Premises and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises and Equipment Disclosure [Text Block]

Note 6 - Premises and Equipment

Premises and equipment are summarized as follows:

	Estimated
	Useful Life
	(Years)	2015		2014
	(dollars in Thousands)
Land	-	$	2,403	$	2,403
Buildings	20-40		16,490		16,490
Furniture, fixtures and equipment	3-7		27,235		24,809
Leasehold improvements	10-20		12,230		10,757
Subtotal			58,358		54,459
Less: accumulated depreciation and
amortization			35,291		32,977
Subtotal			23,067		21,482
Less: fair value adjustment for
acquired leases			(734)		(829)
Total premises and equipment, net		$	22,333	$	20,653

Depreciation and amortization expense of premises and equipment was $2.3 million, $1.5 million and $0.9 million for 2015, 2014 and 2013, respectively.

Capital Leases: As a result of the Merger, the Company acquired a lease agreement for a building under a capital lease. The lease arrangement requires monthly payments through 2028.

The Company has included this lease in premises and equipment as follows (dollars in thousands):

	2015		2014
Capital Lease	$	3,422	$	3,422
Less: accumulated amortization		1,198		1,026
	$	2,224	$	2,396

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments at December 31, 2015 (dollars in thousands):

2016	$	292
2017		292
2018		292
2019		321
2020		321
Thereafter		2,699
Total minimum lease payments		4,217
Less amount representing interest		1,332
Present value of net minimum
lease payments	$	2,885

Operating Leases: Occupancy and equipment expense includes rentals for premises and equipment of $2,136,000 in 2015, $1,557,000 in 2014 and $1,094,000 in 2013. At December 31, 2014, the Company was obligated under a number of noncancelable leases for premises and equipment, many of which provide for increased rentals based upon increases in real estate taxes and the cost of living index. These leases, most of which have renewal provisions, are principally operating leases.

Future minimum lease payments under these leases are as follows (dollars in thousands)

2016	$	1,915
2017		1,548
2018		1,481
2019		1,350
2020		1,284
Thereafter		5,463