Leases

12 Months Ended

Sep. 30, 2025

At September 30, 2025, the Company has operating leases for three retail bank branch offices and an administrative office. The Company's leases have remaining lease terms of two to twenty-four years, which include options to extend the leases for up to fifteen 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 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 years ended September 30, 2025, 2024 and 2023 (dollars in thousands):


Lease cost:	2025		2024		2023
Operating lease cost	$	417	$	380	$	354
Short-term lease cost	—		—		—
Total lease cost	$	417	$	380	$	354

The following table provides supplemental information related to operating leases at or for the years ended September 30, 2025, 2024 and 2023 (dollars in thousands):


	2025				2024				2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	344			$	332			$	316
Weighted average remaining lease term-operating leases	16.44			yrs	5.94			yrs	6.69			yrs
Weighted average discount rate-operating leases	4.07		%		2.34		%		2.33		%

The Company's leases typically do not contain a discount rate implicit in the lease contracts. As an alternative, the incremental borrowing rate is used to estimate the present value of future lease payments in calculating the value of the ROU asset.

Maturities of operating lease liabilities at September 30, 2025 for the five fiscal years ending subsequent to September 30, 2025 and thereafter, are as follows (dollars in thousands):


2026	$	377
2027	340
2028	344
2029	339
2030	327
Thereafter	3,127
Total lease payments	4,854
Less imputed interest	1,777
Total	$	3,077