PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Premises and equipment at December 31, 2015 and 2014 are as follows (in thousands):



	2015		2014
Land	$	4,803	$	4,803
Buildings	38,660		38,604
Projects in progress	167		132
Equipment and furniture	35,734		36,551
Leasehold improvements	5,759		6,094
	85,123		86,184
Less accumulated depreciation and amortization	55,726		53,897
Net book value	$	29,397	$	32,287

Depreciation expense was $4.0 million, $3.9 million and $3.2 million for 2015, 2014, and 2013, respectively.

Operating Leases

The Corporation leases certain branch properties under operating leases. Rent expense was $1.3 million, $1.5 million and $1.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Rent commitments, before considering renewal options that generally are present, were as follows (in thousands):



Year	Estimated Expense
2016	$	1,166
2017	1,143
2018	1,143
2019	830
2020	559
2021 and thereafter	3,590
Total	$	8,431

Capital Leases

The Corporation leases certain buildings under capital leases. The lease arrangements require monthly payments through 2030.

The Corporation has included these leases in premises and equipment as follows:



	2015			2014
Buildings	$	3,537		$	3,537
Accumulated depreciation	(232		)	—
Net book value	$	3,305		$	3,537

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 as of December 31, 2015 (in thousands):



Year	Amount
2016	$	234
2017	234
2018	234
2019	234
2020	234
2021 and thereafter	2,407
Total minimum lease payments	3,577
Less amount representing interest	704
Present value of net minimum lease payments	$	2,873