NOTE

– LEASES

Lease Commitments

The Company utilizes leases for

seven

of its branch locations. As of

March 31, 2019,

net assets recorded under leases amounted to

$4.8

million and have remaining lease terms of

year to

years. As of

March 31, 2019,

finance lease assets included in premises and equipment, net totaled

$2.7

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

$2.1

million. The Company did

not

acquire any property under leases during the

three

months ended

March 31, 2019.

As of

March 31, 2019,

finance lease obligations included in other borrowings totaled

$2.7

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

$2.1

million.

Lease costs incurred for the

three

-month period ended

March 31, 2019

are as follows:

Lease Costs:
Finance lease cost:
Amortization of right-of-use asset	$	69
Interest Expense		39
Other		2
Operating lease cost		83
Total lease cost	$	193

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

March 31, 2019:

	Operating			Finance
Weighted-average term (years)		5.4			11.3
Weighted-average discount rate		3.2	%		3.3	%

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

March 31, 2019,

along with a reconciliation to the discounted amount recorded on the

March 31, 2019

balance sheet:

	Operating			Finance
Undiscounted cash flows due within:
2019	$	226		$	248
2020		294			343
2021		278			356
2022		279			363
2023		279			363
2024 and thereafter		1,466			1,664
Total undiscoutned cash flows		2,822			3,337

Impact of present value discount		(771	)		(635	)

Amount reported on balance sheet	$	2,051		$	2,702

As of

March 31, 2019,

the Company had

additional purchase obligations for leases executed but

not

yet recorded.