PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Premises and equipment, less accumulated depreciation and amortization, is summarized as follows.



(in thousands)	December 31, 2018		December 31, 2017
Land	$	6,220	$	5,987
Land improvements	3,842		3,591
Building and improvements	42,238		39,661
Leasehold improvements	4,092		4,092
Furniture and equipment	18,590		16,342
	74,982		69,673
Less accumulated depreciation and amortization	26,809		22,522
Premises and equipment, net	$	48,173	$	47,151

Depreciation and amortization expense amounted to $4.4 million in 2018, $4.2 million in 2017, and $3.2 million in 2016. The Company and certain of its subsidiaries are obligated under non-cancelable operating leases for facilities, certain of which provide for increased rentals based upon increases in cost of living adjustments and other indices. Rent expense under leases totaled $1.4 million in 2018, $1.1 million in 2017, and $0.8 million in 2016.

At December 31, 2018, the approximate minimum annual rentals under these non-cancelable lease agreements with remaining terms in excess of one year are as follows.



Years Ending December 31,	(in thousands)
2019	$	1,073
2020	1,065
2021	956
2022	902
2023	665
Thereafter	742
Total	$	5,403

During the second quarter of 2016, a $1.7 million lease termination liability and charge to other expense was recorded due to the closure of a branch, concurrent with the consummation date of the Baylake merger. Payments are expected to continue to the lessor for the remainder of the lease term. Since the remaining lease payments have been recognized against earnings, these remaining lease payments were excluded from the above table.