PREMISES AND EQUIPMENT

12 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

7.	PREMISES AND EQUIPMENT

Premises and equipment consisted of the following at the dates indicated (in thousands):

	March 31,
	2017			2016

Land	$	4,710		$	4,177
Buildings and improvements		15,281			13,974
Leasehold improvements		1,666			1,286
Furniture and equipment		10,243			9,876
Building under capitalized lease		2,956			2,956
Construction in progress		720			720
Total		35,576			32,989
Less accumulated depreciation and amortization		(19,344	)		(18,394	)
Premises and equipment, net	$	16,232		$	14,595

Depreciation and amortization expense was $1.1 million, $1.3 million and $1.4 million for the years ended March 31, 2017, 2016 and 2015, respectively.

The Company has a capital lease for the shell of the building constructed as the Company's operations center which expires in November 2039. For the years ended March 31, 2017, 2016 and 2015, the Company recorded $77,000, $89,000 and $113,000, respectively, in amortization expense related to this capital lease. At March 31, 2017 and 2016, accumulated amortization for the capital lease totaled $1.2 million and $1.1, million respectively.

In March 2010, the Company sold two of its branch locations. The Company maintains a substantial continuing involvement in the locations through various non-cancellable operating leases that contain certain renewal options. The resulting gain on sale of $2.1 million was deferred and is being amortized over the lives of the respective leases. At March 31, 2017, the remaining deferred gain was $1.0 million and is included in accrued expenses and other liabilities in the accompanying consolidated balance sheets.

The Company is obligated under various noncancellable lease agreements for land and buildings that require future minimum rental payments, exclusive of taxes and other charges. The following is a schedule of future minimum lease payments under the Company's capital lease together with the present value of net minimum lease payments and the future minimum rental payments required under operating leases that have initial or noncancellable lease terms in excess of one year as of March 31, 2017 (in thousands):

Year Ending March 31:	Operating Leases		Capital Lease
2018	$	1,660	$	198
2019		1,555		201
2020		1,438		205
2021		896		208
2022		668		212
Thereafter		2,612		4,056
Total minimum lease payments	$	8,829		5,080
Less amount representing interest				(2,626	)
Present value of net minimum lease payments			$	2,454

Rent expense was $1.8 million, $1.8 million and $1.9 million for the years ended March 31, 2017, 2016 and 2015, respectively.