NOTE

–

LEASE

COMMITMENTS

The Company leases

six

of its branch locations. As of

September 30, 2019,

net assets recorded under leases amounted to

$4.5

million and have remaining lease terms of

year to

years. As of

September 30, 2019,

finance lease assets included in premises and equipment, net, totaled

$3.5

million and operating lease assets included in accrued interest receivable and other assets on the Consolidated Balance Sheet totaled

$943,000.

As of

September 30, 2019,

finance lease obligations included in other borrowings totaled

$3.6

million and operating lease obligations included in accrued interest payable and other liabilities on the Consolidated Balance Sheet totaled

$945,000.

April 17, 2019,

the Company purchased a building to relocate the Mantua branch which is and has been at a leased location as of

September 30, 2019.

The relocation is planned for

2020,

and the Company entered into an amended lease agreement with the Mantua lessor which does

not

exceed

months. As such, the lease for the Mantua location is

not

considered a capitalized lease as of

September 30, 2019.

Lease costs incurred are as follows:

	For the Three		For the Nine
	Months Ended		Months Ended
	September 30, 2019		September 30, 2019
Lease Costs:
Finance lease cost:
Amortization of right-of-use asset	$	91	$	264
Interest Expense		31		100
Other		10		25
Operating lease cost		52		178
Total lease cost	$	184	$	567

The following table displays the weighted-average term and discount rates for both operating and finance leases outstanding as of

September 30, 2019:

	Operating			Finance
Weighted-average term (years)		1.9			4.6
Weighted-average discount rate		2.9	%		3.4	%

The following table displays the undiscounted cash flows due related to operating and finance leases as of

September 30, 2019,

along with a reconciliation to the discounted amount recorded on the

September 30, 2019

balance sheet:

	Operating			Finance
Undiscounted cash flows due within:
2019	$	56		$	100
2020		226			411
2021		210			424
2022		211			431
2023		211			431
2024 and thereafter		339			2,792
Total undiscounted cash flows		1,253			4,589

Impact of present value discount		(310	)		(1,051	)

Amount reported on balance sheet	$	943		$	3,538

September 11, 2019,

the Company entered into a lease agreement for a new branch to be located in Plain City, Ohio. The commencement date of the lease is

November 1, 2019,

and the estimated value of the related right-of-use asset and liability to be recorded at this time is

571,000

This lease is expected to be classified as a finance lease included in premises and equipment, net, on the Consolidated Balance Sheet. The Company has

other purchase obligations for leases executed but

not

yet recorded.