Premises and Equipment and Held for Sale Premises and Equipment

12 Months Ended

Dec. 31, 2016

Premises and Equipment and Held for Sale Premises and Equipment [Abstract]

Premises and Equipment and Held for Sale Premises and Equipment

NOTE 9 - PREMISES AND EQUIPMENT AND HELD FOR SALE PREMISES AND EQUIPMENT

A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2016 and 2015 follows:

	December 31,
(dollars in thousands)	2016	2015
Land	$                    4,172	$                    4,172
Building and improvements	22,586	19,737
Furniture and equipment	8,989	8,310
Automobiles	313	382
Total cost	36,060	32,601
Less accumulated depreciation	13,855	12,445
Premises and equipment, net	$                  22,205	$                  20,156

Certain Bank facilities are leased under various operating leases. Rent expense was $723,000,  $701,000 and $647,000 for the years ended December 31, 2016,  2015 and 2014, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2016:

(dollar in thousands)
2017	$                      739
2018	749
2019	628
2020	518
2021	531
Thereafter	4,457
Total	$                    7,622

During the year ended December 31, 2015, the Company agreed to sell its King George, Virginia branch building and equipment to a credit union. The required conditions were met during the third quarter of 2015 to classify the asset as held for sale (“HFS”) under FASB 360-10-45-9 which addresses accounting and reporting for long-lived assets to be disposed of by sale. FASB ASC 360-10-35-43 states that a long-lived asset classified as HFS should be measured at the lower of carrying amount or fair value less cost to sell. Based on the contracted sales price, the Company recorded an impairment of $426,000 during the third quarter of 2015.  The transaction closed on January 28, 2016. As of December 31, 2016, the Company had a small office condo held for sale with a fair value of $345,000.