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Premises and Equipment

12 Months Ended

Dec. 31, 2012

Premises and Equipment [Abstract]

Premises and Equipment

6. Premises and Equipment

The following summarizes premises and equipment at December 31, 2012 and 2011:


		2012				2011
Land		$	4,126			$	4,122
Premises and leasehold improvements			25,670				25,263
Furniture and equipment			17,522				16,257
Construction in progress			408				104

			47,726				45,746
Less: accumulated depreciation			23,654				21,742

Premises and equipment, net		$	24,072			$	24,004

Depreciation on premises and equipment amounted to $1,948 in 2012, $1,823 in 2011, and $1,726 in 2010.

The Corporation is committed under fourteen noncancelable operating leases for facilities with initial or remaining terms in excess of one year. The minimum annual rental commitments under these leases at December 31, 2012 are as follows:


2013		$	402
2014			369
2015			348
2016			339
2017			248
Thereafter			1,209

		$	2,915

Rental expense, net of rental income, charged to occupancy expense for 2012, 2011, and 2010 was $351, $349, and $368, respectively.

In December 2009, the Corporation entered into a sale-leaseback transaction for real estate used in the operations of one of its branch office locations. The lease term is seventeen years, with two automatic renewal terms of five years each. The Corporation sold the property for $1,200 but financed the entire sales amount. Because the buyer/lessor did not make an initial investment on the purchase of the real estate that is adequate to transfer the risks and rewards of ownership, the Corporation deferred the entire gain of $489 associated with this transaction, which is included in accrued interest payable and other liabilities in the accompanying consolidated balance sheet. The gain is being recognized over the term of the loan under the installment method, and the gain recognized was included in other income in the accompanying consolidated statements of income and comprehensive income and totaled $19, $16, and $14 in 2012, 2011, and 2010, respectively.

The minimum annual rental commitments under this lease at December 31, 2012 are as follows:


2013		$	112
2014			112
2015			112
2016			112
2017			112
Thereafter			1,005

		$	1,565

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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