PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT

NOTE 8 — PREMISES AND EQUIPMENT

December 31	2017		2016
Land	$	20,979	$	18,662
Buildings		74,842		68,584
Furniture and equipment		54,749		49,834
Total cost		150,570		137,080
Accumulated depreciation		(68,132)		(60,654)
Net	$	82,438	$	76,426

Depreciation expense was $8,198,  $7,289, and $6,410 in 2017, 2016 and 2015.

Operating Leases: The Company leases certain branch properties under operating leases. Rent expense less rental income was $2,501,  $2,014, and $1,712 for 2017, 2016, and 2015. Rent commitments, before considering renewal options that generally are present, were as follows:

2018	$	2,733
2019		2,345
2020		1,931
2021		1,796
2022		1,066
Thereafter		4,200
Total	$	14,071

Capital Leases:  The Company leases certain land and buildings under a capital lease.  The lease arrangements require monthly payments through 2037.

The Company has included this lease in premises and equipment as follows:

December 31,	2017		2016
Land and buildings	$	1,342	$	1,342
Accumulated depreciation		(185)		(126)
Net	$	1,157	$	1,216

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 2017:

2018	$	96
2019		96
2020		96
2021		96
2022		96
Thereafter		1,471
Total minimum lease payments	$	1,951
Less amount representing interest		(670)
Present value of net minimum lease payments	$	1,281