Premises And Equipment

12 Months Ended

Dec. 31, 2011

NOTE 9. PREMISES AND EQUIPMENT

The following table is a summary of premises and equipment at December 31:


	2011			2010
(in thousands)

Land	$	6,316		$	6,384
Premises		41,608			41,470
Furniture and equipment		22,941			22,552
Leasehold improvements		4,899			4,781
		75,764			75,187
Accumulated depreciation		(38,009	)		(35,233	)
Total	$	37,755		$	39,954

Depreciation expense related to premises and equipment was $4.3 million for each of the years 2011, 2010 and 2009.

Certain banking facilities are leased under lease arrangements expiring at various dates until the year 2054. Those which contain escalation clauses, where the rent increases over the term of the lease, are accounted for on a straight-line basis. All leases are accounted for as operating leases, except for one capital lease. Rental expense for premises amounted to $1.9 million, $1.7 million and $1.9 million in 2011, 2010 and 2009, respectively. Included in the rental expense for premises are leases entered into with two directors, which totaled $0.2 million for each of the years ended 2011, 2010 and 2009.

Minimum annual rental and renewal option payments for each of the following five years and thereafter are approximately:


	Operating		Capital		Total
(in thousands)

2012	$	1,548	$	76	$	1,624
2013		1,564		76		1,640
2014		1,581		76		1,657
2015		1,583		76		1,659
2016		1,535		76		1,611
Thereafter		32,534		916		33,450
Total	$	40,345	$	1,296	$	41,641

- 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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