Operating leases

3 Months Ended

Sep. 30, 2025

(12)

Operating leases

The Company leases certain branch properties under long-term operating lease agreements. The Company’s operating lease agreements contain non-lease components, which are generally accounted for separately. The Company’s lease agreements do not contain any residual value guarantee.

The following includes quantitative data related to the Company’s operating leases at September 30, 2025 and June 30, 2025, and for the three months ended September 30, 2025 and 2024:


(In thousands)
Operating lease amounts:		September 30, 2025		June 30, 2025
Right-of-use assets	$	2,163	$	2,284
Lease liabilities	$	2,258	$	2,366


	For the three months ended September 30,
(In thousands)		2025		2024
Other information:
Operating outgoing cash flows from operating leases	$	128	$	125
Right-of-use assets obtained in exchange for new operating lease liabilities		-		117

Lease costs:
Operating lease cost	$	140	$	113
Variable lease cost	$	11	$	11

The following is a schedule by year of the undiscounted cash flows of the operating lease liabilities, excluding common area maintenance charges and real estate taxes as of September 30, 2025:


(In thousands, except weighted-average information)
Within the twelve months ended September 30,
2026	$	429
2027		533
2028		463
2029		319
2030		298
Thereafter		487
Total undiscounted cash flow		2,529
Less net present value adjustment		(271	)
Lease liability	$	2,258

Weighted-average remaining lease term (years)		5.66
Weighted-average discount rate		3.62	%

Right-of-use assets are included in prepaid expenses and other assets, and lease liabilities are included in accrued expenses and other liabilities within the Company’s consolidated statements of financial condition.