Note 8 - Office Properties and Equipment

12 Months Ended

Dec. 31, 2017

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):

	201 7			201 6
Land and land improvements	$	10,583		$	10,896
Buildings and improvements		46,945			48,059
Furniture and equipment		13,256			13,126
Automobiles and other		222			222
Total		71,006			72,303
Accumulated depreciation		(20,460	)		(18,254	)
Office properties and equipment —net	$	50,546		$	54,049

Depreciation expense for each of the years ended

December

 

31,

2017,

2016

and

2015

was approximately

$3.4

million,

$3.7

million and

$3.3

million, respectively.

At

December 31, 2017,

office properties held for sale included

five

properties with an aggregate carrying value totaling

$2.2

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

December 31, 2017,

six

properties were sold at a net gain of

$27,000.

During the year ended

December 31, 2016,

three

properties were sold resulting in a net gain of

$1.0

million. Impairment charges of

$634,000

and

$1.1

million were recognized for the years ended

December 31, 2017

and

2016,

respectively. 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,

201

7,

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

Years Ending December 31	Amount
2018	$	768
2019		366
2020		287
2021		232
2022		203
2023 and thereafter		2,841
Total	$	4,697

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

one

lease where there is a loan outstanding between the Bank and the lessor. Total future minimum lease payments for the initial term of this lease and applicable renewal periods reflected in the table total approximately

$3.6

million. Total rent expense for the years ended

December 31, 2017,

2016

and

2015

amounted to

$839,000,

$874,000

and

$721,000,

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
2018	$	152
2019		71
2020		27
2021		11
2022		4
Total	$	265

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,

201

7,

2016

and

2015

amounted to

$437,000,

$441,000

and

$435,000,

respectively.