PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

Premises and equipment at December 31, 2018 and 2017 are as follows (in thousands):

	2018		2017
Land	$	4,803	$	4,803
Buildings	41,332		41,045
Projects in progress	31		357
Equipment and furniture	38,008		37,545
Leasehold improvements	6,174		5,465
	90,348		89,215
Less accumulated depreciation and amortization	65,368		62,558
Net book value	$	24,980	$	26,657

Depreciation expense was $3.4 million, $3.7 million and $4.2 million for 2018, 2017, and 2016, respectively.

Operating Leases

The Corporation leases certain branch properties under operating leases.  Rent expense was $1.1 million, $1.2 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.  Rent commitments, before considering renewal options that generally are present, were as follows (in thousands):

Year	Estimated Expense
2019	$	897
2020	888
2021	886
2022	770
2023	620
2024 and thereafter	3,848
Total	$	7,909

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:

	2018			2017
Buildings	$	5,572		$	5,572
Accumulated depreciation	(1,208		)	(874		)
Net book value	$	4,364		$	4,698

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, 2018 (in thousands):

Year	Amount
2019	$	367
2020	376
2021	388
2022	391
2023	391
2024 and thereafter	3,639
Total minimum lease payments	5,552
Less amount representing interest	1,248
Present value of net minimum lease payments	$	4,304