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Premises and Equipment
12 Months Ended
Dec. 31, 2014
Premises and Equipment [Abstract]  
Premises and Equipment

 

NOTE 6: PREMISES AND EQUIPMENT

 

The components of premises and equipment included in the accompanying consolidated balance sheets are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

2014

2013

Estimated Useful Lives (In years)

Land

$

332 

$

332 

N/A

Bank premises

 

6,789 

 

6,782 

39

Leasehold improvements

 

9,936 

 

9,276 

520

Furniture, equipment, and software

 

19,346 

 

17,694 

37

Total gross fixed assets

 

36,403 

 

34,084 

 

Less: accumulated depreciation and amortization

 

20,911 

 

18,512 

 

Total net fixed assets

$

15,492 

$

15,572 

 

 

Depreciation and amortization expense related to premises and equipment amounted to $2.45 million, $2.18 million and $1.95 million in 2014, 2013 and 2012, respectively.

 

We occupy certain banking offices under non-cancellable operating lease agreements expiring at various dates over the next 20 years. The majority of leases have multiple options with escalation clauses for increases associated with the cost of living or other variable expenses over time. Rent expense on these properties totaled $1.32 million, $1.20 million and $1.08 million for the years ended December 31, 2014, 2013 and 2012, respectively.

 

Minimum lease payments on these properties subsequent to December 31, 2014 are as follows:

 

 

 

 

 

 

(In thousands)

Amount

2015

$

1,554 

2016

 

1,385 

2017

 

1,210 

2018

 

953 

2019

 

908 

Thereafter

 

5,844 

Total

$

11,854 

 

We entered into a sale leaseback arrangement for our principal office in South Burlington, Vermont, in June 2008. The deferred gain on the sale leaseback transaction resulted in a $423 thousand offset to rent expense per year through 2017 and $212 thousand in 2018. The deferred gain included in other liabilities totaled $1,481 thousand and $1,904 thousand at December 31, 2014 and 2013, respectively.

 

We entered into a sale leaseback arrangement for one of our branch locations in Burlington, Vermont in December 2013. The deferred gain on the sale leaseback transaction will result in a $93 thousand offset to rent expense per year through 2023. The deferred gain included in other liabilities totaled $841 thousand and $934 thousand at December 31, 2014 and 2013.