PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

NOTE 8: PREMISES AND EQUIPMENT

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


					Estimated
					Useful Lives
(In thousands)	2015		2014		(In years)
Land	$	332	$	332	N/A
Bank premises		6,812		6,789	39
Leasehold improvements		10,789		9,936	5 – 20
Furniture, equipment, and software		21,040		19,346	3 – 7
Total gross fixed assets		38,973		36,403
Less: accumulated depreciation and amortization		23,943		20,911
Total net fixed assets	$	15,030	$	15,492

Depreciation and amortization expense related to premises and equipment amounted to $2.11 million, $2.45 million and $2.18 million in 2015, 2014 and 2013, 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 $1.30 million, $1.32 million and $1.20 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Minimum lease payments on these properties subsequent to December 31, 2015 are as follows:


(In thousands)	Amount
2016	$	1,444
2017		1,250
2018		1,168
2019		816
2020		710
Thereafter		3,619
Total	$	9,007

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 $1.06 million and $1.48 million at December 31, 2015 and 2014, 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 $747 thousand and $841 thousand at December 31, 2015 and 2014.