Leases

3 Months Ended

Dec. 31, 2019

LEASES

The Company leases real estate property for branches, ATMs, and certain equipment. These leases have remaining terms that range from one year to 48 years, some of which include the exercising of renewal options that the Company considers to be reasonably certain. As of December 31, 2019, a right-of-use asset of $15.4 million was included in other assets and a lease liability of $15.3 million was included in accounts payable and accrued expenses on the consolidated balance sheets.

As of December 31, 2019, for the Company's operating leases, the weighted average remaining lease term was 23.3 years and the weighted average discount rate was 2.70%. During the three months ended December 31, 2019, the Company recognized operating lease expense of $389 thousand, variable lease expense of $50 thousand and short-term lease expense of $9 thousand. Cash paid during the period for amounts included in the measurement of lease liabilities totaled $344 thousand. The Company did not enter into any new lease obligations during the three months ended December 31, 2019.

The following table presents future minimum payments, rounded to the nearest thousand, for operating leases with initial or remaining terms in excess of one year as of December 31, 2019:



2020	$	1,267
2021	1,345
2022	1,332
2023	1,160
2024	978
Thereafter	16,023
Total future minimum lease payments	22,105
Amounts representing interest	(6,810		)
Present value of net future minimum lease payments	$	15,295

The Company elected the modified retrospective approach for its adoption of ASU 2016-02, and the optional transition method under which the Company used the effective date as the date of initial application of the amendments. These elections require the inclusion of ASC Topic 840 disclosures for periods that continue to be presented in accordance with ASC Topic 840. As of September 30, 2019, future minimum rental commitments, rounded to the nearest thousand, required under operating leases that had initial or remaining non-cancelable lease terms in excess of one year were as follows:



2020	$	1,298
2021	1,187
2022	1,069
2023	930
2024	637
Thereafter	1,115
	$	6,236