Premises and equipment, less accumulated depreciation and amortization, is summarized as follows as of December 31:

Depreciation and amortization expense amounted to $3.2 million in 2016, $2.4 million in 2015, and $2.3 million in 2014. The Company and certain of its subsidiaries are obligated under non-cancelable operating leases for facilities, certain of which provide for increased rentals based upon increases in cost of living adjustments and other indices.

At December 31, 2016, the approximate minimum annual rentals under these non-cancelable agreements with remaining terms in excess of one year are as follows:

During the second quarter of 2016, a $1.7 million lease termination liability and charge to other expense was recorded due to the closure of a branch, concurrent with the consummation date of the Baylake merger. Payments are expected to continue to the lessor for the remainder of the lease term. Since the remaining lease payments have been recognized against earnings, the remaining lease payments were excluded from the above table.