Premises and Equipment

12 Months Ended

Dec. 31, 2012

NOTE 6, Premises and Equipment

At December 31, premises and equipment consisted of:

	2012		2011
	(in thousands)
Land	$	7,804	$	7,804
Buildings		25,262		25,208
Construction in process		4,306		1,228
Leasehold improvements		866		858
Furniture, fixtures and equipment		17,266		16,947
		55,504		52,045
Less accumulated depreciation and amortization		22,976		21,781
	$	32,528	$	30,264

The majority of the increase in construction in process is due to continuing work on the Company's new corporate headquarters as discusses 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, 2012 and 2011 amounted to $1.9 and $1.8 million, respectively.

The Company has noncancellable leases on premises and equipment expiring at various dates, not including extensions, to the year 2017. 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, 2012 under noncancellable leases is $481 thousand which is due as follows (in thousands):

2013	$	193
2014		172
2015		101
2016		10
2017		5

Total	$	481

The aggregate rental expense of premises and equipment was $294 thousand and $286 thousand for 2012 and 2011.

- 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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