Premises and Equipment

12 Months Ended

Dec. 31, 2014

9.Premises and Equipment

The following table presents the components of premises and equipment at December 31, 2014 and 2013:



(in thousands)	2014		2013
Land	$	7,304	$	7,304
Land Improvements		1,210		1,174
Premises		25,112		25,183
Furniture and Equipment		16,343		17,333
Capital Lease		534		534
		50,503		51,528
Less accumulated depreciation		(24,874)		(24,623)
Total	$	25,629	$	26,905

The Corporation recorded depreciation expense of $1.9 million in 2014 and $2.0 million in 2013.

Pursuant to the terms of non-cancelable operating lease agreements for banking and subsidiaries’ offices and for data processing and telecommunications equipment in effect at December 31, 2014, future minimum rent commitments under these leases for future years are as follows: (i) $.8 million for 2015; (ii) $.7 million for 2016; (iii) $.7 million for 2017; (iv) $.6 million for 2018; (v) $.4 million for 2019; and (vi) $4.2 million thereafter. The leases contain options to extend for periods from one to five years, which are not included in the aforementioned amounts.

Total building and land rental expense amounted to $.5 million in 2014 and 2013, respectively.

- 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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