Premises and Equipment

12 Months Ended

Dec. 31, 2013

Note 7 – Premises and Equipment

Major classifications of premises and equipment are summarized as follows:

(in thousands)	December 31,
	2013			2012

Land	$	5,794		$	5,794
Buildings		22,968			22,754
Leasehold improvements		1,238			1,238
Furniture and equipment		17,965			17,366
		47,965			47,152
Accumulated depreciation		(24,291	)		(22,609	)
Premises and equipment, net	$	23,674		$	24,543

Depreciation expense for the years ended December 31, 2013, 2012, and 2011 was $1,734,000, $1,761,000, and $1,385,000, respectively.

The Company has entered into operating leases for several of its branch and ATM facilities. The minimum annual rental payments under these leases at December 31, 2013 are as follows:

(in thousands)	Minimum Lease
Year	Payments
2014	$	589
2015		553
2016		455
2017		399
2018		275
2019 and after		3
	$	2,274

Rent expense, a component of occupancy and equipment expense, for the years ended December 31, 2013, 2012, and 2011 was $629,000, $649,000, and $452,000, 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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