Premises and Equipment

12 Months Ended

Dec. 31, 2014

NOTE 6, Premises and Equipment

Premises and equipment consisted of the following at December 31:

	2014		2013
	(in thousands)
Land	$	7,261	$	7,261
Buildings		38,301		24,101
Construction in process		291		13,316
Leasehold improvements		906		906
Furniture, fixtures and equipment		19,391		17,443
		66,150		63,027
Less accumulated depreciation and amortization		24,075		22,481
	$	42,075	$	40,546

The majority of the decrease in construction in process is due to the completion of the Company's new corporate headquarters.

Depreciation expense for the years ended December 31, 2014 and 2013 amounted to $2.3 and $2.0 million, respectively.

The Company has noncancellable leases on premises and equipment expiring at various dates, not including extensions, to the year 2019. Certain leases provide for increased annual payments based on increases in real estate taxes and the Consumer Price Index.

The total approximate minimum rental commitment at December 31, 2014 under noncancellable leases is $731 thousand which is due as follows (in thousands):

2015	$	254
2016		162
2017		158
2018		89
2019		68
Total	$	731

The aggregate rental expense of premises and equipment was $281 thousand and $277 thousand for 2014 and 2013, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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