Long-Lived Assets Held for Sale

In 2010, the Company began marketing for sale a vacant bank-owned branch facility with a net book value of $235 thousand which is listed for sale and included in Other assets in the Consolidated Balance Sheets. This facility was under contract for sale during 2011, however, the sale did not close as scheduled and, accordingly, the property has been relisted.

In June 2011, the Company also began marketing for sale a vacant parcel of land which at December 31, 2011 was included in Other assets in the Consolidated Balance Sheets at a net book value of $562 thousand.

In December 2011, the Company announced its plans to reduce the Bank's branch network by four branches through sale or consolidation into existing branches, subject to regulatory approval. In connection with this announcement, on January 27, 2012, the Company entered into an agreement with an unrelated financial institution to sell two of the four branches. The sale is expected to close in the second quarter 2012. Land and buildings for two of the impacted branches totaling $408 thousand were reclassified as long-lived assets held for sale and included in Other assets at December 31, 2011. In addition, leasehold improvements associated with one of the leased facilities is being depreciated over the revised useful life of these assets, which was shortened from the lease term to the estimated cease-use date of March 30, 2012. Leasehold improvements of $223 thousand associated with the other leased facility are included with the branches being sold and have been reclassified to long-lived assets held for sale and included in Other assets at December 31, 2011. Furniture and equipment of $175 thousand associated with the two branches being sold were transferred to long-lived assets held for sale and are included in Other assets at December 31, 2011. These assets are no longer being depreciated and will be recorded at the lower of cost or fair value less estimated costs to sell until the closing date of the sale.