Leases

12 Months Ended

Sep. 30, 2023

At September 30, 2023, the Company has operating leases for two retail bank branch offices and an administrative office. The Company's leases have remaining lease terms of two to eight years, 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 years ended September 30, 2023, 2022 and 2021 (dollars in thousands):


Lease cost:	2023		2022		2021
Operating lease cost	$	354	$	371	$	395
Short-term lease cost	—		—		—
Total lease cost	$	354	$	371	$	395

The following table provides supplemental information related to operating leases at or for the years ended September 30, 2023, 2022 and 2021 (dollars in thousands):


	2023				2022				2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	316			$	342			$	327
Weighted average remaining lease term-operating leases	6.69			yrs	7.67			yrs	8.44			yrs
Weighted average discount rate-operating leases	2.33		%		2.25		%		2.24		%

The Company's leases typically do not contain a discount rate implicit in the lease contracts. As an alternative, the weighted average discount rate is used to estimate the present value of future lease payments in calculating the value of the ROU asset.

Maturities of operating lease liabilities at September 30, 2023 for the five fiscal years ending subsequent to September 30, 2023 and thereafter, are as follows (dollars in thousands):


2024	$	333
2025	336
2026	304
2027	232
2028	219
Thereafter	600
Total lease payments	2,024
Less imputed interest	157
Total	$	1,867