NOTE 12 — OPERATING LEASES

The Corporation currently maintains seven operating leases for office locations. The first operating lease, for the Corporation's location in Birmingham, was originated in September 2005 and had an original term of 66 months with an option to renew for an additional five-year period. The original term of this was extended during 2011 for an additional three year term, again in 2014 for an additional three year term, and again in 2017 for an additional three year term.

The second operating lease, for a second location in Manistique, was executed in April 2010, the terms of which began at that time. The original term of this lease expired in 2013, and the third of the four consecutive renewal terms of two years each is in place.

The third operating lease, for a loan production office in Traverse City, was executed in May 2012, the terms of which began in August 2012. The original term of this lease expired in 2015 and automatically renewed at that time. The lease was renegotiated in 2016 for a term of 36-months, with two consecutive options to extend the lease for 36 months each.

The fourth operating lease was initiated in December 2013 as the Corporation consolidated its banking offices in Marquette. The original term of this lease is 15 years with options for two consecutive renewal terms of four years each.

The fifth operating lease, located in Troy, for the asset based lending office, was initiated in December 2013. The Corporation terminated this lease in early 2018.

With the acquisition of PFC, the Corporation acquired three additional operating leases for office locations. The first, for an additional location in Marquette, was executed in February 2011 with a term of five years and expired in 2016. The Corporation opted not to renew this lease, and subsequently closed that office location. The second, for the location in Negaunee was executed in September 2012 with an initial term of five years, expiring in 2017. This lease was renewed for one additional term of five years. The final, for a location in Ishpeming was executed in April 2008 for an initial term of five years. This lease was renewed in May 2013 for an additional five years.

Future minimum payments for base rent, by year and in the aggregate, under the initial terms of the operating lease agreements, consist of the following (dollars in thousands):


2018	$	772
2019		747
2020		608
2021		503
2022		499
Thereafter		3,124
Total	$	6,253

Rent expense for all operating leases amounted to $1.109 million in 2017, $1.053 million in 2016, and $.985 million in 2015.