Premises and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Major classifications of premises and equipment at December 31, 2017 and 2016 are summarized as follows (dollars in thousands):



	December 31,
	2017			2016
Land	$	6,583		$	6,891
Buildings	26,713			25,616
Leasehold improvements	981			1,078
Furniture and equipment	17,677			16,372
	51,954			49,957
Accumulated depreciation	(26,053		)	(24,518		)
Premises and equipment, net	$	25,901		$	25,439

Depreciation expense for the years ended December 31, 2017, 2016, and 2015 was $1,877,000, $1,892,000, and $1,833,000, respectively.

The Company has entered into operating leases for several of its branch and ATM facilities. The minimum annual rental payments under these leases at December 31, 2017 are as follows (dollars in thousands):



	Minimum Lease
Year	Payments
2018	$	726
2019	215
2020	36
2021	13
2022	7
2023 and after	15
	$	1,012

Lease expense, a component of occupancy and equipment expense, for the years ended December 31, 2017, 2016, and 2015 was $961,000, $897,000, and $990,000, respectively.