Premises and Equipment

12 Months Ended

Dec. 31, 2016

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)	2016		2015
	(dollars in Thousands)
Land	-	$	2,403	$	2,403
Buildings	20-40		16,027		16,490
Furniture, fixtures and equipment	3-7		29,039		27,235
Leasehold improvements	10-20		12,908		12,230
Subtotal			60,377		58,358
Less: accumulated depreciation and amortization			37,700		35,291
Subtotal			22,677		23,067
Less: fair value adjustment for acquired leases			(602)		(734)
Total premises and equipment, net		$	22,075	$	22,333

Depreciation and amortization expense of premises and equipment was $2.7 million, $2.3 million and $1.5 million for 2016, 2015 and 2014, 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):

	2016		2015
Capital Lease	$	3,422	$	3,422
Less: accumulated  amortization		1,369		1,198
	$	2,053	$	2,224

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, 2016 (dollars in thousands):

2017	$	292
2018		294
2019		321
2020		321
2021		321
Thereafter		2,376
Total minimum lease payments		3,925
Less amount representing interest		1,162
Present value of net minimum lease payments	$	2,763

Operating Leases: Occupancy and equipment expense includes rentals for premises and equipment of $2.5 million in 2016, $2.1 million in 2015 and $1.6 million in 2014. At December 31, 2016, the Company was obligated under a number of non-cancelable 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):

2017	$	2,149
2018		2,131
2019		2,003
2020		1,851
2021		1,565
Thereafter		6,400