XML 17 R18.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 3 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
Leases | Leases As Lessee - Operating Leases Company 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 our sole discretion. When it is reasonably certain that we will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At September 30, 2019, we did not have any leases that had not yet commenced for which we had created a ROU asset and a lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of our 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 our Consolidated Balance Sheets; we recognize lease expenses for these leases over the lease term. The following tables present 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: | September 30, 2019
ROU assets | $ | 5,105 |
Lease liabilities | 5,102 |
Weighted-average remaining lease terms | 5.45 |
Weighted-average discount rate | 3.13 | %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,003 |
2021 | 1,123 |
2022 | 1,026 |
2023 | 989 |
2022 | 522 |
Thereafter | 896 |
Total of future minimum payments | $ | 5,559 |
The following table presents components of operating lease expense for the three months ended September 30, 2019:
Operating lease cost (included in occupancy expense) | $ | 473 |
Sublease income (included in other, net noninterest income) | (64 | )
Total operating lease expense, net | 409 |
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 September 30, 2019 and is included in other assets. The amount was previously recorded in premises and equipment, net. The corresponding lease liability totaled $1,870 at September 30, 2019 and is included in other liabilities. Interest expense on the lease liability totaled $24 for the three months ended September 30, 2019. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%. Upon adoption of ASC 842, the capital lease obligation for June 30, 2019 was also reclassified to other liabilities. The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 100 |
2021 | 134 |
2022 | 134 |
2023 | 134 |
2023 | 145 |
Thereafter | 1,993 |
Total minimum lease payments | 2,640 |
Less: amount representing interest | (770 | )
Present value of net minimum lease payments | $ | 1,870 |
Supplemental lease cash flow information for the three months ended September 30, 2019:
ROU assets - noncash additions (operating leases) | $ | 5,296 |
ROU assets - noncash addition (finance lease) | 2,052 |
Cash paid for amounts included in the measurement of lease liabilities (operating leases) | 558 |
Cash paid for amounts included in the measurement of lease liabilities (finance leases) | 33 |
As Lessor - General The Company leases equipment to commercial end users under operating and finance lease arrangements. Our equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of our 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. Our 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 4 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. Leased assets totaled $11,252 with a residual value of $6,450 as of September 30, 2019. For the three months ended September 30, 2019, total equipment finance operating lease income totaled $568 and depreciation expense totaled $350. The following schedule summarizes aggregate future minimum operating lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,823 |
2021 | 5,423 |
2022 | 2,540 |
2023 | 1,746 |
2022 | 663 |
Thereafter | — |
Total of future minimum payments | $ | 12,195 |
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 September 30, 2019, total interest income on equipment finance leases totaled $319. The following table presents components of finance lease net investment included within equipment finance class of financing receivables:
| September 30, 2019
Lease receivables | $ | 25,145 |
The following schedule summarizes aggregate future minimum finance lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 5,240 |
2021 | 6,927 |
2022 | 6,093 |
2023 | 5,494 |
2024 | 3,244 |
Thereafter | 994 |
Total minimum payments | 27,992 |
Less: amount representing interest | (2,847 | )
Total | $ | 25,145 |
Leases | Leases As Lessee - Operating Leases Company 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 our sole discretion. When it is reasonably certain that we will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At September 30, 2019, we did not have any leases that had not yet commenced for which we had created a ROU asset and a lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of our 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 our Consolidated Balance Sheets; we recognize lease expenses for these leases over the lease term. The following tables present 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: | September 30, 2019
ROU assets | $ | 5,105 |
Lease liabilities | 5,102 |
Weighted-average remaining lease terms | 5.45 |
Weighted-average discount rate | 3.13 | %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,003 |
2021 | 1,123 |
2022 | 1,026 |
2023 | 989 |
2022 | 522 |
Thereafter | 896 |
Total of future minimum payments | $ | 5,559 |
The following table presents components of operating lease expense for the three months ended September 30, 2019:
Operating lease cost (included in occupancy expense) | $ | 473 |
Sublease income (included in other, net noninterest income) | (64 | )
Total operating lease expense, net | 409 |
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 September 30, 2019 and is included in other assets. The amount was previously recorded in premises and equipment, net. The corresponding lease liability totaled $1,870 at September 30, 2019 and is included in other liabilities. Interest expense on the lease liability totaled $24 for the three months ended September 30, 2019. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%. Upon adoption of ASC 842, the capital lease obligation for June 30, 2019 was also reclassified to other liabilities. The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 100 |
2021 | 134 |
2022 | 134 |
2023 | 134 |
2023 | 145 |
Thereafter | 1,993 |
Total minimum lease payments | 2,640 |
Less: amount representing interest | (770 | )
Present value of net minimum lease payments | $ | 1,870 |
Supplemental lease cash flow information for the three months ended September 30, 2019:
ROU assets - noncash additions (operating leases) | $ | 5,296 |
ROU assets - noncash addition (finance lease) | 2,052 |
Cash paid for amounts included in the measurement of lease liabilities (operating leases) | 558 |
Cash paid for amounts included in the measurement of lease liabilities (finance leases) | 33 |
As Lessor - General The Company leases equipment to commercial end users under operating and finance lease arrangements. Our equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of our 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. Our 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 4 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. Leased assets totaled $11,252 with a residual value of $6,450 as of September 30, 2019. For the three months ended September 30, 2019, total equipment finance operating lease income totaled $568 and depreciation expense totaled $350. The following schedule summarizes aggregate future minimum operating lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,823 |
2021 | 5,423 |
2022 | 2,540 |
2023 | 1,746 |
2022 | 663 |
Thereafter | — |
Total of future minimum payments | $ | 12,195 |
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 September 30, 2019, total interest income on equipment finance leases totaled $319. The following table presents components of finance lease net investment included within equipment finance class of financing receivables:
| September 30, 2019
Lease receivables | $ | 25,145 |
The following schedule summarizes aggregate future minimum finance lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 5,240 |
2021 | 6,927 |
2022 | 6,093 |
2023 | 5,494 |
2024 | 3,244 |
Thereafter | 994 |
Total minimum payments | 27,992 |
Less: amount representing interest | (2,847 | )
Total | $ | 25,145 |
Leases | Leases As Lessee - Operating Leases Company 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 our sole discretion. When it is reasonably certain that we will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At September 30, 2019, we did not have any leases that had not yet commenced for which we had created a ROU asset and a lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of our 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 our Consolidated Balance Sheets; we recognize lease expenses for these leases over the lease term. The following tables present 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: | September 30, 2019
ROU assets | $ | 5,105 |
Lease liabilities | 5,102 |
Weighted-average remaining lease terms | 5.45 |
Weighted-average discount rate | 3.13 | %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,003 |
2021 | 1,123 |
2022 | 1,026 |
2023 | 989 |
2022 | 522 |
Thereafter | 896 |
Total of future minimum payments | $ | 5,559 |
The following table presents components of operating lease expense for the three months ended September 30, 2019:
Operating lease cost (included in occupancy expense) | $ | 473 |
Sublease income (included in other, net noninterest income) | (64 | )
Total operating lease expense, net | 409 |
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 September 30, 2019 and is included in other assets. The amount was previously recorded in premises and equipment, net. The corresponding lease liability totaled $1,870 at September 30, 2019 and is included in other liabilities. Interest expense on the lease liability totaled $24 for the three months ended September 30, 2019. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%. Upon adoption of ASC 842, the capital lease obligation for June 30, 2019 was also reclassified to other liabilities. The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 100 |
2021 | 134 |
2022 | 134 |
2023 | 134 |
2023 | 145 |
Thereafter | 1,993 |
Total minimum lease payments | 2,640 |
Less: amount representing interest | (770 | )
Present value of net minimum lease payments | $ | 1,870 |
Supplemental lease cash flow information for the three months ended September 30, 2019:
ROU assets - noncash additions (operating leases) | $ | 5,296 |
ROU assets - noncash addition (finance lease) | 2,052 |
Cash paid for amounts included in the measurement of lease liabilities (operating leases) | 558 |
Cash paid for amounts included in the measurement of lease liabilities (finance leases) | 33 |
As Lessor - General The Company leases equipment to commercial end users under operating and finance lease arrangements. Our equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of our 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. Our 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 4 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. Leased assets totaled $11,252 with a residual value of $6,450 as of September 30, 2019. For the three months ended September 30, 2019, total equipment finance operating lease income totaled $568 and depreciation expense totaled $350. The following schedule summarizes aggregate future minimum operating lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,823 |
2021 | 5,423 |
2022 | 2,540 |
2023 | 1,746 |
2022 | 663 |
Thereafter | — |
Total of future minimum payments | $ | 12,195 |
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 September 30, 2019, total interest income on equipment finance leases totaled $319. The following table presents components of finance lease net investment included within equipment finance class of financing receivables:
| September 30, 2019
Lease receivables | $ | 25,145 |
The following schedule summarizes aggregate future minimum finance lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 5,240 |
2021 | 6,927 |
2022 | 6,093 |
2023 | 5,494 |
2024 | 3,244 |
Thereafter | 994 |
Total minimum payments | 27,992 |
Less: amount representing interest | (2,847 | )
Total | $ | 25,145 |
Leases | Leases As Lessee - Operating Leases Company 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 our sole discretion. When it is reasonably certain that we will exercise our option to renew or extend the lease term, that option is included in estimating the value of the ROU and lease liability. At September 30, 2019, we did not have any leases that had not yet commenced for which we had created a ROU asset and a lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of our 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 our Consolidated Balance Sheets; we recognize lease expenses for these leases over the lease term. The following tables present 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: | September 30, 2019
ROU assets | $ | 5,105 |
Lease liabilities | 5,102 |
Weighted-average remaining lease terms | 5.45 |
Weighted-average discount rate | 3.13 | %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,003 |
2021 | 1,123 |
2022 | 1,026 |
2023 | 989 |
2022 | 522 |
Thereafter | 896 |
Total of future minimum payments | $ | 5,559 |
The following table presents components of operating lease expense for the three months ended September 30, 2019:
Operating lease cost (included in occupancy expense) | $ | 473 |
Sublease income (included in other, net noninterest income) | (64 | )
Total operating lease expense, net | 409 |
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 September 30, 2019 and is included in other assets. The amount was previously recorded in premises and equipment, net. The corresponding lease liability totaled $1,870 at September 30, 2019 and is included in other liabilities. Interest expense on the lease liability totaled $24 for the three months ended September 30, 2019. The finance lease has a maturity date of July 2028 and a discount rate of 5.18%. Upon adoption of ASC 842, the capital lease obligation for June 30, 2019 was also reclassified to other liabilities. The following schedule summarizes aggregate future minimum lease payments under this finance lease obligation at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 100 |
2021 | 134 |
2022 | 134 |
2023 | 134 |
2023 | 145 |
Thereafter | 1,993 |
Total minimum lease payments | 2,640 |
Less: amount representing interest | (770 | )
Present value of net minimum lease payments | $ | 1,870 |
Supplemental lease cash flow information for the three months ended September 30, 2019:
ROU assets - noncash additions (operating leases) | $ | 5,296 |
ROU assets - noncash addition (finance lease) | 2,052 |
Cash paid for amounts included in the measurement of lease liabilities (operating leases) | 558 |
Cash paid for amounts included in the measurement of lease liabilities (finance leases) | 33 |
As Lessor - General The Company leases equipment to commercial end users under operating and finance lease arrangements. Our equipment finance leases consist mainly of transportation, medical, and agricultural equipment. Many of our 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. Our 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 4 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. Leased assets totaled $11,252 with a residual value of $6,450 as of September 30, 2019. For the three months ended September 30, 2019, total equipment finance operating lease income totaled $568 and depreciation expense totaled $350. The following schedule summarizes aggregate future minimum operating lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 1,823 |
2021 | 5,423 |
2022 | 2,540 |
2023 | 1,746 |
2022 | 663 |
Thereafter | — |
Total of future minimum payments | $ | 12,195 |
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 September 30, 2019, total interest income on equipment finance leases totaled $319. The following table presents components of finance lease net investment included within equipment finance class of financing receivables:
| September 30, 2019
Lease receivables | $ | 25,145 |
The following schedule summarizes aggregate future minimum finance lease payments to be received at September 30, 2019:
Fiscal year ending June 30: |
Remaining 2020 | $ | 5,240 |
2021 | 6,927 |
2022 | 6,093 |
2023 | 5,494 |
2024 | 3,244 |
Thereafter | 994 |
Total minimum payments | 27,992 |
Less: amount representing interest | (2,847 | )
Total | $ | 25,145 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of lessor's direct financing leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
Name: | us-gaap_LessorDirectFinancingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration