PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

NOTE 8 — PREMISES AND EQUIPMENT

December 31	2014			2013
Land	$	15,019		$	14,445
Buildings		55,312			50,638
Furniture and equipment		38,642			35,727
Total cost		108,973			100,810
Accumulated depreciation		(48,446	)		(44,853	)
Net	$	60,527		$	55,957

       Depreciation expense was $5,886, $5,783, and $5,440 in 2014, 2013 and 2012.

       Operating Leases: The Company leases certain branch properties under operating leases. Rent expense less rental income was $1,376, $1,056, and $1,126 for 2014, 2013, and 2012. Rent commitments, before considering renewal options that generally are present, were as follows:

2015	$	1,348
2016		1,053
2017		841
2018		807
2019		634
Thereafter		1,995
Total	$	6,678

       Capital Leases: The Company leases certain land and buildings under capital leases. The lease arrangement requires monthly payments through 2037.

       The Company has included these leases in premises and equipment as follows:

	2014
Land and buildings	$	1,342
Accumulated depreciation		(10	)
	$	1,332

       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 year end 2014:

2015	$	96
2016		96
2017		96
2018		96
2019		96
Thereafter		1,759
Total minimum lease payments	$	2,239
Less amount representing interest		(843	)
Present value of net minimum lease payments	$	1,396