NOTE 7—PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows:

Depreciation expense was $1.5 million for year ended December 31, 2015, $1.1 million for year ended December 31, 2014 and $1.2 million for year ended December 31, 2013.

During June 2015 the Company added 14 branches, mostly in Wayne and Medina Counties, as part of the NBOH acquisition and in September 2015, 4 branches, mostly in Columbiana County, as part of the Tri-State acquisition.  All fixed assets were recorded at their fair market value.

During 2014, the Company purchased property located adjacent to its Canfield branch on South Broad Street in Canfield, for $395 thousand to house some investment, insurance and mortgage lending activities.  The building was put into service in June 2014.

The Company leases certain branch properties under operating leases. Rent expense was $332, $323, and $302 thousand for 2015, 2014 and 2013. In addition to rent expense, under the leases, common area maintenance and property taxes are paid and the amount can fluctuate according to the costs incurred. Rent commitments, before considering renewal options that generally are present, were as follows: