Premises And Equipment

12 Months Ended

Dec. 31, 2014

NOTE 8- PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows:


	2014		2013		2012
Land and land improvements	$	1,293	$	1,293	$	1,679
Buildings		3,827		3,722		5,792
Furniture, fixtures and equipment		2,610		2,255		2,858
		7,730		7,270		10,329
Less: Accumulated Depreciation		(3,955)		(3,723)		(5,012)
	$	3,775	$	3,547	$	5,317

Depreciation expense for 2014, 2013 and 2012 totaled $232, $205 and $237, respectively.

The Holding Company previously owned Smith Ghent LLC, an Ohio limited liability company that owned and managed the office building at 2923 Smith Road, Fairlawn, Ohio 44333, where the Holding Company’s and CFBank’s headquarters were located. On October 29, 2013, the Company consummated a sale of the Fairlawn office building, located at 2923 Smith Road in Fairlawn, certain furniture and fixtures, and adjacent land for approximately $3.2 million and recognized a gain on sale of fixed assets of approximately $1.1 million. As a result of the sale, the Company relocated its Fairlawn main office branch during December of 2013 to a nearby location for a short-term interim period until its new permanent, expanded branch facility was ready for occupancy in the second quarter of 2014. Based on the aforementioned transaction, the subsidiaries were legally dissolved prior to year end 2013.

At December 31, 2012, CFBank had $167 of land in an adjacent lot in assets held for sale, which was sold in 2013 with the building.

During the fourth quarter of 2013, the Company entered into a lease agreement to open a Commercial Banking Loan office in Woodmere, Ohio. The office opened in January of 2014.

Operating Leases: As a result of the aforementioned transaction, the Company now leases certain branch and loan office property space under two operating leases. The Fairlawn branch is a ten year operating lease beginning in 2014 with annual rent increases each year. There is one five year renewal option on this lease. The Woodmere lease is for a 128 -month term commencing January 1, 2014 with no renewal options. Each lease requires CFBank to absorb its pro rata share of building operating expenses and utilities based on square footage. The Company’s lease for the interim main office branch location is not material. There were no lease expenses in 2012. During 2013, CFBank incurred partial prorated lease payment for December 2013 related to its interim location, which was not material. Lease expense for year ended December 31, 2014 totaled $320. Leasehold improvements are depreciated straight line over the lease term before consideration of renewal options.

Lease expense is recognized evenly over the lease term to account for lease incentives. Rent commitments, before renewal options, are as follows:



2015	$	294
2016		295
2017		320
2018		321
2019		322
Thereafter		1,507
	$	3,059

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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