Leases

3 Months Ended

Jun. 30, 2020

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 $2.4 million and $2.7 million as of June 30, 2020 and March 31, 2020, 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 $2.4 million and $2.6 million as of June 30, 2020 and March 31, 2020, respectively.

Future minimum lease payments under non-cancellable operating leases in effect as of June 30, 2020, are as follows:

in thousands
FY2021 (remaining nine months)	$	1,019
FY2022		932
FY2023		516
FY2024		84
FY2025		46
Thereafter	$	182
Total future minimum lease payments		2,779
Present value adjustment		(369	)
Operating lease liability	$	2,410

The following table reports information about the Company’s lease cost for the three months ended June 30, 2020 (in thousands):

Lease cost:
Operating lease cost	$	411
Variable lease cost		97
Total lease cost	$	508

The following table reports information about the Company’s lease cost for the three months ended June 30, 2019 (in thousands):

Lease cost:
Operating lease cost	$	466
Variable lease cost		116
Total lease cost	$	582

The following table reports other information about the Company’s leases for the three months ended June 30, 2020 (dollar amounts in thousands):

Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	428
Operating Lease - Operating Cash Flows (Liability Reduction)	$	386
Weighted Average Lease Term - Operating Leases		3.0 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 June 30, 2019 (dollar amounts in thousands):

Other Lease Information
Operating Lease - Operating Cash Flows (Fixed Payments)	$	481
Operating Lease - Operating Cash Flows (Liability Reduction)	$	442
Weighted Average Lease Term - Operating Leases		2.0 years
Weighted Average Discount Rate - Operating Leases		6.5%