Premises, Equipment and Lease Commitments

Premises and equipment are summarized as follows:



	December 31, 2015			December 31, 2014
	(In thousands)
Land and land improvements	$	6,495		$	6,615
Office buildings	31,658			30,930
Furniture and equipment	26,544			26,444
Leasehold improvements	3,698			4,171
	68,395			68,160
Less accumulated depreciation and amortization	(42,171		)	(44,591		)
	$	26,224		$	23,569

Depreciation and amortization expense for the years ended December 31, 2015 and 2014 and the nine months ended December 31, 2013 was $2.9 million, $2.4 million and $1.9 million, respectively.

The Company leases 18 branch offices and office facilities under non-cancelable operating leases which expire on various dates through 2029. Future minimum payments under non-cancelable operating leases with initial terms of one year or more at December 31, 2015 are as follows:



Year Ending December 31,	Amount of Future Minimum Payments
	(In thousands)
2016	$	1,947
2017	1,872
2018	1,962
2019	1,693
2020	1,633
Thereafter	3,921
Total	$	13,028

For the years ended December 31, 2015 and 2014 and the nine months ended December 31, 2013, land and building lease rental expense was $1.9 million, $1.8 million, and $1.3 million, respectively.

In January 2015, the Bank completed the purchase of a new building located on the east side of Madison at a purchase price of $4.0 million. This facility, which houses the Bank's support departments, became operational during the second quarter of 2015. In May 2015, the Bank sold the Viroqua branch, which was a leased facility. The sale included furniture and equipment. The future lease payments for this facility have been removed from the table above presenting “Amount of Future Minimum Payments.” In September 2015, the Bank sold the Winneconne branch operations. The sales included furniture and equipment.

During 2015, the Bank completed several actions to improve overall operational efficiencies. As part of these initiatives, six retail bank branches in Wisconsin were consolidated. A gain on the sale of the Appleton Fox River Drive branch building, one of the consolidated branches, of $1.4 million was recorded in 2015. Lease termination expense of $1.5 million was recorded during 2015 for the consolidated Menasha and Madison branches. The remaining facilities in Oshkosh, Janesville, and Franklin were transferred to OREO. As of December 31, 2015, the Janesville and Franklin facilities remained in OREO.

In February 2014, the Bank entered into a purchase agreement with an unrelated third party to sell the Bank’s main office building located at 25 West Main Street, Madison, Wisconsin, the adjacent surface parking lot immediately behind the main office building at 115 South Carroll Street and the 261-stall parking ramp located at 126 South Carroll Street. The transaction closed on December 19, 2014 and a $1.4 million gain was recognized on the parcels that were not included in the subsequent lease between the Bank and the buyer. The Bank entered into a nine year lease to rent a portion of the building to house the branch located in the building and to provide additional office space. The future lease payments for this facility have been added to the table above presenting “Amount of Future Minimum Payments.” The gain of $6.4 million related to the leased space sold was deferred and is being amortized into income over the remaining term of the lease. During the years ended December 31, 2015 and 2014, the Bank recognized $1.4 million and $59,000, respectively, of the deferred gain.

In December 2014, the Bank sold the Richland Center branch, which was a leased facility, in rural Wisconsin. The sale included furniture and equipment. The future lease payments for this facility have been removed from the table above presenting “Amount of Future Minimum Payments.”