Premises And Equipment

12 Months Ended

Dec. 31, 2011

Note 15—Premises and Equipment

Premises and equipment are described as follows:


	Estimated Useful Life	2011		2010
	(dollars in thousands)
Land	Indefinite	$	12,513	$	11,894
Buildings and improvements	10-50 years		81,072		79,577
Leasehold improvements	5-40 years		14,536		15,740
Furniture and equipment	3-10 years		79,722		83,681
Software	3-10 years		33,479		29,770

Subtotal			221,322		220,662
Less accumulated depreciation and amortization			154,567		153,681

Total premises and equipment		$	66,755	$	66,981

Depreciation related to premises and equipment included in noninterest expense for the years ended December 31, 2011, 2010 and 2009 amounted to $8.3 million, $8.6 million and $8.5 million, respectively.

First Commonwealth leases various premises and assorted equipment under non-cancelable agreements. Total future minimal rental commitments at December 31, 2011, were as follows:


	Premises		Equipment
	(dollars in thousands)
2012	$	3,627	$	207
2013		3,306		207
2014		3,148		18
2015		2,980		0
2016		2,798		0
Therafter		19,613		0

Total	$	35,472	$	432

Included in the lease commitments above is $486 thousand in lease payments to be paid under a sale-leaseback arrangement. The sale-leaseback transaction occurred in 2005 and resulted in a gain of $297 thousand on the sale of a branch that is being recognized over the 15 year lease term through 2020.

Increases in utilities and taxes that may be passed on to the lessee under the terms of various lease agreements are not reflected in the above table. However, certain lease agreements provide for increases in rental payments based upon historical increases in the consumer price index or the lessor's cost of operating the facility, and are included in the minimum lease commitments. Additionally, the table above includes rent expense that is recognized for rent holidays and during construction periods. Total lease expense amounted to $4.4 million in 2011, $4.4 million in 2010 and $4.3 million in 2009.

- 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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