Leases

6 Months Ended

Sep. 30, 2022

Note 8. Leases

The Company maintains lease agreements related to its branch network and for its corporate headquarters. The branch lease agreements range from one to five years and generally contain options to extend from one to three years. The corporate headquarters lease agreement was renewed with a lease maturity date of March 2023. All of the Company’s lease agreements are considered operating leases. None of the Company’s lease payments are dependent on a rate or index that may change after the commencement date, other than the passage of time.

The Company’s lease liability was $3.4 million and $4.4 million as of September 30, 2022 and March 31, 2022, respectively. This liability is based on the present value of the remaining minimum rental payments using a discount rate that is determined based on the Company’s incremental borrowing rate. The lease asset was $3.3 million and $4.3 million as of September 30, 2022 and March 31, 2022, respectively.

On July 18, 2022, the Company announced its plan to close eleven branches, of which six closures occurred prior to September 30, 2022 and resulted in approximately $230 thousand in lease termination expenses.

Future minimum lease payments under non-cancellable operating leases in effect as of September 30, 2022, are as follows:


in thousands
FY2023 (remaining six months)	$	736
FY2024		1,066
FY2025		819
FY2026		467
FY2027		293
Thereafter	$	481
Total future minimum lease payments		3,862
Present value adjustment		(421	)
Operating lease liability	$	3,441

The following table reports information about the Company’s lease cost for the three months ended September 30, 2022 (in thousands):


Lease cost:
Operating lease cost	$	435
Variable lease cost		92
Total lease cost	$	527

The following table reports information about the Company’s lease cost for the three months ended September 30, 2021 (in thousands):


Lease cost:
Operating lease cost	$	430
Variable lease cost		85
Total lease cost	$	515

The following table reports information about the Company’s lease cost for the six months ended September 30, 2022 (in thousands):


Lease cost:
Operating lease cost	$	893
Variable lease cost		187
Total lease cost	$	1,080

The following table reports information about the Company’s lease cost for the six months ended September 30, 2021 (in thousands):


Lease cost:
Operating lease cost	$	820
Variable lease cost		170
Total lease cost	$	990

The following table reports other information about the Company’s leases for the three months ended September 30, 2022 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	457
Operating Lease - Operating Cash Flows (Liability Reduction)	$	369
Weighted Average Lease Term - Operating Leases		3.9 years
Weighted Average Discount Rate - Operating Leases		6.5%

The following table reports other information about the Company’s leases for the three months ended September 30, 2021 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	391
Operating Lease - Operating Cash Flows (Liability Reduction)	$	343
Weighted Average Lease Term - Operating Leases		4.3 years
Weighted Average Discount Rate - Operating Leases		6.5%

The following table reports other information about the Company’s leases for the six months ended September 30, 2022 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	902
Operating Lease - Operating Cash Flows (Liability Reduction)	$	748
Weighted Average Lease Term - Operating Leases		3.9 years
Weighted Average Discount Rate - Operating Leases		6.5%

The following table reports other information about the Company’s leases for the six months ended September 30, 2021 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	776
Operating Lease - Operating Cash Flows (Liability Reduction)	$	678
Weighted Average Lease Term - Operating Leases		3.7 years
Weighted Average Discount Rate - Operating Leases		6.5%