NOTE 4—PREMISES AND EQUIPMENT

Major classifications of premises and equipment were as follows as of June 30:

Depreciation expenses were $1,157 and $1,095 for the years ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the Company leased real estate for seven office locations and various equipment under operating lease agreements. The lease agreements have maturity dates ranging from one year or less to May 31, 2035, including extension periods. Lease agreements for three locations have a lease term of 12 months or less and are therefore considered short-term leases. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion. Most renewals to extend the lease terms are included in our right-of-use assets and lease liabilities as they are reasonably certain of exercise. As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments. The weighted average remaining life of the lease term for the leases with a term over 12 months was 6.61 years as of June 30, 2025 and the weighted-average discount rate was 1.85%.

Rent expense for all the operating leases was $230 and $245 for the twelve-month periods ending June 30, 2025 and 2024, respectively. As of June 30, 2025, the right-of-use asset, included in premises and equipment, was $647 and the lease liability, included in other liabilities, was $677.

Total estimated rental commitments for the operating leases with a term of over 12 months were as follows as of June 30, 2025: