Note 8 - Office Properties and Equipment

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

8. OFFICE PROPERTIES AND EQUIPMENT

Office properties and equipment consisted of the following at

December

 

31

(in thousands):

	2016			2015
Land and land improvements	$	10,896		$	12,701
Buildings and improvements		48,059			53,742
Furniture and equipment		13,126			13,372
Automobiles and other		222			823
Total		72,303			80,638
Accumulated depreciation		(18,254	)		(16,997	)
Office properties and equipment—net	$	54,049		$	63,641

Depreciation expense for each of the years ended

December

 

31,

2016,

2015

and

2014

was approximately

$3.7

million,

$3.3

million and

$2.2

million, respectively.

At

December

31,

2016,

office properties held for sale included

seven

properties and an aircraft of which the Company is partial owner with aggregate carrying values totaling

$5.3

million. Office properties held for sale are carried at the lower of carrying amount or fair value less estimated costs to sell. Impairment charges of

$1.1

million were recognized for the year ended

December

31,

2016.

During the year ended

December

31,

2016,

three

properties were sold resulting in a net gain of

$1.0

million. Impairment charges and realized gains and losses on office properties held for sale are recorded in other noninterest expense in the consolidated statements of income.

Pursuant to the terms of noncancelable lease agreements in effect at

December

31,

2016,

pertaining to banking premises and equipment, future minimum rent commitments (in thousands) under various operating leases are as follows:

Years Ending December 31	Amount
2017	$	836
2018		688
2019		617
2020		531
2021		476
2022 and thereafter		6,862
Total	$	10,010

The leases contain options to extend for periods from

one

to

twenty

years. The cost of rentals in the renewal periods are not included above except for

two

leases where there are loans outstanding between the Bank and the lessors. Total future minimum lease payments for the initial term of these leases and applicable renewal periods reflected in the table total approximately

$8.8

million. Total rent expense for the years ended

December

31,

2016,

2015

and

2014

amounted to

$874,000,

$721,000

and

$484,000,

respectively.

The Company also leases certain of its banking premises to

third

parties under operating lease agreements. The following is a schedule by years of minimum future rentals receivable on noncancelable operating leases (in thousands):

Years Ending December 31	Amount
2017	$	217
2018		87
2019		18
2020		6
Total	$	328

The leases contain options to extend for periods up to

five

years. Such rentals are not included above. Total rental income for the years ended

December

31,

2016,

2015

and

2014

amounted to

$441,000,

$435,000

and

$285,000,

respectively.