7.	PREMISES AND EQUIPMENT

Premises and equipment consisted of the following at the dates indicated (in thousands):

	March 31,
	2018			2017

Land	$	4,710		$	4,710
Buildings and improvements		15,281			15,281
Leasehold improvements		1,666			1,666
Furniture and equipment		10,783			10,243
Building under capitalized lease		2,956			2,956
Construction in progress		720			720
Total		36,116			35,576
Less accumulated depreciation and amortization		(20,333	)		(19,344	)
Premises and equipment, net	$	15,783		$	16,232

Depreciation and amortization expense was $1.2 million, $1.1 million and $1.3 million for the years ended March 31, 2018, 2017 and 2016, respectively.

The Company has a capital lease for the shell of the building constructed as the Company's operations center which expires in November 2039. For the years ended March 31, 2018, 2017 and 2016, the Company recorded $77,000, $77,000 and $89,000, respectively, in amortization expense related to this capital lease. At March 31, 2018 and 2017, accumulated amortization for the capital lease totaled $1.3 million and $1.2 million respectively.

In March 2010, the Company sold two of its branch locations. The Company maintains a substantial continuing involvement in the locations through various non-cancellable operating leases that contain certain renewal options. The resulting gain on sale of $2.1 million was deferred and is being amortized over the lives of the respective leases. At March 31, 2018, the remaining deferred gain was $857,000 and is included in accrued expenses and other liabilities in the accompanying consolidated balance sheets.

The Company is obligated under various noncancellable lease agreements for land and buildings that require future minimum rental payments, exclusive of taxes and other charges. The following is a schedule of future minimum lease payments under the Company's capital lease together with the present value of net minimum lease payments and the future minimum rental payments required under operating leases that have initial or noncancellable lease terms in excess of one year as of March 31, 2018 (in thousands):

Year Ending March 31:	Operating Leases		Capital Lease
2019	$	1,639	$	201
2020		1,453		205
2021		905		208
2022		677		212
2023		526		215
Thereafter		1,989		3,841
Total minimum lease payments	$	7,189		4,882
Less amount representing interest				(2,451	)
Present value of net minimum lease payments			$	2,431

Rent expense was $2.1 million, $1.8 million and $1.8 million for the years ended March 31, 2018, 2017 and 2016, respectively.