PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7—PREMISES AND EQUIPMENT

Premises and equipment are summarized as follows:

	Estimated Useful Life (Years)		2014				2013
	(Dollars in Thousands)
Land		—		$	2,403			$	2,403
Buildings		5 – 40			16,490				13,675
Furniture, fixtures and equipment		2 – 20			24,809				17,604
Leasehold improvements		5 – 30			10,757				3,184
Subtotal					54,459				36,866
Less: accumulated depreciation and amortization					32,977				23,185
Subtotal					21,482				13,681
Less: fair value adjustment for leases					(829	)			—
Total premises and equipment, net				$	20,653			$	13,681

Depreciation and amortization expense of premises and equipment for the three years ended December 31, amounted to $1.5 million in 2014 and $0.9 million in 2013 and 2012.

Capital Leases: As a result of the Merger, the Company acquired lease agreement for a building under a capital lease. The lease arrangement requires monthly payments through 2028.

The Company has included this lease in premises and equipment as follows (dollars in thousands):

	2014			2013
Capital Lease		$	3,422		$	—
Less: accumulated amortization			1,026			—
		$	2,396		$	—

The following is a schedule by year of future minimum lease payments under the capitalized lease, together with the present value of net minimum lease payments at December 31, 2014 (dollars in thousands):

2015	$	291
2016		292
2017		292
2018		294
2019		321
Thereafter		3,018
Total minimum lease payments		4,508
Less amount representing interest		1,509
Present value of net minimum lease payments	$	2,999

Operating Leases: Occupancy and equipment expense includes rentals for premises and equipment of $1,557,000 in 2014, $1,094,000 in 2013 and $805,000 in 2012. At December 31, 2014, the Company was obligated under a number of noncancelable leases for premises and equipment, many of which provide for increased rentals based upon increases in real estate taxes and the cost of living index. These leases, most of which have renewal provisions, are principally operating leases.

2015	$	2,062
2016		1,902
2017		1,548
2018		1,493
2019		1,326
Thereafter		7,509