PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2020

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)	2020		2019
Land and land improvements	$	6,332	$	6,332
Buildings		12,749		12,741
Furniture and equipment		22,911		21,594
Leasehold improvements		13,479		12,228
Projects in progress		555		475
		56,026		53,370
Less: accumulated depreciation		34,417		32,457
Total	$	21,609	$	20,913

The Company has classified capital leases as a finance lease right-of-use asset under the new lease guidance for 2019.  

The following table presents finance lease right-of-use assets as of December 31,

(In thousands)	2020		2019
Land and buildings	$	11,237	$	11,237
Less: accumulated depreciation		6,907		6,159
Total	$	4,330	$	5,078

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 for each of the years ended December 31, 2020, 2019 and 2018, 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 2020, 2019 and 2018 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 2020, 2019 and 2018 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, 2020:

(In thousands)
2021	$	1,233
2022		1,391
2023		1,456
2024		1,456
2025		939
Thereafter		1,344
Total minimum lease payments		7,819
Less: amount representing interest		1,066
Present value of net minimum lease payments	$	6,753