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	5 – 20
Furniture, equipment, and software		19,346		17,694	3 – 7
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.