Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Major classifications of premises and equipment at December 31, 2018 and 2017 are summarized as follows (dollars in thousands):



	December 31,
	2018			2017
Land	$	6,509		$	6,583
Buildings	28,075			26,713
Leasehold improvements	1,011			981
Furniture and equipment	17,521			17,677
	53,116			51,954
Accumulated depreciation	(26,441		)	(26,053		)
Premises and equipment, net	$	26,675		$	25,901

Depreciation expense for the years ended December 31, 2018, 2017, and 2016 was $1,775,000, $1,877,000, and $1,892,000, 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, 2018 are as follows (dollars in thousands):



	Minimum Lease
Year	Payments
2019	$	883
2020	747
2021	734
2022	708
2023	583
2024 and after	1,888
	$	5,543

Lease expense, a component of occupancy and equipment expense, for the years ended December 31, 2018, 2017, and 2016 was $919,000, $961,000, and $897,000, respectively.