Premises And Equipment

12 Months Ended

Dec. 31, 2011

NOTE 8. PREMISES AND EQUIPMENT

Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily by the straight-line method for premises and equipment over the estimated useful lives of the assets. The estimated useful lives employed are on average 30 years for premises and 3 to 10 years for furniture and equipment. Repairs and maintenance expenditures are charged to operating

expenses as incurred. Major improvements and additions to premises and equipment, including construction period interest costs, are capitalized. No interest was capitalized during 2011, 2010, or 2009.

The major categories of premises and equipment and accumulated depreciation at December 31, 2011 and 2010 are summarized as follows:


Dollars in thousands		2011		2010
Land	$	6,308	$	6,308
Buildings and improvements		20,118		20,059
Furniture and equipment		12,510		12,245
		38,936		38,612
Less accumulated depreciation		16,852		15,520

Total premises and equipment, net	$	22,084	$	23,092

Depreciation expense for the years ended December 31, 2011, 2010 and 2009 approximated $1,393,000, $1,566,000, and $1,600,000, 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.

+ References+ Details