Bank Premises and Equipment

12 Months Ended

Dec. 31, 2016

Bank Premises and Equipment [Abstract]

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



(Dollars in thousands)	2016			2015
Land	$	12,085		$	11,976
Building and premises	61,451			58,607
Furniture, fixtures and equipment	26,078			25,487
Total bank premises and equipment	99,614			96,070
Accumulated depreciation	(45,998		)	(42,583		)
Net book value	$	53,616		$	53,487

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 $5.1 million, $4.6 million and $3.0 million, in 2016, 2015 and 2014, 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 $1,073,000, $988,000, and $951,000 in 2016, 2015 and 2014, 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 in 2014. 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, 2016:



(Dollars in thousands)	Payments
2017	$	745
2018	731
2019	431
2020	217
2021	207
Thereafter	354
Total future operating lease payments	$	2,685