Premises and Equipment

12 Months Ended

Dec. 31, 2018

NOTE 7, Premises and Equipment

Premises and equipment consisted of the following at December 31:

	2018		2017
	(in thousands)
Land	$	8,098	$	7,663
Buildings		39,132		37,944
Construction in process		161		137
Leasehold improvements		861		861
Furniture, fixtures and equipment		18,904		19,675
		67,156		66,280
Less accumulated depreciation and amortization		30,418		29,083
	$	36,738	$	37,197

Depreciation expense for the years ended December 31, 2018 and 2017 amounted to $2.5 million and $2.7 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, 2018 under noncancellable leases is $781 thousand which is due as follows (in thousands):

2019	$	331
2020		256
2021		111
2022		83
Total	$	781

The aggregate rental expense of premises and equipment was $349 thousand and $345 thousand for years ended December 31, 2018 and 2017, respectively.