Bank Premises and Equipment, Net

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

The major classes of bank premises and equipment and the total accumulated depreciation at December 31, 2015 and 2014 were as follows:



	December 31,
	2015		2014
	(in thousands)
Land	$	6,729	$	6,406
Buildings and improvements	18,632		17,290
Furniture and equipment	8,824		7,972
	$	34,185	$	31,668
Less accumulated depreciation	13,221		12,653
Bank premises and equipment, net	$	20,964	$	19,015

Depreciation expense on buildings and improvements was $470 thousand, $446 thousand, and $434 thousand for the years ended 2015, 2014, and 2013, respectively. Depreciation expense on furniture and equipment was $373 thousand, $326 thousand, and $368 thousand for the years ended 2015, 2014, and 2013, respectively.

As of December 31, 2015, one facility was under an operating lease, which expires in 2030. This lease requires payment of certain operating expenses and contains renewal options. The total minimum rental commitment at December 31, 2015 under this lease was due as follows:



	December 31, 2015
	(in thousands)
2016	$	200
2017	200
2018	200
2019	200
2020	213
Thereafter	2,164
	$	3,177

The total building and equipment rental expense was $271 thousand, $135 thousand, and $138 thousand in 2015, 2014, and 2013, respectively.

On June 10, 2015, the Company purchased the land on which one of its retail branches resided. The land was purchased subject to an existing lease and subsequently recorded at market value, resulting in a write down of the total purchase price. This write down appears in the Consolidated Statement of Income as a Cost to terminate operating lease.