Premises And Equipment

12 Months Ended

Dec. 31, 2011

NOTE 8 – PREMISES AND EQUIPMENT

Premises and equipment at December 31, 2011 and 2010 consists of the following:


(dollars in thousands)	2011			2010
Land	$	70,022		$	54,323
Buildings		211,521			154,420
Furniture, fixtures and equipment		89,283			72,846

Total premises and equipment		370,826			281,589
Accumulated depreciation		(85,219	)		(73,186	)

Total premises and equipment, net	$	285,607		$	208,403

Depreciation expense was $13,431,000, $10,359,000, and $8,287,000 for the years ended December 31, 2011, 2010, and 2009, respectively.

The Company actively engages in leasing office space available in buildings it owns. Leases have different terms ranging from monthly rental to five-year leases. At December 31, 2011, income from these leases averaged $128,000 per month. Total lease income for the years ended December 31, 2011, 2010, and 2009 was $1,542,000, $1,574,000, and $1,398,000, respectively. Income from leases is reported as a reduction in occupancy and equipment expense. The total allocated cost of the portion of the buildings held for lease at December 31, 2011 and 2010 was $8,942,000 and $8,375,000, respectively, with related accumulated depreciation of $2,168,000 and $2,042,000, respectively.

The Company leases certain branch and corporate offices, land and ATM facilities through non-cancelable operating leases with terms that range from one to thirty years, with renewal options thereafter. Certain of the leases have escalation clauses and renewal options ranging from monthly renewal to 30 years. The Company amortizes its capitalized leasehold improvements over the length of the initial lease agreement. Total rent expense for the years ended December 31, 2011, 2010, and 2009 totaled $9,803,000, $7,108,000, and $4,586,000, respectively.

Minimum future annual rent commitments under these agreements for the indicated periods follow:


(dollars in thousands)

Year ending December 31,	Amount
2012	$	9,655
2013		8,279
2014		7,054
2015		6,354
2016		5,680
2017 and thereafter		30,089

Total	$	67,111

- 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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