PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

NOTE 5. PREMISES AND EQUIPMENT

Premises and equipment are summarized as follows:


	December 31,
	2012			2011
	(Dollars in Thousands)

Land	$	25,489		$	24,885
Buildings		55,115			53,315
Furniture and equipment		31,250			32,072
Construction in progress		816			235

		112,670			110,507
Accumulated depreciation		(36,687	)		(37,383	)

	$	75,983		$	73,124

Estimated costs to complete construction projects in progress were less than $1 million at December 31, 2012 and 2011. Depreciation expense was approximately $5.3 million, $4.5 million and $3.3 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Leases

The Company has a non-cancellable operating lease on its operations center with a former Chairman of the Board. The lease has an initial term of three years with one two-year renewal option.

The Company has various operating leases with unrelated parties on 12 banking offices and seven mortgage offices. Generally, these leases are on smaller locations with initial lease terms under ten years with up to two renewal options.

Rental expense amounted to approximately $1,708,000, $1,697,000 and $880,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Future minimum lease commitments under the Company’s operating leases, excluding any renewal options, are summarized as follows:


2013	$	1,102,835
2014		967,755
2015		705,056
2016		421,167
2017		311,799
Thereafter		107,198

	$	3,615,810

- 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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