Leases

9 Months Ended

Dec. 31, 2021

Note 7. 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 $4.7 million and $3.4 million as of December 31, 2021 and March 31, 2021, 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 $4.6 million and $3.4 million as of December 31, 2021 and March 31, 2021, respectively.

Future minimum lease payments under non-cancellable operating leases in effect as of December 31, 2021, are as follows:


in thousands
FY2022 (remaining three months)	$	405
FY2023		1,592
FY2024		1,097
FY2025		888
FY2026		553
Thereafter	$	774
Total future minimum lease payments		5,309
Present value adjustment		(628	)
Operating lease liability	$	4,681

The following table reports information about the Company’s lease cost for the three months ended December 31, 2021 (in thousands):


Lease cost:
Operating lease cost	$	458
Variable lease cost		87
Total lease cost	$	545

The following table reports information about the Company’s lease cost for the three months ended December 31, 2020 (in thousands):


Lease cost:
Operating lease cost	$	365
Variable lease cost		82
Total lease cost	$	447

The following table reports information about the Company’s lease cost for the nine months ended December 31, 2021 (in thousands):


Lease cost:
Operating lease cost	$	1,278
Variable lease cost		257
Total lease cost	$	1,535

The following table reports information about the Company’s lease cost for the nine months ended December 31, 2020 (in thousands):


Lease cost:
Operating lease cost	$	1,148
Variable lease cost		264
Total lease cost	$	1,412

The following table reports other information about the Company’s leases for the three months ended December 31, 2021 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	400
Operating Lease - Operating Cash Flows (Liability Reduction)	$	352
Weighted Average Lease Term - Operating Leases		4.2 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 December 31, 2020 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	380
Operating Lease - Operating Cash Flows (Liability Reduction)	$	339
Weighted Average Lease Term - Operating Leases		2.8 years
Weighted Average Discount Rate - Operating Leases		6.5%

The following table reports other information about the Company’s leases for the nine months ended December 31, 2021 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	1,176
Operating Lease - Operating Cash Flows (Liability Reduction)	$	1,030
Weighted Average Lease Term - Operating Leases		3.8 years
Weighted Average Discount Rate - Operating Leases		6.5%

The following table reports other information about the Company’s leases for the nine months ended December 31, 2020 (dollar amounts in thousands):


Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	1,198
Operating Lease - Operating Cash Flows (Liability Reduction)	$	1,077
Weighted Average Lease Term - Operating Leases		2.7 years
Weighted Average Discount Rate - Operating Leases		6.5%