Bank Premises and Equipment

12 Months Ended

Dec. 31, 2015

Bank Premises and Equipment [Abstract]

Bank Premises and Equipment

Bank Premises and Equipment

The major categories of bank premises and equipment and accumulated depreciation at December 31 are summarized as follows:

(Dollars in thousands)	2015			2014
Land	$	11,976		$	7,612
Building and premises	58,607			48,402
Furniture, fixtures and equipment	25,487			22,323
Total bank premises and equipment	96,070			78,337
Accumulated depreciation	(42,583		)	(38,002		)
Net book value	$	53,487		$	40,335

Peoples depreciates its building and premises and furniture, fixtures and equipment over estimated useful lives generally ranging from 5 to 40 years and 2 to 10 years, respectively.  Depreciation expense was $4.6 million, $3.0 million and $2.6 million, in 2015, 2014 and 2013, respectively.

Leases

Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to ten years.  Certain leases contain renewal options and rent escalation clauses calling for rent increases over the term of the lease.  All leases which contain a rent escalation clause are accounted for on a straight-line basis. Rent expense on the leased properties and equipment was $988,000, $951,000, and $950,000 in 2015, 2014 and 2013, respectively.

Peoples Insurance Agency, LLC ("Peoples Insurance") previously leased a property from certain of its managers; however, in 2014 this lease expired and was not renewed.  Payments related to this lease totaled $64,000 and $151,000 in 2014 and 2013, respectively.  The terms of the lease were substantially the same as those offered for comparable transactions with non-related parties at the time the lease transaction was consummated.

The future minimum payments under noncancellable operating leases with initial or remaining terms of one year or more consisted of the following at December 31, 2015:

(Dollars in thousands)	Payments
2016	$	916
2017	612
2018	486
2019	224
2020	58
Thereafter	272
Total future operating lease payments	$	2,568