Premises and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

The following summarizes the components of premises and equipment at December 31 for the years indicated:



(In Thousands)	Useful Life	2014			2013
Land			$2,600			$3,201
Furniture and equipment	3-7 years	11,363			9,988
Tenant improvements	2-15 years	8,019			6,776
Buildings	39 years	33,830			27,090
Total Premises and Equipment		55,812			47,055
Accumulated depreciation and amortization		(20,169		)	(18,731		)
Total Premises and Equipment, Net			$35,643			$28,324

Depreciation expense and amortization of leasehold improvements was $1.9 million, $1.8 million, and $1.7 million for the years ended December 31, 2014, 2013, and 2012, respectively.

Related Party Transactions: The Company paid Ken Brady Construction, Inc., $5.4 million, $1.2 million, and $547,000 in 2014, 2013, and 2012, respectively, for general contracting services related to several construction projects for the Bank. The president of Ken Brady Construction, Inc. is the son-in-law of Mr. Richard Lowell. Mr. Lowell served on the Board of the Company and the Bank since the inception of the Bank in 1990 until his death in February of 2015. Mr. Lowell had no ownership interest or other relationship in or with Ken Brady Construction, Inc. The transactions which occurred in 2014, 2013, and 2012 between the Bank and Ken Brady Construction, Inc., were reviewed and discussed by the Governance and Nominating Committee of the Company’s Board, and were approved by the Company’s Board. In all cases, Mr. Lowell abstained from the discussion and approval of these transactions.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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