Note

Leases

The Company evaluates all contracts at commencement to determine if a lease is present. The Company adopted ASC

842

using the prospective method approach to all identified lease contracts or agreements, which permits us

not

to restate comparative periods. The current period adoption also recognized the use of a number of practical measures that permitted the Company

not

to reevaluate prior assumptions regarding the identification and classification of leases. In accordance with ASC

842,

leases are defined as either operating or finance leases.

The Company identified

lease contracts as of ASC

842

adoption date,

January 1, 2019.

All lease contracts were classified as operating leases and created operating right-of-use, (“ROU”) assets and corresponding lease liabilities on the balance sheet. The leases are ROU assets of land and building for branch and loan production locations. These ROU assets are reported on the accrued interest and other assets line and the related lease liabilities on the accrued interest and other liabilities line on the Statement of Financial Condition.

The following tables present the ROU assets, lease expense, weighted average term, discount rate and maturity analysis of lease liabilities for operating leases at the date indicated.

(dollars in thousands, except weighted-averages)	March 31, 2019
Operating Lease Expense	$	123

Operating Leases
ROU Assets	$	1,888
Operating Cash Flows		115

Weighted Average Lease Term
Operating Leases		7.51

Weighted Average Discount Rate
Operating Leases		0.33	%

(dollars in thousands)	March 31, 2019
Maturity Analysis
2019	$	503
2020		420
2021		309
2022		144
2023		66
2024 and thereafter		446
Total	$	1,888
Less: Present Value Discount		34
Lease Liabilities	$	1,854