liabilities for the Company's operating leases on the consolidated balance sheets, as of September 30, 2024 and September 30, 2023 respectively. As of September 30, 2024, for the Company's operating leases, the weighted average remaining lease term was 24.1 years and the weighted average discount rate was 2.69%. The following table presents lease expenses and supplemental cash flow information related to the Company's operating leases for the years indicated.

	For the Year Ended September 30,
	2024		2023		2022
	(Dollars in thousands)
Operating lease expense	$	1,141	$	1,307	$	1,397
Variable lease expense	176		189		164
Short-term lease expense	2		41		2
Cash paid for amounts included in the measurement of lease liabilities	1,130		1,211		1,312

The Company entered into finance leases during the current year. The Company's finance leases as of September 30, 2024 had remaining terms that ranged from 3 years to 23 years. A finance lease right-of-use asset of $1.0 million was included in premises and equipment, net and a finance lease liability of $1.1 million was included in borrowings on the consolidated balance sheets, as of September 30, 2024. As of September 30, 2024, for the Company's finance leases, the weighted average remaining lease term was 20.0 years and the weighted average discount rate was 5.17%. During the year ended September 30, 2024, amortization expense of finance lease right-of-use assets, interest expense on finance lease liabilities, and cash paid for amounts included in the measurement of finance lease liabilities was $59 thousand, $53 thousand and $73 thousand, respectively.

The following table presents future minimum payments, for operating and finance leases with initial or remaining terms in excess of one year as of September 30, 2024:

	Operating		Finance		Total
	(Dollars in thousands)
Fiscal year 2025	$	715	$	91	$	806
Fiscal year 2026	648		91		739
Fiscal year 2027	636		91		727
Fiscal year 2028	603		94		697
Fiscal year 2029	435		83		518
Thereafter	9,727		1,386		11,113
Total future minimum lease payments	12,764		1,836		14,600
Amounts representing interest	(3,842)		(754)		(4,596)
Present value of net future minimum lease payments	$	8,922	$	1,082	$	10,004