Leases

6 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Note 15 – Leases

          The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities on our consolidated balance sheets. ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, in order to determine the present value of future payments for office leases we used our incremental borrowing rate based on the FHLB liquidity and funding rates. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

           As of March 31, 2020, the Company leases a financial center in Glen Mills, Pennsylvania and private banking offices in Villanova, West Chester and Quakertown, Pennsylvania; one private banking office in New Castle County located in Montchanin, Delaware; one private banking office in Morris County located in Morristown, New Jersey; one private banking office in Palm Beach County located in Palm Beach, Florida; one representative office located in Wellington, Florida; and one representative office in Allentown, Pennsylvania. The Company has elected not to recognize ROU assets and lease liabilities for two private banking office leases and two representative office leases whose terms are twelve months or less and are considered short-term leases. All of the financial center leases and two private banking office leases include options to extend for terms of five years. These options have not been recognized as part of our ROU assets and lease liabilities as the Company is not reasonably certain to exercise these options. The Company has also entered into three leases for office equipment for which ROU assets and lease liabilities have been recognized. All the aforementioned leases have been accounted for as operating leases.

The components of lease expense were as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2020		2019		2020		2019
	(In thousands)				(In thousands)
Operating lease cost	$	173	$	119	$	348	$	235
Finance lease cost		-		-		-		-
Short-term lease cost		28		15		53		30
Total	$	201	$	134	$	401	$	265

Supplemental information related to leases was as follows:

	March 31, 2020
	(Dollars in thousands)
Supplemental balance sheet information
Operating lease right-of-use assets	$	2,959
Operating lease liabilities	$	2,976
Weighted average remaining lease term	5.74 years
Weighted average discount rate		1.98	%
	Six Months Ended March 31, 2020
	(In thousands)
Supplemental cash flow information
Operating cash flows from operating leases	$	332
ROU assets obtained in exchange for lease obligations	$	3,279

Maturities of lease liabilities were as follows:

	Operating Leases
	(In thousands)
Period Ending September 30,
Remainder of 2020	$	338
2021		601
2022		492
2023		474
2024		474
Thereafter		746
Total lease payments	$	3,125
Less: imputed interest		(149	)
Total	$	2,976