PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

PREMISES AND EQUIPMENT

4.  PREMISES AND EQUIPMENT

The following table presents premises and equipment as of December 31,

(In thousands)	2019		2018
Land and land improvements	$	6,332	$	6,243
Buildings		12,741		12,653
Furniture and equipment		21,594		20,644
Leasehold improvements		12,228		11,943
Projects in progress		475		145
Capital lease asset		—		11,237
		53,370		62,865
Less: accumulated depreciation		32,457		35,457
Total	$	20,913	$	27,408

The Company has classified capital leases as a finance lease right-of-use asset under the new lease guidance for 2019.  Capital leases were including in premises and equipment for 2018.

The following table presents capital leases as of December 31,

(In thousands)	2019		2018
Land and buildings	$	11,237	$	11,237
Less: accumulated depreciation		6,159		5,411
Total	$	5,078	$	5,826

Projects in progress represents costs associated with renovations to the Company’s headquarters in addition to smaller renovation or equipment installation projects at other locations.

The Company recorded depreciation expense of $3.1 million, $3.1 million and $3.3 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company leases its corporate headquarters building under a capital lease, classified as a finance lease right-of-use asset under the new lease guidance for 2019. The lease arrangement requires monthly payments through 2025.  Related depreciation expense of $607,000 is included in each of the 2019, 2018 and 2017 results.

The Company also leases its Gladstone branch after completing a sale-leaseback transaction involving the property in 2011. The lease arrangement requires monthly payments through 2031. The deferred gain was removed as a cumulative-effect adjustment upon adoption of the new accounting guidance in topic 842 effective January 1, 2019.Related depreciation expense and accumulated depreciation of $141,000 is included in each of the 2019, 2018 and 2017 results.

The following is a schedule by year of future minimum lease payments under finance lease right-of-use asset, together with the present value of net minimum lease payments as of December 31, 2019:

(In thousands)
2020	$	1,195
2021		1,233
2022		1,391
2023		1,456
2024		1,456
Thereafter		2,283
Total minimum lease payments		9,014
Less: amount representing interest		1,416
Present value of net minimum lease payments	$	7,598