Leases

9 Months Ended

Jun. 30, 2020

LEASES

The Company leases real estate property for branches, ATMs, and certain equipment. These leases have remaining terms that range from one year to 47 years, some of which include the exercising of renewal options that the Company considers to be reasonably certain. As of June 30, 2020, a right-of-use asset of $15.5 million was included in other assets and a lease liability of $15.5 million was included in accounts payable and accrued expenses on the consolidated balance sheets.

As of June 30, 2020, for the Company's operating leases, the weighted average remaining lease term was 22.0 years and the weighted average discount rate was 2.59%.

The following table presents lease expenses and supplemental cash flow information related to the Company's leases for the periods presented.


	For the Three Months Ended		For the Nine Months Ended
	June 30, 2020		June 30, 2020
	(Dollars in thousands)
Operating lease expense	$	373	$	1,138
Variable lease expense	50		158
Short-term lease expense	1		17
Cash paid for amounts included in the measurement of lease liabilities	345		1,028

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 June 30, 2020:


Remainder of fiscal year 2020	$	231
Fiscal year 2021	1,363
Fiscal year 2022	1,329
Fiscal year 2023	1,236
Fiscal year 2024	1,027
Fiscal year 2025	858
Thereafter	16,135
Total future minimum lease payments	22,179
Amounts representing interest	(6,668)
Present value of net future minimum lease payments	$	15,511

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