Premises and Equipment

12 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Premises and equipment consisted of the following at September 30, 2016 and 2015 (dollars in thousands):



	2016		2015
Land	$	3,926	$	3,944
Buildings and improvements	17,709		17,664
Furniture and equipment	7,732		8,071
Property held for future expansion	129		110
Construction and purchases in progress	237		96
	29,733		29,885
Less accumulated depreciation	13,574		13,031
Premises and equipment, net	$	16,159	$	16,854

In November 2016 the Company began a major remodel of its Edgewood branch that is estimated to cost approximately $1.0 million. The remodel is anticipated to be completed in March 2017.

The Company leases certain premises under operating lease agreements. Certain leases contain renewal options from five to ten years and escalation clauses based on increases in property taxes and other costs. Total rental expense was $287,000, $280,000 and $267,000 for the years ended September 30, 2016, 2015 and 2014, respectively, which was included in premises and equipment expense in the accompanying consolidated statements of income.

Minimum net rental commitments under non-cancellable leases having an original or remaining term of more than one year for fiscal years ending subsequent to September 30, 2016 are as follows (dollars in thousands):



2017	$	302
2018	302
2019	296
2020	262
2021	148
Total minimum payments required	$	1,310

The Company has entered into an agreement to purchase one of the leased buildings for $1.8 million. The transaction is expected to close December 31, 2016. Upon closing of the purchase and termination of the related leases, the minimum net rental commitments in the table above would be reduced by $65,000 for 2017, $97,000 for each of 2018, 2019 and 2020, and $24,000 for 2021.