Premises and Equipment

12 Months Ended

Dec. 31, 2013

NOTE 6, Premises and Equipment

At December 31, premises and equipment consisted of:

	2013		2012
	(in thousands)
Land	$	7,261	$	7,804
Buildings		24,101		25,262
Construction in process		13,316		4,306
Leasehold improvements		906		866
Furniture, fixtures and equipment		17,443		17,266
		63,027		55,504
Less accumulated depreciation and amortization		22,481		22,976
	$	40,546	$	32,528

The majority of the increase in construction in process is due to continuing work on the Company's new corporate headquarters as discussed in the subsequent events section of Note 1 to the Consolidated Financial Statements of this annual report on Form 10-K.

Depreciation expense for the years ended December 31, 2013 and 2012 amounted to $2.0 and $1.9 million, respectively.

The Company has noncancellable leases on premises and equipment expiring at various dates, not including extensions, to the year 2018. Certain leases provide for increased annual payments based on increases in real estate taxes and the Consumer Price Index.

The total approximate minimum rental commitment at December 31, 2013 under noncancellable leases is $672 thousand which is due as follows (in thousands):

2014	$	268
2015		191
2016		98
2017		93
2018		22
Total	$	672

The aggregate rental expense of premises and equipment was $277 thousand and $294 thousand for 2013 and 2012, respectively.

- 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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