Bank Premises and Equipment, Net

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

The major classes of bank premises and equipment and the total accumulated depreciation at December 31, 2016 and 2015 were as follows:



	December 31,
	2016		2015
	(in thousands)
Land	$	6,729	$	6,729
Buildings and improvements	17,928		18,632
Furniture and equipment	6,876		8,824
	$	31,533	$	34,185
Less accumulated depreciation	11,364		13,221
Bank premises and equipment, net	$	20,169	$	20,964

Depreciation expense on buildings and improvements was $484 thousand, $470 thousand, and $446 thousand for the years ended 2016, 2015, and 2014, respectively. Depreciation expense on furniture and equipment was $448 thousand, $373 thousand, and $326 thousand for the years ended 2016, 2015, and 2014, respectively.

As of December 31, 2016, 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, 2016 under this lease was due as follows:



	December 31, 2016
	(in thousands)
2017	$	200
2018	200
2019	200
2020	213
2021	220
Thereafter	1,944
	$	2,977

The total building and equipment rental expense was $236 thousand, $271 thousand, and $135 thousand in 2016, 2015, and 2014, respectively.

On June 10, 2015, the Company purchased the land on which one of its retail branches resides. 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.