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Leases
 12 Months Ended
Jun. 30, 2022
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 our option to renew or extend the lease term, that option is included in estimating the value of the ROU and 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 expense 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.
June 30,
20222021
Supplemental balance sheet information
ROU assets$5,846 $5,498 
Lease liabilities$6,641 $5,926 
Weighted-average remaining lease terms (years)10.809.49
Weighted-average discount rate2.90 %3.18 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at June 30, 2022:
Fiscal year ending June 30
2023$1,425 
2024981 
2025680 
2026555 
2027573 
Thereafter3,772 
Total undiscounted minimum lease payments7,986 
Less: amount representing interest(1,345)
Total lease liability$6,641 
The following table presents components of operating lease expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease cost (included in occupancy expense, net)$1,559 $1,637 
Variable lease cost (included in occupancy expense, net)9 24 
Sublease income (included in other noninterest income)(189)(207)
Total operating lease expense, net$1,379 $1,454 
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 June 30, 2022 and 2021 and is included in other assets. The corresponding lease liability totaled $1,763 and $1,804 at June 30, 2022 and 2021, respectively, and is included in other liabilities. For the years ended June 30, 2022 and 2021, interest expense on the lease liability totaled $93 and $95, 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 June 30, 2022:
Fiscal year ending June 30
2023$134 
2024145 
2025146 
2026146 
2027146 
Thereafter1,557 
Total undiscounted minimum lease payments2,274 
Less: amount representing interest(511)
Total lease liability$1,763 
Supplemental lease cash flow information as of the dates indicated:
Year Ended June 30,
20222021
ROU assets - noncash additions (operating leases)$1,186 $2,586 
Cash paid for amounts included in the measurement of lease liabilities (operating leases)1,438 2,036 
Cash paid for amounts included in the measurement of lease liabilities (finance leases)134 134 
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 construction, transportation, healthcare, and manufacturing 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 one to five 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 $20,075 and $25,932 with a residual value of $12,874 and $15,330 as of June 30, 2022 and 2021, respectively.
The following table presents total equipment finance operating lease income and depreciation expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease income$6,392 $5,601 
Depreciation expense5,362 5,864 
The following schedule summarizes aggregate future minimum lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$5,080 
20243,010 
2025998 
2026355 
2027113 
Thereafter— 
Total of future minimum payments$9,556 
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 loans segment of the loan portfolio. For the years ended June 30, 2022 and 2021, total interest income on equipment finance leases totaled $3,057 and $2,444, respectively.
The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.2 million and $63.3 million at June 30, 2022 and 2021, respectively.
The following schedule summarizes aggregate future minimum finance lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$21,287 
202418,615 
202513,772 
20269,299 
20274,578 
Thereafter1,047 
Total undiscounted minimum payments68,598 
Less: amount representing interest(6,410)
Total lease receivable$62,188 
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 our option to renew or extend the lease term, that option is included in estimating the value of the ROU and 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 expense 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.
June 30,
20222021
Supplemental balance sheet information
ROU assets$5,846 $5,498 
Lease liabilities$6,641 $5,926 
Weighted-average remaining lease terms (years)10.809.49
Weighted-average discount rate2.90 %3.18 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at June 30, 2022:
Fiscal year ending June 30
2023$1,425 
2024981 
2025680 
2026555 
2027573 
Thereafter3,772 
Total undiscounted minimum lease payments7,986 
Less: amount representing interest(1,345)
Total lease liability$6,641 
The following table presents components of operating lease expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease cost (included in occupancy expense, net)$1,559 $1,637 
Variable lease cost (included in occupancy expense, net)9 24 
Sublease income (included in other noninterest income)(189)(207)
Total operating lease expense, net$1,379 $1,454 
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 June 30, 2022 and 2021 and is included in other assets. The corresponding lease liability totaled $1,763 and $1,804 at June 30, 2022 and 2021, respectively, and is included in other liabilities. For the years ended June 30, 2022 and 2021, interest expense on the lease liability totaled $93 and $95, 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 June 30, 2022:
Fiscal year ending June 30
2023$134 
2024145 
2025146 
2026146 
2027146 
Thereafter1,557 
Total undiscounted minimum lease payments2,274 
Less: amount representing interest(511)
Total lease liability$1,763 
Supplemental lease cash flow information as of the dates indicated:
Year Ended June 30,
20222021
ROU assets - noncash additions (operating leases)$1,186 $2,586 
Cash paid for amounts included in the measurement of lease liabilities (operating leases)1,438 2,036 
Cash paid for amounts included in the measurement of lease liabilities (finance leases)134 134 
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 construction, transportation, healthcare, and manufacturing 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 one to five 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 $20,075 and $25,932 with a residual value of $12,874 and $15,330 as of June 30, 2022 and 2021, respectively.
The following table presents total equipment finance operating lease income and depreciation expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease income$6,392 $5,601 
Depreciation expense5,362 5,864 
The following schedule summarizes aggregate future minimum lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$5,080 
20243,010 
2025998 
2026355 
2027113 
Thereafter— 
Total of future minimum payments$9,556 
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 loans segment of the loan portfolio. For the years ended June 30, 2022 and 2021, total interest income on equipment finance leases totaled $3,057 and $2,444, respectively.
The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.2 million and $63.3 million at June 30, 2022 and 2021, respectively.
The following schedule summarizes aggregate future minimum finance lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$21,287 
202418,615 
202513,772 
20269,299 
20274,578 
Thereafter1,047 
Total undiscounted minimum payments68,598 
Less: amount representing interest(6,410)
Total lease receivable$62,188 
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 our option to renew or extend the lease term, that option is included in estimating the value of the ROU and 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 expense 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.
June 30,
20222021
Supplemental balance sheet information
ROU assets$5,846 $5,498 
Lease liabilities$6,641 $5,926 
Weighted-average remaining lease terms (years)10.809.49
Weighted-average discount rate2.90 %3.18 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at June 30, 2022:
Fiscal year ending June 30
2023$1,425 
2024981 
2025680 
2026555 
2027573 
Thereafter3,772 
Total undiscounted minimum lease payments7,986 
Less: amount representing interest(1,345)
Total lease liability$6,641 
The following table presents components of operating lease expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease cost (included in occupancy expense, net)$1,559 $1,637 
Variable lease cost (included in occupancy expense, net)9 24 
Sublease income (included in other noninterest income)(189)(207)
Total operating lease expense, net$1,379 $1,454 
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 June 30, 2022 and 2021 and is included in other assets. The corresponding lease liability totaled $1,763 and $1,804 at June 30, 2022 and 2021, respectively, and is included in other liabilities. For the years ended June 30, 2022 and 2021, interest expense on the lease liability totaled $93 and $95, 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 June 30, 2022:
Fiscal year ending June 30
2023$134 
2024145 
2025146 
2026146 
2027146 
Thereafter1,557 
Total undiscounted minimum lease payments2,274 
Less: amount representing interest(511)
Total lease liability$1,763 
Supplemental lease cash flow information as of the dates indicated:
Year Ended June 30,
20222021
ROU assets - noncash additions (operating leases)$1,186 $2,586 
Cash paid for amounts included in the measurement of lease liabilities (operating leases)1,438 2,036 
Cash paid for amounts included in the measurement of lease liabilities (finance leases)134 134 
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 construction, transportation, healthcare, and manufacturing 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 one to five 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 $20,075 and $25,932 with a residual value of $12,874 and $15,330 as of June 30, 2022 and 2021, respectively.
The following table presents total equipment finance operating lease income and depreciation expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease income$6,392 $5,601 
Depreciation expense5,362 5,864 
The following schedule summarizes aggregate future minimum lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$5,080 
20243,010 
2025998 
2026355 
2027113 
Thereafter— 
Total of future minimum payments$9,556 
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 loans segment of the loan portfolio. For the years ended June 30, 2022 and 2021, total interest income on equipment finance leases totaled $3,057 and $2,444, respectively.
The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.2 million and $63.3 million at June 30, 2022 and 2021, respectively.
The following schedule summarizes aggregate future minimum finance lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$21,287 
202418,615 
202513,772 
20269,299 
20274,578 
Thereafter1,047 
Total undiscounted minimum payments68,598 
Less: amount representing interest(6,410)
Total lease receivable$62,188 
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 our option to renew or extend the lease term, that option is included in estimating the value of the ROU and 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 expense 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.
June 30,
20222021
Supplemental balance sheet information
ROU assets$5,846 $5,498 
Lease liabilities$6,641 $5,926 
Weighted-average remaining lease terms (years)10.809.49
Weighted-average discount rate2.90 %3.18 %
The following schedule summarizes aggregate future minimum lease payments under these operating leases at June 30, 2022:
Fiscal year ending June 30
2023$1,425 
2024981 
2025680 
2026555 
2027573 
Thereafter3,772 
Total undiscounted minimum lease payments7,986 
Less: amount representing interest(1,345)
Total lease liability$6,641 
The following table presents components of operating lease expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease cost (included in occupancy expense, net)$1,559 $1,637 
Variable lease cost (included in occupancy expense, net)9 24 
Sublease income (included in other noninterest income)(189)(207)
Total operating lease expense, net$1,379 $1,454 
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 June 30, 2022 and 2021 and is included in other assets. The corresponding lease liability totaled $1,763 and $1,804 at June 30, 2022 and 2021, respectively, and is included in other liabilities. For the years ended June 30, 2022 and 2021, interest expense on the lease liability totaled $93 and $95, 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 June 30, 2022:
Fiscal year ending June 30
2023$134 
2024145 
2025146 
2026146 
2027146 
Thereafter1,557 
Total undiscounted minimum lease payments2,274 
Less: amount representing interest(511)
Total lease liability$1,763 
Supplemental lease cash flow information as of the dates indicated:
Year Ended June 30,
20222021
ROU assets - noncash additions (operating leases)$1,186 $2,586 
Cash paid for amounts included in the measurement of lease liabilities (operating leases)1,438 2,036 
Cash paid for amounts included in the measurement of lease liabilities (finance leases)134 134 
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 construction, transportation, healthcare, and manufacturing 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 one to five 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 $20,075 and $25,932 with a residual value of $12,874 and $15,330 as of June 30, 2022 and 2021, respectively.
The following table presents total equipment finance operating lease income and depreciation expense as of the dates indicated:
Year Ended June 30,
20222021
Operating lease income$6,392 $5,601 
Depreciation expense5,362 5,864 
The following schedule summarizes aggregate future minimum lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$5,080 
20243,010 
2025998 
2026355 
2027113 
Thereafter— 
Total of future minimum payments$9,556 
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 loans segment of the loan portfolio. For the years ended June 30, 2022 and 2021, total interest income on equipment finance leases totaled $3,057 and $2,444, respectively.
The lease receivable component of finance lease net investment included within equipment finance class of financing receivables was $62.2 million and $63.3 million at June 30, 2022 and 2021, respectively.
The following schedule summarizes aggregate future minimum finance lease payments to be received at June 30, 2022:
Fiscal year ending June 30
2023$21,287 
202418,615 
202513,772 
20269,299 
20274,578 
Thereafter1,047 
Total undiscounted minimum payments68,598 
Less: amount representing interest(6,410)
Total lease receivable$62,188