Bank Premises And Equipment

12 Months Ended

Dec. 31, 2016

Bank Premises And Equipment [Abstract]

6.BANK PREMISES AND EQUIPMENT

Components of bank premises and equipment are summarized as follows:


		As of December 31,
(dollars in thousands)	2016		2015

Land	$	2,865	$	2,865
Bank premises		13,703		13,023
Furniture, fixtures and equipment		10,257		9,659
Leasehold improvements		5,996		5,985

Total		32,821		31,532

Less accumulated depreciation and amortization		(15,657)		(14,809)

Bank premises and equipment, net	$	17,164	$	16,723

Depreciation expense, which includes amortization of leasehold improvements, was $1.4 million, $1.3 million and $1.2 million for the years ended December 31, 2016, 2015 and 2014. The estimated useful life was 40 years for bank premises, 3 to 7 years for furniture and fixtures and for leasehold improvements was the term of the lease.

In 2016, the Company leased its Green Ridge, Pittston, Peckville, Clarks Summit and Eynon branches under the terms of operating leases. During the third quarter of 2016, the Company entered into a lease agreement for a new branch in Dallas and lease payments will begin when the branch opens for business, which is expected to occur during the fourth quarter of 2017. Rental expense was $0.3 million, $0.3 million and $0.2 million in 2016, 2015 and 2014. The future minimum lease payments for the Company’s branch network as of December 31, 2016 are as follows:


(dollars in thousands)	Amount

2017	$	263
2018		320
2019		322
2020		317
2021		290
2022 and thereafter		6,040

Total	$	7,552

During 2015, the Company relocated its West Pittston branch to a newly constructed building in Pittston. The Eynon branch closed during the first quarter of 2016, but the Company expects to make lease payments until the end of the lease term in 2020.

During the 2014 first quarter, the Company received through foreclosure the deed that secured the collateral for a non-owner occupied commercial real estate loan that was on non-accrual status. The loan, in the amount $1.0 million, was transferred from loans to foreclosed assets held-for-sale and then to bank premises. Currently the building has a tenant under a lease agreement expiring in 2018, but the Company expects to use the property for future facility expansion.