Premises and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 5. Premises and Equipment

A summary of premises and equipment at December 31, 2015 and 2014, is as follows (in thousands):

	2015		2014
Land and land improvements	$	7,012	$	3,529
Building and leasehold improvements		16,933		11,257
Furniture, fixtures and equipment		5,701		4,713
Construction in progress		188		352
		29,834		19,851
Accumulated depreciation		(4,796)		(3,912)
	$	25,038	$	15,939

The Company leases several branch locations and also has one ground lease under non-cancelable operating lease agreements. The leases expire between August 2016 and January 2018. Lease expense under the leases was $565,667 and $585,262 in 2015 and 2014, respectively. At December 31, 2015, the remaining minimum lease payments relating to these leases were as follows (in thousands):

2016	$	553
2017		172
2018		8

Depreciation expense was $992,746 and $788,380 for the years ended December 31, 2015 and 2014, respectively.

Related party transaction:

On September 25, 2014, the board of directors voted to approve the purchase of the Cornerstone Community Bank Miller Plaza Branch facility located at 835 Georgia Avenue, Chattanooga, Tennessee in the form of a condominium from Lamp Post Properties. The chairman of the board, Miller Welborn, previously owned 20% of Lamp Post Properties and, therefore, Mr. Welborn abstained from the September 25, 2014 vote. The purchase price of the building was $1.4 million and included two full floors and one partial floor of the building, parking, naming rights and signage privileges for the building, among certain other property rights. The transaction closed on February 24, 2015. As of October 1, 2015, Mr. Welborn has no ownership in Lamp Post Properties.