Bank Premises and Equipment, Net

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

The major classes of bank premises and equipment and the total accumulated depreciation at December 31, 2017 and 2016 were as follows:



	December 31,
	2017		2016
	(in thousands)
Land	$	6,729	$	6,729
Buildings and improvements	17,970		17,928
Furniture and equipment	7,100		6,876
	$	31,799	$	31,533
Less accumulated depreciation	12,220		11,364
Bank premises and equipment, net	$	19,579	$	20,169

Depreciation expense on buildings and improvements was $484 thousand, $484 thousand, and $470 thousand for the years ended 2017, 2016, and 2015, respectively. Depreciation expense on furniture and equipment was $462 thousand, $448 thousand, and $373 thousand for the years ended 2017, 2016, and 2015, respectively.

As of December 31, 2017, 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, 2017 under this lease was due as follows:



	December 31, 2017
	(in thousands)
2018	$	200
2019	200
2020	213
2021	220
2022	220
Thereafter	1,724
	$	2,777

The total building and equipment rental expense was $232 thousand, $236 thousand, and $271 thousand in 2017, 2016, and 2015, 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 fair 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.