Property and Equipment

12 Months Ended

Dec. 31, 2012

NOTE 5 – Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Components of property and equipment included in the consolidated balance sheets are as follows:

	December 31,
(dollars in thousands)	2012			2011
Land	$	3,523			3,523
Buildings		12,874			11,753
Leasehold Improvements		1,624			1,118
Furniture and equipment		5,020			4,312
Software		342			343
Construction in process		53			193
		23,436			21,242
Accumulated depreciation		(4,703	)		(3,900	)
Total property and equipment	$	18,733			17,342

The $1.1 million increase in buildings during the twelve months ended December 31, 2012 is related to the addition of a third retail office in Columbia, South Carolina, while the $506,000 increase in leasehold improvements during the twelve months ended December 31, 2012 is primarily related to the upfit of office space at the Company’s first retail office in Charleston, South Carolina. In addition, furniture and equipment increased $708,000 due to the purchase of assets to furnish the new offices in Columbia and Charleston.

Construction in process at December 31, 2012 and 2011 related to various bank-related equipment not yet placed in service. Depreciation and amortization expense for the years ended December 31, 2012, 2011 and 2010 was $979,000, $884,000, and $853,000, respectively. Depreciation is charged to operations utilizing a straight-line method over the estimated useful lives of the assets. The estimated useful lives for the principal items follow:

Type of Asset	Life in Years
Software		3
Furniture and equipment	5 to 7
Leasehold improvements	5 to 15
Buildings		40

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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