PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

NOTE 8 — PREMISES AND EQUIPMENT

December 31	2016		2015
Land	$	18,662	$	15,491
Buildings		68,584		58,175
Furniture and equipment		49,834		43,838
Total cost		137,080		117,504
Accumulated depreciation		(60,654)		(54,531)
Net	$	76,426	$	62,973

Depreciation expense was $7,289,  $6,410, and $5,886 in 2016, 2015 and 2014.

Operating Leases: The Company leases certain branch properties under operating leases. Rent expense less rental income was $2,014,  $1,712, and $1,376 for 2016, 2015, and 2014. Rent commitments, before considering renewal options that generally are present, were as follows:

2017	$	1,965
2018		1,905
2019		1,770
2020		1,452
2021		1,197
Thereafter		4,648
Total	$	12,937

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:

December 31,	2016		2015
Land and buildings	$	1,342	$	1,342
Accumulated depreciation		(126)		(68)
Net	$	1,216	$	1,274

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 2016:

2017	$	96
2018		96
2019		96
2020		96
2021		96
Thereafter		1,567
Total minimum lease payments	$	2,047
Less amount representing interest		(728)
Present value of net minimum lease payments	$	1,319