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Note 8 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

Note 8.

Commitments and Contingencies


Operating leases


The Company has non-cancelable operating leases for seven of its branch banking offices and for administrative and operational activities, which expire on various dates through 2024. Most of the leases contain rent escalation provisions, as well as renewal options for one or more periods. The last potential year the leases can be extended through is 2024. Under these lease agreements, the Company is required to pay certain operating costs such as insurance and property taxes. The Company also leases certain equipment under cancelable and non-cancelable arrangements.


Future minimum rental commitments under the terms of these leases by year and in the aggregate, are as follows:


Years Ending

  

Amount

  

December 31,

  

(in thousands)

  
         

2016

   $ 932  

2017

     357  

2018

     159  

2019

     138  

2020

     62  

Thereafter

     262  
    $ 1,910  

Total rental expense, which is charged to operations on a straight line basis, for cancelable and non-cancelable operating leases was $1.1 million, $1.6 million and $2.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. During 2015 and 2014, the Company leased excess space on rental properties and recognized rental income of $402,000 and $355,000 for the year ended December 31, 2015 and December 31, 2014, respectively. Income from subleases included in non-interest expense was $71,000 for the year ended December 31, 2013. As of December 31, 2015, future minimum rentals to be received under non-cancelable subleases were $2.2 million.


Employment Agreements


The Company has a severance agreement for each of the Executive Vice Presidents that provides for severance equal to 12 months of current salary if the EVP is terminated within 12 months of a change of control of Patriot. The Company also has an employment agreement with Chief Executive officer that has been extended through March 2017.


Legal Matters


Neither the Company nor the Bank has any pending legal proceedings, other than ordinary routine litigation, incidental to its business, to which the Company or the Bank is a party or any of its property is subject. Management and its legal counsel are of the opinion that the ultimate disposition of these routine matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.