PREMISES AND EQUIPMENT
 12 Months Ended
Dec. 31, 2016
PREMISES AND EQUIPMENT  
PREMISES AND EQUIPMENT

NOTE 8 — PREMISES AND EQUIPMENT

 

 

 

 

 

 

 

 

December 31

    

2016

    

2015

 

Land

 

$
18,662

 

$
15,491

 

Buildings

 

 
68,584

 

 
58,175

 

Furniture and equipment

 

 
49,834

 

 
43,838

 

Total cost

 

 
137,080

 

 
117,504

 

Accumulated depreciation

 

 
(60,654)

 

 
(54,531)

 

Net

 

$
76,426

 

$
62,973

 

 

Depreciation expense was $7,289,  $6,410, and $5,886 in 2016, 2015 and 2014.

Operating Leases: The Company leases certain branch properties under operating leases. Rent expense less rental income was $2,014,  $1,712, and $1,376 for 2016, 2015, and 2014. Rent commitments, before considering renewal options that generally are present, were as follows:

 

 

 

 

 

2017

    

$
1,965

 

2018

 

 
1,905

 

2019

 

 
1,770

 

2020

 

 
1,452

 

2021

 

 
1,197

 

Thereafter

 

 
4,648

 

Total

 

$
12,937

 

 

Capital Leases:  The Company leases certain land and buildings under capital leases.  The lease arrangement requires monthly payments through 2037.

The Company has included these leases in premises and equipment as follows:

 

 

 

 

 

 

 

 

December 31,

    

2016

 

2015

 

Land and buildings

 

$
1,342

 

$
1,342

 

Accumulated depreciation

 

 
(126)

 

 
(68)

 

Net

 

$
1,216

 

$
1,274

 

 

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments at year end 2016:

 

 

 

 

 

2017

    

$
96

 

2018

 

 
96

 

2019

 

 
96

 

2020

 

 
96

 

2021

 

 
96

 

Thereafter

 

 
1,567

 

Total minimum lease payments

 

$
2,047

 

Less amount representing interest

 

 
(728)

 

Present value of net minimum lease payments

 

$
1,319