Note 7 - Premises and Equipment

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE

7.

PREMISES AND EQUIPMENT

The following table presents the major components of premises and equipment at

December

31,

2016

and

2015.

(Amounts in thousands)
Premises and Equipment	2016			2015
Land	$	2,063		$	1,508
Land improvements		223			195
Bank buildings		12,931			9,099
Furniture, fixtures and equipment		12,130			9,743
Software		1,637			1,625
Assets not yet placed in service		429			295
Total premises and equipment		29,413			22,465
Less: accumulated depreciation and amortization		(13,187	)		(11,393	)
Premises and equipment, net	$	16,226		$	11,072

We record depreciation expense on a straight-line basis for all depreciable assets. Depreciation expense totaled

$1.9

million,

$1.5

million, and

$1.3

million, for the years ended

December

31,

2016,

2015

and

2014,

respectively. We have entered into a number of non-cancelable lease agreements with respect to various premises. See Note

16,

Commitments and Contingencies

in these

Notes to Consolidated Financial Statements

for more information regarding rental expense rent income, and minimum annual rental commitments under non-cancelable lease agreements.