Premises and Equipment, net

12 Months Ended

Dec. 31, 2012

Premises and Equipment, net

The following table summarizes premises and equipment balances, net at the dates indicated (in thousands).


	December 31,
	2012			2011
Land	$	5,581		$	5,591
Buildings		19,541			19,497
Leasehold improvements		4,309			4,644
Furniture and equipment		12,640			12,147
Software		4,971			4,210
Bank automobiles		95			95
Capital lease asset		1,378			1,378

Premises and equipment, gross		48,515			47,562
Accumulated depreciation		(23,719	)		(21,758	)

Premises and equipment, net	$	24,796		$	25,804

At December 31, 2012, the Bank provided commercial and consumer banking products and services through 25 branches of which five were leased and 20 were owned. At December 31, 2012, the Bank also had six limited service offices located in retirement centers in the Upstate. Additionally, the Bank has one leased brokerage office in Greenville County, which is separate from any branch.

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. In connection with this announcement, in January 2012, the Company entered into an agreement with an unrelated financial institution to sell two of the four branches. The consolidations occurred on March 30, 2012, and the sales were closed on July 1, 2012. Land and buildings for one of the consolidated branches and one of the branches sold totaling $408 thousand were reclassified as long-lived assets held for sale at December 31, 2011. In addition, furniture and equipment of $175 thousand associated with the two branches sold were reclassified as long-lived assets held for sale at December 31, 2011, and the estimated remaining useful life of leasehold improvements of $223 thousand associated with one of the consolidated leased facilities was shortened from the lease term to the cease-use date of March 30, 2012.

For additional disclosure regarding the impact of the Bank’s branch network reduction, see Note 23, Reduction in Branch Network.

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 was $2.5 million, $2.5 million and $2.6 million, respectively.

- 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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