PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

6. Premises, Equipment and Leasehold Improvements

Premises, equipment and leasehold improvements are summarized as follows:

	December 31,
	2015			2014
Bank buildings	$	1,824,613		$	1,824,613
Land		838,075			838,075
Leasehold purchase		30,000			30,000
Lease improvements		687,333			684,083
Construction in process		11,754			11,754
Equipment		3,070,783			2,940,401
		6,462,558			6,328,926
Accumulated depreciation		(4,173,330	)		(3,976,503	)
Total	$	2,289,228		$	2,352,423

Depreciation and amortization on our bank premises and equipment charged to operating expense totaled $196,827 in 2015, $200,178 in 2014, and $192,844 in 2013.

We entered into agreements to lease equipment and office facilities under non-cancellable operating lease agreements expiring on various dates through 2039. We may, at our option, extend the lease of our office facility at 256 Meeting Street in Charleston, South Carolina, for two additional ten year periods, extend the lease of our Summerville office at 100 North Main Street for two additional ten year periods, and extend the land lease where the Mt. Pleasant office is located for six additional five year periods. In addition, we rent office space at 1071 Morrison Drive Charleston, South Carolina, to house our Mortgage Department. This lease renews every two years. Management intends to exercise its option on the lease agreements. Lease payments below include the lease renewals. Minimum rental commitments for these leases as of December 31, 2015 are as follows:

2016	$	631,652
2017		615,122
2018		622,890
2019		614,103
2020		591,067
2021 and thereafter		5,322,336
Total	$	8,397,170

Total rental expense was $591,058, $572,395 and $555,646 in 2015, 2014 and 2013, respectively.

On January 28, 2014, we signed a lease to open a banking office located on Highway 78, North Charleston, South Carolina (copy of the lease incorporated as Exhibit 10.8 in the 2013 10-K and copy of the Assignment and Assumption of Lease incorporated as Exhibit 10.9, First Amendment to the Lease incorporated as Exhibit 10.10 and Second Amendment to the Lease incorporated as Exhibit 10.11 of this 10-K). The building is expected to be completed in the future. Rental payments do not commence until we take control of our space.