Premises and Equipment

12 Months Ended

Dec. 31, 2016

NOTE 6, Premises and Equipment

Premises and equipment consisted of the following at December 31:

	2016		2015
	(in thousands)
Land	$	7,663	$	7,688
Buildings		37,890		37,848
Construction in process		43		555
Leasehold improvements		852		852
Furniture, fixtures and equipment		19,220		18,303
		65,668		65,246
Less accumulated depreciation and amortization		26,344		23,964
	$	39,324	$	41,282

Depreciation expense for the years ended December 31, 2016 and 2015 amounted to $2.7 and $2.5 million, respectively.

The Company has noncancellable leases on premises and equipment expiring at various dates, not including extensions, to the year 2020. 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, 2016 under noncancellable leases is $632 thousand which is due as follows (in thousands):

2017	$	236
2018		169
2019		150
2020		77
Total	$	632

The aggregate rental expense of premises and equipment was $239 thousand and $270 thousand for December 31, 2016 and 2015, respectively.