Note 7 - Premises and Equipment

12 Months Ended

Dec. 31, 2017

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, 2017

and

2016.

(Amounts in thousands)
Premises and Equipment	2017			2016
Land	$	2,063		$	2,063
Land improvements		241			223
Bank buildings		12,976			12,931
Furniture, fixtures and equipment		12,639			12,130
Software		1,634			1,637
Assets not yet placed in service		337			429
Total premises and equipment		29,890			29,413
Less: accumulated depreciation and amortization		(15,142	)		(13,187	)
Premises and equipment, net	$	14,748		$	16,226

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

$2.1

million,

$1.9

million, and

$1.5

million, for the years ended

December 31, 2017,

2016

and

2015,

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

1

5,

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.