Note 16. 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 guarantees.
 
The following includes quantitative data related to the Company’s operating leases as of June 30, 2025 and 2024:
 
        
(In thousands)
        
Operating lease amounts:
 
2025
    
2024
 
Right-of-use assets
$2,284   $2,071 
Lease liabilities
$2,366   $2,159 
          
Other information:
        
Operating outgoing cash flows from operating leases
$502   $471 
Right-of-use assets obtained in exchange for new operating lease liabilities
$648   $251 
          
 
        
(In thousands)         
Lease costs   2025      2024  
Operating lease cost $454   $426 
Variable lease cost $44   $44 
 
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 June 30, 2025:
 
   
(In thousands, except weighted-average information)
  
Within the twelve months ended June 30,
  
2026
$
556
2027
 
534
2028
 
463
2029
 
319
2030
 
298
Thereafter
 
487
Total undiscounted cash flow
 
2,657
Less net present value adjustment
 
(291)
Lease liability
$
2,366
 
       
    2025     2024  
Weighted-average remaining lease term (years)  5.79   5.20 
Weighted-average discount rate  3.56%  3.03%
 
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 condition.

Historical Timeline

Fiscal YearFiled
2025Sep 5, 2025Showing above
2020Sep 11, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.