Leases

3 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

LEASES

At December 31, 2022, the Company has operating leases for two retail bank branch offices. The Company's leases have remaining lease terms of four to nine years, both of which include options to extend the leases for up to five years. Lease extensions are not certain, and the Company evaluates each lease based on the specific circumstances for the location to determine the probability of exercising the extensions in the calculation of ROU assets and liabilities.

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 months ended December 31, 2022 and 2021 (dollars in thousands):

	Three Months Ended December 31,
Lease cost:	2022		2021
Operating lease cost	$	88	$	94
Short-term lease cost	—		—
Total lease cost	$	88	$	94

The following tables provide supplemental information related to operating leases at or for the three months ended December 31, 2022 and year ended September 30, 2022 (dollars in thousands):

	At or For the Three Months Ended December 31 , 2022			At or For the Year Ended September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	77		$	342
Weighted average remaining lease term-operating leases	7.5 years			7.7 years
Weighted average discount rate-operating leases	2.25		%	2.25		%

The Company's leases typically do not contain a discount rate implicit in the lease contracts. As an alternative, the weighted average discount rate used to estimate the present value of future lease payments in calculating the value of the ROU asset and liability was determined by utilizing the FHLB fixed-rate credit advance borrowing rate for the term correlating to the remaining term of each lease.

Maturities of operating lease liabilities at December 31, 2022 for future fiscal years are as follows (dollars in thousands):

Remainder of 2023	$	233
2024	313
2025	317
2026	284
2027	219
Thereafter	819
Total lease payments	2,185
Less imputed interest	184
Total	$	2,001