Bank Premises and Equipment

12 Months Ended

Dec. 31, 2012

Bank Premises and Equipment [Abstract]

The major categories of bank premises and equipment and accumulated depreciation at December 31 are summarized as follows:



(Dollars in thousands)	2012			2011
Land	$	7,039		$	5,662
Building and premises	34,943			32,046
Furniture, fixtures and equipment	18,789			18,483
Total bank premises and equipment	60,771			56,191
Accumulated depreciation	(33,758		)	(32,286		)
Net book value	$	27,013		$	23,905

Peoples depreciates its building and premises and furniture, fixtures and equipment over estimated useful lives generally ranging from 5 to 40 years and 2 to 10 years, respectively. Depreciation expense was $2,212,000, $1,967,000 and $1,943,000, in 2012, 2011 and 2010, respectively.

Leases

Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to ten years. Certain leases contain renewal options and rent escalation clauses calling for rent increases over the term of the lease. All leases which contain a rent escalation clause are accounted for on a straight-line basis. Rent expense was $887,000, $921,000, $916,000 in 2012, 2011 and 2010, respectively.

Peoples Insurance leases certain properties from certain of its directors. Payments related to these leases totaled $146,000, $141,000 and $166,000 in 2012, 2011 and 2010, respectively. The terms of these leases are substantially the same as those offered for comparable transactions with non-related parties at the time the lease transactions were consummated.

The future minimum payments under noncancellable operating leases with initial or remaining terms of one year or more consisted of the following at December 31, 2012: $764,000 in 2013, $497,000 in 2014, $330,000 in 2015, $323,000 in 2016, $280,000 in 2017 and $1,225,000 thereafter.

- 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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