Bank Premises and Equipment

12 Months Ended

Dec. 31, 2013

Bank Premises and Equipment [Abstract]

Bank Premises and Equipment

Bank Premises and Equipment

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

(Dollars in thousands)	2013			2012
Land	$	6,802		$	7,039
Building and premises	38,281			34,943
Furniture, fixtures and equipment	20,350			18,789
Total bank premises and equipment	65,433			60,771
Accumulated depreciation	(35,624		)	(33,758		)
Net book value	$	29,809		$	27,013

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 $2.6 million, $2.2 million and $2.0 million, in 2013, 2012 and 2011, 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 $950,000, $887,000, $921,000 in 2013, 2012 and 2011, respectively.

Peoples Insurance leases certain properties from certain of its directors.  Payments related to these leases totaled $151,000, $146,000 and $141,000 in 2013, 2012 and 2011, 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, 2013:

(Dollars in thousands)	Payments
2014	$	753
2015	549
2016	481
2017	233
2018	156
Thereafter	18
Total future operating lease payments	$	2,190