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LEASES | 12 Months Ended
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Mar. 31, 2021
LEASES |
LEASES | 18. LEASES The Company has a finance lease for the shell of the building constructed as the Company's operations center which expires in November 2039. The Company is also obligated under various noncancelable operating lease agreements for land, buildings and equipment that require future minimum rental payments. For operating each lease, the Company records an operating lease right-of-use asset (representing the right to use the underlying asset for the lease term) and an operating lease liability (representing the obligation to make lease payments required under the terms of the lease). Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate – derived from information available at the lease commencement date – as the discount rate when determining the present value of lease payments. The Company does not have any operating leases with an initial term of 12 months or less. Certain operating leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Certain operating leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. Lease extensions are not reasonably certain and the Company generally does not include payments occurring during option periods in the calculation of its operating lease right-of-use assets and operating lease liabilities. The Company adopted the requirements of ASC 842 effective April 1, 2019, which required the Company to record in the consolidated balance sheet operating lease right-of-use (“ROU”) assets and operating lease liabilities for leases with an initial term of more than 12 months for leases that existed as of April 1, 2019. The periods prior to the date of adoption are accounted for under superseded ASC 840; therefore, the following disclosures include only the period for which ASC 842 was effective. The table below presents the ROU assets and lease liabilities recorded in the consolidated balance sheet at the dates indicated (in thousands):
|  | March 31, |  |  | March 31, |  | Classification in the
Leases |  | 2021 |  |  | 2020 |  | consolidated balance sheets
Finance lease ROU assets |  | $ | 1,432 |  |  | $ | 1,508 |  | Financing lease ROU assets
Finance lease liability |  | $ | 2,329 |  |  | $ | 2,369 |  | Finance lease liability
Finance lease remaining lease term |  |  | 18.68 | years |  |  | 19.68 | years |
Finance lease discount rate |  |  | 7.16 | % |  |  | 7.16 | % |
Operating lease ROU assets |  | $ | 8,782 |  |  | $ | 3,949 |  | Prepaid expenses and other assets
Operating lease liabilities |  | $ | 9,201 |  |  | $ | 4,046 |  | Accrued expenses and other liabilities
Operating lease weighted-average remaining lease term |  |  | 7.87 | years |  |  | 3.92 | years |
Operating lease weighted-average discount rate |  |  | 1.77 | % |  |  | 2.77 | % |
The table below presents certain information related to the lease costs for operating leases, which are recorded in occupancy and depreciation in the accompanying consolidated statements of income at the dates indicated (in thousands):
|  | Year |  | Year
|  | ended |  | ended
|  | March 31, |  | March 31,
Lease Costs |  | 2021 |  | 2020
Finance lease amortization of right-of-use asset |  | $ | 77 |  | $ | 77
Finance lease interest on lease liability |  |  | 168 |  |  | 171
Operating lease costs |  |  | 1,312 |  |  | 1,508
Variable lease costs |  |  | 209 |  |  | 209
Total lease cost (1) |  | $ | 1,766 |  | $ | 1,965
(1) income related to sub-lease activity is not significant and not presented herein. Rent expense was $2.0 million for the year ended March 31, 2019. Supplemental cash flow information – Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities was $1.5 million and $1.7 million for the years ended March 31, 2021 and 2020, respectively. During the years ended March 31, 2021 and 2020, the Company recorded operating lease ROU assets that were exchanged for operating lease liabilities of $6.1 million and $5.6 million, respectively. The following table reconciles the undiscounted cash flows for the periods presented related to the Company’s lease liabilities as of March 31, 2021 (in thousands):
Years Ending March 31: |  | Operating |  | Finance
|  | Leases |  | Lease
2022 |  | $ | 1,448 |  | $ | 212
2023 |  |  | 1,274 |  |  | 215
2024 |  |  | 1,290 |  |  | 219
2025 |  |  | 1,292 |  |  | 222
2026 |  |  | 1,040 |  |  | 226
Thereafter |  |  | 3,527 |  |  | 3,174
Total minimum lease payments |  |  | 9,871 |  |  | 4,268
Less: amount of lease payment representing interest |  |  | (670) |  |  | (1,939)
Lease liabilities |  | $ | 9,201 |  | $ | 2,329
In March 2010, the Company sold two of its branch locations. The Company maintains a substantial continuing involvement in the locations through various non-cancellable operating leases that contain certain renewal options. The resulting gain on sale of $2.1 million was deferred and is being amortized over the lives of the respective leases. At March 31, 2021 and 2020, the remaining deferred gain was $377,000 and $537,000, respectively, and is included in accrued expenses and other liabilities in the accompanying consolidated balance sheet.

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- 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
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