PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

7. PREMISES AND EQUIPMENT

Premises and equipment consist of the following:

	Years Ended
	December 31,
	2012			2011

Buildings	$	7,344,854		$	7,034,554
Land	1,038,294			1,038,294
Furniture and fixtures	3,466,625			3,427,304
Leasehold improvements	418,418			410,559
Automobiles	173,291			173,291
	12,441,482			12,084,002

Less accumulated depreciation and amortization	(7,688,693		)	(7,276,759		)
	$	4,752,789		$	4,807,243

Depreciation expense totaled $444,237 and $446,770 for the years ending December 31, 2012, and 2011, respectively. Loss on disposal of assets totaled $9,198 and $2,005 for the years ending December 31, 2012 and 2011, respectively.

The Company has entered into long-term operating leases for certain premises. Some of these leases require payment of real estate taxes and other related expenses, and some contain escalation clauses that provide for increased rental payments under certain circumstances. Certain leases also contain renewal options. Rental expense under leases for the years ended December 31, 2012 and December 31, 2011 was $296,374 and $287,862, respectively.

At December 31, 2012, the minimum rental commitment for the non-cancelable leases is as follows:

Year ending December 31,	Total

2013	$	304,197
2014	297,396
2015	210,396
2016	187,415
2017	117,000
and thereafter	22,500
	$	1,138,904

- 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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