Premises and Equipment

12 Months Ended

Dec. 31, 2011

8.	Premises and Equipment

The composition of premises and equipment at December 31 is as follows:

(In thousands)	2011			2010
Land	$	9,297		$	9,297
Land Improvements		1,112			1,112
Premises		25,299			25,254
Furniture and Equipment		16,671			16,612
Capital Lease		535			535
		52,914			52,810
Less accumulated depreciation		(22,088	)		(19,865	)
Total	$	30,826		$	32,945

The Corporation recorded depreciation expense of $2.3 million and $2.5 million in 2011 and 2010, respectively.

Pursuant to the terms of noncancelable operating lease agreements for banking and subsidiaries' offices and for data processing and telecommunications equipment in effect at December 31, 2011, future minimum rent commitments under these leases for future years are as follows: (i) $3.5 million for 2012; (ii) $3.4 million for 2013; (iii) $3.3 million for 2014; (iv) $2.5 million for 2015; (v) $2.4 million for 2016; and (vi) $9.2 million thereafter. The leases contain options to extend for periods from one to five years, which are not included in the aforementioned amounts.

Total rent expense for offices amounted to $.6 million in 2011 and $1.0 million in 2010.

- 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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