Bank Premises And Equipment

12 Months Ended

Dec. 31, 2015

Bank Premises And Equipment [Abstract]

6.BANK PREMISES AND EQUIPMENT

Components of bank premises and equipment are summarized as follows:


		As of December 31,
(dollars in thousands)	2015		2014

Land	$	2,865	$	2,775
Bank premises		13,023		12,955
Furniture, fixtures and equipment		9,659		10,012
Leasehold improvements		5,985		4,005

Total		31,532		29,747

Less accumulated depreciation and amortization		(14,809)		(14,901)

Bank premises and equipment, net	$	16,723	$	14,846

Depreciation expense, which includes amortization of leasehold improvements, was $1.3 million, $1.2 million and $1.2 million for the years ended December 31, 2015, 2014 and 2013. The estimated useful life was 40 years for bank premises, 3 to 7 years for furniture and fixtures and for leasehold improvements was the term of the lease.

In 2015, the Company leased its Green Ridge, Pittston, Peckville, Clarks Summit and Eynon branches under the terms of operating leases. In 2014, the Company leased all of the aforementioned branches in addition to West Pittston and the former Scranton branch. Rental expense was $0.3 million, $0.2 million and $0.3 million in 2015, 2014 and 2013. The future minimum lease payments for the Company’s branch network as of December 31, 2015 are as follows:


(dollars in thousands)	Amount

2016	$	248
2017		249
2018		250
2019		251
2020		245
2021 and thereafter		3,932

Total	$	5,175

During 2015, the Company relocated its West Pittston branch to a newly constructed building in Pittston. The Eynon branch will close during the first quarter of 2016, but the Company expects to make lease payments until the end of the lease term in 2020.

During the 2014 first quarter, the Company received through foreclosure the deed that secured the collateral for a non-owner occupied commercial real estate loan that was on non-accrual status. The loan, in the amount $1.0 million, was transferred from loans to foreclosed assets held-for-sale and then to bank premises. Currently the building has a tenant under a lease agreement expiring in 2018, but the Company expects to use the property for future facility expansion.