PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Premises and equipment at December 31, 2016 and 2015 are as follows (in thousands):



	2016		2015
Land	$	4,803	$	4,803
Buildings	40,831		38,660
Projects in progress	—		167
Equipment and furniture	37,072		35,734
Leasehold improvements	5,445		5,759
	88,151		85,123
Less accumulated depreciation and amortization	59,228		55,726
Net book value	$	28,923	$	29,397

Depreciation expense was $4.2 million, $4.0 million and $3.9 million for 2016, 2015, and 2014, respectively.

Operating Leases

The Corporation leases certain branch properties under operating leases. Rent expense was $1.2 million, $1.3 million and $1.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. Rent commitments, before considering renewal options that generally are present, were as follows (in thousands):



Year	Estimated Expense
2017	$	1,193
2018	1,179
2019	849
2020	555
2021	467
2022 and thereafter	3,398
Total	$	7,641

Capital Leases

The Corporation leases certain buildings under capital leases. The lease arrangements require monthly payments through 2036.

The Corporation has included these leases in premises and equipment as follows:



	2016			2015
Buildings	$	5,572		$	3,537
Accumulated depreciation	(540		)	(232		)
Net book value	$	5,032		$	3,305

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments as of December 31, 2016 (in thousands):



Year	Amount
2017	$	367
2018	367
2019	367
2020	376
2021	388
2022 and thereafter	4,422
Total minimum lease payments	6,287
Less amount representing interest	1,565
Present value of net minimum lease payments	$	4,722