Operating Leases

12 Months Ended

Jun. 30, 2025

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.