Annual report pursuant to Section 13 and 15(d)

PREMISES AND EQUIPMENT

v3.6.0.2
PREMISES AND EQUIPMENT
 12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
PREMISES AND EQUIPMENT
NOTE 6.
PREMISES AND EQUIPMENT
 
Premises and equipment are summarized as follows:
 
 
 
December 31,
 
 
 
2016
 
2015
 
 
 
(In Thousands)
 
Land and building
 
$
13,323
 
$
13,293
 
Furniture and equipment
 
 
18,668
 
 
12,102
 
Leasehold improvements
 
 
7,469
 
 
6,042
 
Construction in progress
 
 
14,115
 
 
982
 
 
 
 
53,575
 
 
32,419
 
Accumulated depreciation
 
 
(13,261)
 
 
(12,985)
 
 
 
$
40,314
 
$
19,434
 
 
Increases in construction in progress are the result of the construction of a new headquarters building in Birmingham, Alabama. The new headquarters building will consist of approximately 97,500 square feet and will house the main office and all sales and operations staff currently housed in the Company’s current leased headquarters.
 
The provisions for depreciation charged to occupancy and equipment expense for the years ended December 31, 2016, 2015 and 2014 were $2,724,000, $2,219,000 and $1,838,000, respectively.
 
The Company leases land and building space under non-cancellable operating leases. Future minimum lease payments under non-cancellable operating leases at December 31, 2016 are summarized as follows:
 
 
 
(In Thousands)
 
2017
 
$
3,986
 
2018
 
 
3,743
 
2019
 
 
3,241
 
2020
 
 
2,610
 
2021
 
 
1,863
 
Thereafter
 
 
5,098
 
 
 
$
20,541
 
 
For the years ended December 31, 2016, 2015 and 2014, annual rental expense on operating leases was $3,759,000, $2,919,000 and $2,674,000, respectively.