SR Bancorp, Inc. Leases Disclosure
The Company accounts for its leases in accordance with ASC Topic 842. The Company's right-of-use asset and operating lease liability are recognized at lease commencement based on the present value of the remaining lease payment obligations using discount rates that represent the Company’s incremental borrowing rate as of the lease commencement dates. The Company leases only office space and equipment under operating leases, with original lease terms ranging from to ten years. The Company elected not to include short-term leases with initial terms of twelve months or less on the consolidated statements of financial condition. The operating lease agreements recognized on the consolidated statements of financial condition as a right-of-use asset and a corresponding lease liability, as well as other information related to the Company's operating leases, are summarized in the table below.
|
|
Year Ended June 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(Dollars in thousands) |
|
|||||
Right-of-use asset |
|
$ |
3,156 |
|
|
$ |
2,311 |
|
Lease liability |
|
$ |
3,211 |
|
|
$ |
2,403 |
|
Weighted-average remaining lease term, in years |
|
|
4.23 |
|
|
|
3.57 |
|
Weighted-average discount rate |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
|
|
|
|
|
|
||
Future undiscounted minimum lease payments for operating leases with initial terms of one year or more as of June 30, 2025 are as follows:
|
|
June 30, |
|
|
|
|
(In thousands) |
|
|
June 30, 2026 |
|
$ |
854 |
|
June 30, 2027 |
|
|
797 |
|
June 30, 2028 |
|
|
695 |
|
June 30, 2029 |
|
|
643 |
|
June 30, 2030 |
|
|
262 |
|
Thereafter |
|
|
62 |
|
Total future minimum lease payments |
|
|
3,313 |
|
Less: imputed interest |
|
|
(102 |
) |
Total |
|
$ |
3,211 |
|
Future undiscounted minimum lease payments for operating leases with initial terms of one year or more as of June 30, 2025 are as follows:
|
|
Year Ended June 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(In thousands) |
|
|||||
Operating lease cost |
|
$ |
878 |
|
|
$ |
834 |
|
Cash paid for amounts included in measurement of lease liabilities |
|
$ |
818 |
|
|
$ |
816 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 29, 2025 | Showing above |
| 2024 | Oct 16, 2024 | |
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.