Premises and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Major classifications of premises and equipment at December 31, 2016 and 2015 are summarized as follows (dollars in thousands):



	December 31,
	2016			2015
Land	$	6,891		$	6,077
Buildings	25,616			23,481
Leasehold improvements	1,078			1,399
Furniture and equipment	16,372			18,686
	49,957			49,643
Accumulated depreciation	(24,518		)	(26,076		)
Premises and equipment, net	$	25,439		$	23,567

Depreciation expense for the years ended December 31, 2016, 2015, and 2014 was $1,892,000, $1,833,000, and $1,688,000, respectively.

The Company has entered into operating leases for several of its branch and ATM facilities. The minimum annual rental payments under these leases at December 31, 2016 are as follows (dollars in thousands):



	Minimum Lease
Year	Payments
2017	$	878
2018	650
2019	155
2020	36
2021	13
2022 and after	23
	$	1,755

Lease expense, a component of occupancy and equipment expense, for the years ended December 31, 2016, 2015, and 2014 was $897,000, $990,000, and $657,000, respectively.