Leases

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At March 31, 2021, the Company had one lease that had not yet commenced for which it had created a ROU asset and a lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheets. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	March 31, 2021			June 30, 2020
ROU assets	$	6,208		$	4,601
Lease liabilities	6,227			4,590
Weighted-average remaining lease terms (years)	4.39			5.02
Weighted-average discount rate	2.82		%	2.97		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	351
2022	1,399
2023	1,347
2024	876
2025	492
Thereafter	2,746
Total of future minimum payments	$	7,211

The following table presents components of operating lease expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense)	$	444	$	436	$	1,335	$	1,368
Sublease income (included in other, net noninterest income)	(47)		(61)		(169)		(181)
Total operating lease expense, net	$	397	$	375	$	1,166	$	1,187

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at March 31, 2021 and June 30, 2020 and is included in other assets. The corresponding lease liability totaled $1,813 and $1,843 at March 31, 2021 and June 30, 2020, respectively, and is included in other liabilities. For the three and nine months ended March 31, 2021, interest expense on the lease liability totaled $24 and $71, respectively. For the three and nine months ended March 31, 2020, interest expense on the lease liability totaled $24 and $73, respectively.The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	33
2022	134
2023	134
2024	145
2025	146
Thereafter	1,848
Total minimum lease payments	2,440
Less: amount representing interest	(627)
Present value of net minimum lease payments	$	1,813

Supplemental lease cash flow information for the nine months ended March 31, 2021 and 2020:

	2021		2020
ROU assets - noncash additions (operating leases)	$	599	$	5,296
ROU assets - noncash addition (finance lease)	—		2,052
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	1,632		1,609
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	100		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from 1 to 5 years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $24,917 and $21,595 with a residual value of $15,596 and $12,370 as of March 31, 2021 and June 30, 2020, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease income	$	1,432	$	989	$	4,107	$	2,215
Depreciation expense	1,417		746		4,371		1,554

The following schedule summarizes aggregate future minimum operating lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	1,494
2022	5,224
2023	3,378
2024	1,286
2025	434
Thereafter	131
Total of future minimum payments	$	11,947

As Lessor - Finance Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment. For the three months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $638 and $420, respectively. For the nine months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,736 and $1,121, respectively.

The following table presents components of finance lease net investment included within equipment finance class of financing receivables:

	March 31, 2021		June 30, 2020
Lease receivables	$	56,720	$	44,927

The following schedule summarizes aggregate future minimum finance lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	2,917
2022	16,038
2023	15,504
2024	13,342
2025	9,359
Thereafter	4,875
Total minimum payments	62,035
Less: amount representing interest	(5,315)
Total	$	56,720

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At March 31, 2021, the Company had one lease that had not yet commenced for which it had created a ROU asset and a lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheets. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	March 31, 2021			June 30, 2020
ROU assets	$	6,208		$	4,601
Lease liabilities	6,227			4,590
Weighted-average remaining lease terms (years)	4.39			5.02
Weighted-average discount rate	2.82		%	2.97		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	351
2022	1,399
2023	1,347
2024	876
2025	492
Thereafter	2,746
Total of future minimum payments	$	7,211

The following table presents components of operating lease expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense)	$	444	$	436	$	1,335	$	1,368
Sublease income (included in other, net noninterest income)	(47)		(61)		(169)		(181)
Total operating lease expense, net	$	397	$	375	$	1,166	$	1,187

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at March 31, 2021 and June 30, 2020 and is included in other assets. The corresponding lease liability totaled $1,813 and $1,843 at March 31, 2021 and June 30, 2020, respectively, and is included in other liabilities. For the three and nine months ended March 31, 2021, interest expense on the lease liability totaled $24 and $71, respectively. For the three and nine months ended March 31, 2020, interest expense on the lease liability totaled $24 and $73, respectively.The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	33
2022	134
2023	134
2024	145
2025	146
Thereafter	1,848
Total minimum lease payments	2,440
Less: amount representing interest	(627)
Present value of net minimum lease payments	$	1,813

Supplemental lease cash flow information for the nine months ended March 31, 2021 and 2020:

	2021		2020
ROU assets - noncash additions (operating leases)	$	599	$	5,296
ROU assets - noncash addition (finance lease)	—		2,052
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	1,632		1,609
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	100		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from 1 to 5 years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $24,917 and $21,595 with a residual value of $15,596 and $12,370 as of March 31, 2021 and June 30, 2020, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease income	$	1,432	$	989	$	4,107	$	2,215
Depreciation expense	1,417		746		4,371		1,554

The following schedule summarizes aggregate future minimum operating lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	1,494
2022	5,224
2023	3,378
2024	1,286
2025	434
Thereafter	131
Total of future minimum payments	$	11,947

As Lessor - Finance Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment. For the three months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $638 and $420, respectively. For the nine months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,736 and $1,121, respectively.

The following table presents components of finance lease net investment included within equipment finance class of financing receivables:

	March 31, 2021		June 30, 2020
Lease receivables	$	56,720	$	44,927

The following schedule summarizes aggregate future minimum finance lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	2,917
2022	16,038
2023	15,504
2024	13,342
2025	9,359
Thereafter	4,875
Total minimum payments	62,035
Less: amount representing interest	(5,315)
Total	$	56,720

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At March 31, 2021, the Company had one lease that had not yet commenced for which it had created a ROU asset and a lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheets. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	March 31, 2021			June 30, 2020
ROU assets	$	6,208		$	4,601
Lease liabilities	6,227			4,590
Weighted-average remaining lease terms (years)	4.39			5.02
Weighted-average discount rate	2.82		%	2.97		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	351
2022	1,399
2023	1,347
2024	876
2025	492
Thereafter	2,746
Total of future minimum payments	$	7,211

The following table presents components of operating lease expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense)	$	444	$	436	$	1,335	$	1,368
Sublease income (included in other, net noninterest income)	(47)		(61)		(169)		(181)
Total operating lease expense, net	$	397	$	375	$	1,166	$	1,187

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at March 31, 2021 and June 30, 2020 and is included in other assets. The corresponding lease liability totaled $1,813 and $1,843 at March 31, 2021 and June 30, 2020, respectively, and is included in other liabilities. For the three and nine months ended March 31, 2021, interest expense on the lease liability totaled $24 and $71, respectively. For the three and nine months ended March 31, 2020, interest expense on the lease liability totaled $24 and $73, respectively.The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	33
2022	134
2023	134
2024	145
2025	146
Thereafter	1,848
Total minimum lease payments	2,440
Less: amount representing interest	(627)
Present value of net minimum lease payments	$	1,813

Supplemental lease cash flow information for the nine months ended March 31, 2021 and 2020:

	2021		2020
ROU assets - noncash additions (operating leases)	$	599	$	5,296
ROU assets - noncash addition (finance lease)	—		2,052
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	1,632		1,609
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	100		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from 1 to 5 years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $24,917 and $21,595 with a residual value of $15,596 and $12,370 as of March 31, 2021 and June 30, 2020, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease income	$	1,432	$	989	$	4,107	$	2,215
Depreciation expense	1,417		746		4,371		1,554

The following schedule summarizes aggregate future minimum operating lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	1,494
2022	5,224
2023	3,378
2024	1,286
2025	434
Thereafter	131
Total of future minimum payments	$	11,947

As Lessor - Finance Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment. For the three months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $638 and $420, respectively. For the nine months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,736 and $1,121, respectively.

The following table presents components of finance lease net investment included within equipment finance class of financing receivables:

	March 31, 2021		June 30, 2020
Lease receivables	$	56,720	$	44,927

The following schedule summarizes aggregate future minimum finance lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	2,917
2022	16,038
2023	15,504
2024	13,342
2025	9,359
Thereafter	4,875
Total minimum payments	62,035
Less: amount representing interest	(5,315)
Total	$	56,720

Leases

Leases

As Lessee - Operating Leases

The Company's operating leases primarily include office space and bank branches. Certain leases include one or more options to renew, with renewal terms that can extend the lease term up to 15 additional years. The exercise of lease renewal options is at management's sole discretion. When it is reasonably certain that the Company will exercise its option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At March 31, 2021, the Company had one lease that had not yet commenced for which it had created a ROU asset and a lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's lease agreements include periodic rate adjustments for inflation. The depreciable life of ROU assets and leasehold improvements are limited to the shorter of the useful life or the expected lease term. Leases with an initial term of 12 months or less are not recorded on the Company's Consolidated Balance Sheets. The Company recognizes lease expenses for these leases over the lease term.

The following table presents supplemental balance sheet information related to operating leases. ROU assets are included in other assets and lease liabilities are included in other liabilities.

Supplemental Balance Sheet Information:	March 31, 2021			June 30, 2020
ROU assets	$	6,208		$	4,601
Lease liabilities	6,227			4,590
Weighted-average remaining lease terms (years)	4.39			5.02
Weighted-average discount rate	2.82		%	2.97		%

The following schedule summarizes aggregate future minimum lease payments under these operating leases at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	351
2022	1,399
2023	1,347
2024	876
2025	492
Thereafter	2,746
Total of future minimum payments	$	7,211

The following table presents components of operating lease expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease cost (included in occupancy expense)	$	444	$	436	$	1,335	$	1,368
Sublease income (included in other, net noninterest income)	(47)		(61)		(169)		(181)
Total operating lease expense, net	$	397	$	375	$	1,166	$	1,187

As Lessee - Finance Lease

The Company currently leases land for one of its branch office locations under a finance lease. The ROU asset for the finance lease totaled $2,052 at March 31, 2021 and June 30, 2020 and is included in other assets. The corresponding lease liability totaled $1,813 and $1,843 at March 31, 2021 and June 30, 2020, respectively, and is included in other liabilities. For the three and nine months ended March 31, 2021, interest expense on the lease liability totaled $24 and $71, respectively. For the three and nine months ended March 31, 2020, interest expense on the lease liability totaled $24 and $73, respectively.The finance lease has a maturity date of July 2028 and a discount rate of 5.18%.

The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	33
2022	134
2023	134
2024	145
2025	146
Thereafter	1,848
Total minimum lease payments	2,440
Less: amount representing interest	(627)
Present value of net minimum lease payments	$	1,813

Supplemental lease cash flow information for the nine months ended March 31, 2021 and 2020:

	2021		2020
ROU assets - noncash additions (operating leases)	$	599	$	5,296
ROU assets - noncash addition (finance lease)	—		2,052
Cash paid for amounts included in the measurement of lease liabilities (operating leases)	1,632		1,609
Cash paid for amounts included in the measurement of lease liabilities (finance leases)	100		67

As Lessor - General

The Company leases equipment to commercial end users under operating and finance lease arrangements. The Company's equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of its operating and finance leases offer the lessee the option to purchase the equipment at fair value or for a nominal fixed purchase option; and most of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond initial contractual terms. The Company's leases do not include early termination options, and continued rent payments are due if leased equipment is not returned at the end of the lease.

As Lessor - Operating Leases

Operating lease income is recognized as a component of noninterest income on a straight-line basis over the lease term. Lease terms range from 1 to 5 years. Assets related to operating leases are included in other assets and the corresponding depreciation expense is recorded on a straight-line basis as a component of other noninterest expense. The net book value of leased assets totaled $24,917 and $21,595 with a residual value of $15,596 and $12,370 as of March 31, 2021 and June 30, 2020, respectively.

The following table presents total equipment finance operating lease income and depreciation expense for the three and nine months ended March 31, 2021 and 2020:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Operating lease income	$	1,432	$	989	$	4,107	$	2,215
Depreciation expense	1,417		746		4,371		1,554

The following schedule summarizes aggregate future minimum operating lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	1,494
2022	5,224
2023	3,378
2024	1,286
2025	434
Thereafter	131
Total of future minimum payments	$	11,947

As Lessor - Finance Leases

Finance lease income is recognized as a component of loan interest income over the lease term. The finance leases are included as a component of the equipment finance class of financing receivables under the commercial loan segment. For the three months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $638 and $420, respectively. For the nine months ended March 31, 2021 and 2020, total interest income on equipment finance leases totaled $1,736 and $1,121, respectively.

The following table presents components of finance lease net investment included within equipment finance class of financing receivables:

	March 31, 2021		June 30, 2020
Lease receivables	$	56,720	$	44,927

The following schedule summarizes aggregate future minimum finance lease payments to be received at March 31, 2021:

Fiscal year ending June 30:
Remaining 2021	$	2,917
2022	16,038
2023	15,504
2024	13,342
2025	9,359
Thereafter	4,875
Total minimum payments	62,035
Less: amount representing interest	(5,315)
Total	$	56,720