Leases

3 Months Ended

Dec. 31, 2023

LEASES

At December 31, 2023, the Company has operating leases for two retail bank branch offices and an administrative office. The Company's leases have remaining lease terms of two to eight years, and include options to extend the leases from two to five years. Lease extensions are not certain, and the Company evaluates each lease based on the specific circumstances for the location to determine the probability of exercising the extensions in the calculation of operating lease ROU assets and lease liabilities.

The components of lease cost (included in the premises and equipment expense category in the consolidated statements of income) are as follows for the three months ended December 31, 2023 and 2022 (dollars in thousands):


	Three Months Ended December 31,
Lease cost:	2023		2022
Operating lease cost	$	93	$	88
Short-term lease cost	—		—
Total lease cost	$	93	$	88

The following tables provide supplemental information related to operating leases at or for the three months ended December 31, 2023 and year ended September 30, 2023 (dollars in thousands):


	At or For the Three Months Ended December 31, 2023			At or For the Year Ended September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	82		$	316
Weighted average remaining lease term-operating leases	6.5 years			6.7 years
Weighted average discount rate-operating leases	2.34		%	2.33		%

The Company's leases typically do not contain a discount rate implicit in the lease contracts. As an alternative, the weighted average discount rate used to estimate the present value of future lease payments in calculating the value of the ROU asset and lease liability was determined by utilizing the FHLB fixed-rate credit advance borrowing rate for the term correlating to the remaining term of each lease.

Maturities of operating lease liabilities at December 31, 2023 for future fiscal years are as follows (dollars in thousands):


Remainder of 2024	$	250
2025	336
2026	304
2027	232
2028	219
Thereafter	601
Total lease payments	1,942
Less imputed interest	146
Total	$	1,796