Bank Premises and Equipment

12 Months Ended

Dec. 31, 2014

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)	2014			2013
Land	$	7,612		$	6,802
Building and premises	48,402			38,281
Furniture, fixtures and equipment	22,323			20,350
Total bank premises and equipment	78,337			65,433
Accumulated depreciation	(38,002		)	(35,624		)
Net book value	$	40,335		$	29,809

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 $3.0 million, $2.6 million and $2.2 million, in 2014, 2013 and 2012, 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 $951,000, $950,000, $887,000 in 2014, 2013 and 2012, respectively.

Peoples Insurance Agency, LLC ("Peoples Insurance") previously leased a property from certain of its managers, however, in 2014 this lease expired and was not renewed. Payments related to this lease totaled $64,000, $151,000 and $146,000 in 2014, 2013 and 2012, respectively. The terms of the lease were substantially the same as those offered for comparable transactions with non-related parties at the time the lease transaction was 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, 2014:



(Dollars in thousands)	Payments
2015	$	786
2016	683
2017	441
2018	354
2019	135
Thereafter	4
Total future operating lease payments	$	2,403

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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