Premises, Equipment and Leases

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense for 2012, 2011 and 2010 was $5.8 million, $6.5 million and $6.1 million, respectively, and is computed on the straight-line method over the estimated useful lives of the related assets as listed in the table below. The estimated life for leasehold improvements is based on the shorter of the useful life or the lease term.



	Years
Buildings and leasehold improvements	1 - 40
Furniture, fixtures and equipment	1 - 10
Computer equipment and software	3 - 8

A summary of premises and equipment is as follows:



	December 31,
(in thousands)	2012		2011
Land	$	16,736	$	15,386
Buildings	67,047		66,913
Construction in process	1,199		1,535
Leasehold improvements	2,677		2,583
Furniture, fixtures and equipment	32,938		32,073
	120,597		118,490
Less accumulated depreciation and amortization	41,809		36,376
Total	$	78,788	$	82,114

Land, buildings and equipment are leased under noncancelable operating lease agreements that expire at various dates through 2032. Total rental expense for operating leases in 2012, 2011 and 2010 was $2.9 million, $3.1 million and $3.0 million, respectively. At December 31, 2012 future minimum lease payments for noncancelable operating leases are payable as follows:



(in thousands)
2013	$	2,504
2014	2,341
2015	2,262
2016	2,126
2017	1,958
Thereafter	17,000
Total minimum lease payments	$	28,191