PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

NOTE D - PREMISES AND EQUIPMENT

(DOLLARS IN THOUSANDS)

The major classes of the Corporation's premises and equipment and accumulated depreciation are as follows:

	December 31,
	2014		2013
	$		$
Land		3,687		3,687
Buildings and improvements		24,619		24,542
Furniture and equipment		11,926		11,322
Construction in process		144		74
Total		40,376		39,625
Less accumulated depreciation		17,929		16,613
Premises and equipment		22,447		23,012

Depreciation expense, which is included in operating expenses, amounted to $1,356,000 for 2014, $1,205,000 for 2013, and $1,117,000 for 2012. The construction in process category represents expenditures for ongoing projects. When construction is completed, these amounts will be reclassified into buildings and improvements, and/or furniture and equipment. Depreciation only begins when the project or asset is placed into service. As of December

31, 2014, the construction in process consists primarily of costs associated with improvements being made to new or existing facilities expected to be completed in 2015.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details