PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

Premises and equipment at December 31, 2017 and 2016 are as follows (in thousands):

	2017		2016
Land	$	4,803	$	4,803
Buildings	41,045		40,831
Projects in progress	357		—
Equipment and furniture	37,545		37,072
Leasehold improvements	5,465		5,445
	89,215		88,151
Less accumulated depreciation and amortization	62,558		59,228
Net book value	$	26,657	$	28,923

Depreciation expense was $3.7 million, $4.2 million and $4.0 million for 2017, 2016, and 2015, respectively.

Operating Leases

The Corporation leases certain branch properties under operating leases.  Rent expense was $1.2 million, $1.2 million and $1.3 million for the years ended December 31, 2017, 2016 and 2015, respectively.  Rent commitments, before considering renewal options that generally are present, were as follows (in thousands):

Year	Estimated Expense
2018	$	1,121
2019	902
2020	737
2021	732
2022	732
2023 and thereafter	4,369
Total	$	8,593

Capital Leases

The Corporation leases certain buildings under capital leases.  The lease arrangements require monthly payments through 2036.

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

	2017			2016
Buildings	$	5,572		$	5,572
Accumulated depreciation	(874		)	(540		)
Net book value	$	4,698		$	5,032

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, 2017 (in thousands):

Year	Amount
2018	$	367
2019	367
2020	376
2021	388
2022	391
2023 and thereafter	4,031
Total minimum lease payments	5,920
Less amount representing interest	1,403
Present value of net minimum lease payments	$	4,517