Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

Details of premises and equipment, at cost, at December 31 were as follows:

	2013			2012
Land and land improvements	$	3,019		$	3,310
Buildings and leasehold improvements	29,772			31,195
Furniture, fixtures and equipment	19,792			19,572
Total cost	52,583			54,077
Accumulated depreciation and amortization	(26,856		)	(26,018		)
Net premises and equipment	$	25,727		$	28,059

Depreciation and amortization expense on premises and equipment was $2.7 million, $2.2 million and $2.3 million for 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, the Company has capitalized software costs of $3.2 million and $3.0 million, respectively, and related accumulated depreciation expense of $2.7 million and $2.4 million, respectively. Capitalized software costs are presented within other assets on the consolidated statement of condition. Depreciation and amortization expense on capitalized software costs for 2013, 2012, and 2011 were $296,000, $301,000, and $273,000, respectively.

Lease expense was approximately $1.3 million, $997,000 and $918,000 for 2013, 2012 and 2011, respectively. The Company has a capital lease for a branch facility with payments that extend until 2026 at an interest rate of 9.75% per year. The related asset, recorded in premises and equipment, has a cost basis of $855,000 and accumulated depreciation of $331,000. At December 31, 2013, under current operating and capital lease contracts, the Company had the following schedule of future minimum lease payments:

	Operating		Capital
2014	$	1,102	$	129
2015	908		129
2016	763		127
2017	682		126
2018	489		126
Thereafter	1,575		938
	$	5,519	$	1,575

During 2012, the Company recorded a gain of $479,000 on the sale of a branch facility and is presented within other income on the consolidated statements of income. There were no recorded gains or losses from the sale of premises or equipment in 2013.