Note 5 - Premises and Equipment

12 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 5—PREMISES AND EQUIPMENT

Major classifications of premises and equipment were as follows as of June 30:

	2022			2021
Land	$	1,685		$	1,603
Land improvements		318			381
Building and leasehold improvements		15,608			15,522
Furniture, fixture and equipment		7,206			6,616
Total premises and equipment		24,816			24,122
Accumulated depreciation and amortization		(8,296	)		(8,329	)
Premises and equipment, net	$	16,521		$	15,793

Depreciation expense was $991 and $940 for the years ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, the Corporation leased real estate for seven office locations and various equipment under operating lease agreements. The lease agreements have maturity dates ranging from one year or less to May 31, 2035, including extension periods. Lease agreements for three locations have a lease term of 12 months or less and are therefore considered short-term leases. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion. The majority of renewals to extend the lease terms are included in our right-of-use assets and lease liabilities as they are reasonably certain of exercise. As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments. The weighted average remaining life of the lease term for the leases with a term over 12 months was 75.81 months as of June 30, 2022 and the weighted-average discount rate was 1.78%.

Rent expense for all the operating leases was $228 and $205 for the twelve-month periods ended June 30, 2022 and 2021, respectively. The right-of-use asset, included in premises and equipment, and the lease liability, included in other liabilities, were $1,029 and $1,177 as of June 30, 2022 and 2021, respectively.

Total estimated rental commitments for the operating leases with a term over 12 months were as follows as of June 30, 2022:

Period Ending June 30
2023	$	167
2024		146
2025		114
2026		113
Thereafter		572
Total	$	1,112