Premises And Equipment

12 Months Ended

Dec. 31, 2012

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 2012, 2011, or 2010.

The major categories of premises and equipment and accumulated depreciation at December 31, 2012 and 2011 are summarized as follows:


Dollars in thousands		2012		2011
Land	$	6,308	$	6,308
Buildings and improvements		20,110		20,118
Furniture and equipment		12,648		12,510
		39,066		38,936
Less accumulated depreciation		17,937		16,852

Total premises and equipment, net	$	21,129	$	22,084

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 approximated $1.29 million, $1.39 million, and $1.57 million, 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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