Note 6 - Property and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 6. Property and Equipment

The major components of property and equipment at December 31, 2015 and 2014 were as follows:

(Dollars In Thousands)	2015		2014
Land	$	4,309	$	4,656
Buildings and improvements		8,611		8,720
Leasehold improvements		2,149		2,149
Furniture and equipment		3,113		3,074
Software		554		487
Construction in process		13		49
Property and equipment, total		18,749		19,135
Less accumulated depreciation and amortization		4,741		4,235
Property and equipment, net	$	14,008	$	14,900

Depreciation and amortization expense was $762 thousand and $657 thousand for the years ended December 31, 2015 and 2014, respectively.

Leases

The Company currently leases its main office under a non-cancelable lease agreement. The original lease expired on December 31, 2015, which provided an option to extend the lease for two additional five-year periods. The lease was renewed for one additional term of ten years and it provides an option to extend the lease for one additional ten-year tem at expiration. The newly negotiated lease expires December 31, 2025. Terms of the new agreement provide for an annual rental increase, beginning January 1, 2017, based on a published inflation index, not to exceed three percent over the rent for the immediately preceding lease year. The Company currently leases a branch location under a non-cancelable lease agreement. Terms of the agreement provide for an annual rental increase based on a published inflation index, not to exceed three percent over the rent for the immediately preceding lease year. The lease expires on July 31, 2016 and provides an option to extend the lease for two additional five-year periods. The Company currently leases space to operate an automated teller machine under a non-cancelable lease agreement. The lease expires April 1, 2021 and provides an option to extend the lease for two additional five-year periods. Terms of the agreement provide for an annual rental increase of three percent over the rent for the immediately preceding lease year.

The current minimum annual lease payments under non-cancelable leases in effect at December 31, 2015 were as follows:

(Dollars In Thousands)	2014
2016	$	224
2017		168
2018		168
2019		169
2020		169
Thereafter		788
Total	$	1,686

Rent expense for the years ended December 31, 2015 and 2014 was $333 thousand and $322 thousand, respectively, and is included in occupancy and equipment expense on the Company’s consolidated statements of income.