Leases

9 Months Ended

Jun. 30, 2020

LEASES

The Company adopted Accounting Standards Codification ("ASC") 842 ("ASC 842") on October 1, 2019 and began recording operating lease liabilities and operating lease ROU assets on the consolidated balance sheets. The Company has operating leases for three retail bank branch offices. The ROU assets totaled $2.89 million at October 1, 2019. The Company's leases have remaining lease terms of twelve months to eleven years, some of which include options to extend the leases for up to five years.

The components of lease cost (included in the premises and equipment expense category in the consolidated statements of income) are as follows for the three and nine months ended June 30, 2020 (dollars in thousands):


	Three Months Ended June 30, 2020		Nine Months Ended June 30, 2020
Lease cost:
Operating lease cost	$	118	$	284
Short-term lease cost	—		—
Total lease cost	$	118	284

The following table provides supplemental information to operating leases at or for the three and nine months ended June 30, 2020 (dollars in thousands):


	At or For the Three Months Ended June 30, 2020				At or For the Nine Months Ended June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	80			$	239
Weighted average remaining lease term-operating leases	9.5			years	9.5			years
Weighted average discount rate-operating leases	2.22		%		2.22		%

The Company's leases typically do not contain a discount rate implicit in the lease contract. As an alternative, the weighted average discount rate used to value the future value of lease payments due in calculating the value of the ROU asset and lease liability was determined by utilizing the September 30, 2019 fixed-rate advances issued by the FHLB, for all leases entered into prior to the October 1, 2019 adoption date.

Maturities of operating lease liabilities at June 30, 2020 for future fiscal years are as follows (dollars in thousands):


Remainder of 2020	$	80
2021	327
2022	342
2023	310
2024	313
Thereafter	1,639
Total lease payments	3,011
Less imputed interest	316
Total	$	2,695