Premises and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Note 5. Premises and Equipment

Premises and equipment, net of accumulated depreciation, consist of the following at:



(Dollars in thousands)	December 31, 2012			December 31, 2011
Land	$	25,027		25,022
Office buildings and construction in progress	153,340			145,999
Furniture, fixtures and equipment	63,467			62,002
Leasehold improvements	7,393			7,766
Accumulated depreciation	(90,238		)	(81,917	)
Net premises and equipment	$	158,989		158,872

Depreciation expense for the years ended December 31, 2012, 2011, and 2010 was $10,615,000, $10,443,000, and $10,808,000, respectively. Interest expense capitalized for various construction projects for the years ended December 31, 2012, 2011 and 2010 was $11,000, $35,000 and $65,000, respectively.

The Company leases certain land, premises and equipment from third parties under operating and capital leases. Total rent expense for the years ended December 31, 2012, 2011, and 2010 was $2,868,000, $3,239,000, and $3,566,000, respectively. Amortization of building capital lease assets is included in depreciation. The Company has entered into lease transactions with related parties. Rent expense with such related parties for the years ended December 31, 2012, 2011, and 2010 was $410,000, $937,000, and $902,000. The decrease in the related party rent expense from the prior year is a result of combining the eleven bank subsidiaries into Glacier Bank. For additional information relating to the combination of the bank subsidiaries, see Note 1.

The total future minimum rental commitments required under operating and capital leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2012 are as follows:



(Dollars in thousands)	Capital Leases		Operating Leases	Total
Years ending December 31,
2013	$	238	2,317	2,555
2014	828		2,227	3,055
2015	195		2,043	2,238
2016	197		1,813	2,010
2017	200		1,506	1,706
Thereafter	749		4,136	4,885
Total minimum lease payments	2,407		14,042	16,449
Less: Amount representing interest	619
Present value of minimum lease payments	1,788
Less: Current portion of obligations under capital leases	98
Long-term portion of obligations under capital leases	$	1,690

- 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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