Premises and Equipment and Held for Sale Premises and Equipment

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016 follows:

	December 31,
(dollars in thousands)	2017	2016
Land	$                    4,172	$                    4,172
Building and improvements	23,038	22,586
Furniture and equipment	9,225	8,989
Automobiles	303	313
Total cost	36,738	36,060
Less accumulated depreciation	15,347	13,855
Premises and equipment, net	$                  21,391	$                  22,205

Certain Bank facilities are leased under various operating leases. Rent expense was $761,000,  $723,000 and $701,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2017:

(dollar in thousands)
2018	$                      747
2019	625
2020	514
2021	489
2022	415
Thereafter	4,019
Total	$                    6,809

As of December 31, 2016, the Company had a small office condo under contract held for sale with a fair value of $345,000 that was recorded as a non-recurring Level 2 asset at December 31, 2016. The contract on the property was cancelled during the three months ended March 31, 2017, and the asset was transferred and recorded as a non-recurring Level 3 asset. During the three months ended June 30, 2017, the property was sold for net proceeds of $ 392,000 with a gain on the sale of $47,000.

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.