Premises and Equipment

12 Months Ended

Dec. 31, 2012

7. Premises and Equipment

The detail of premises and equipment as of December 31^st for the past two years is as follows:


(In thousands)	December 31, 2012		December 31, 2011
Land and buildings	$	12,347	$	11,458
Furniture, fixtures and equipment		6,719		6,793
Leasehold improvements		2,319		2,150
Gross premises and equipment		21,385		20,401
Less: Accumulated depreciation		(9,323)		(9,051)
Net premises and equipment	$	12,062	$	11,350

Amounts charged to noninterest expense for depreciation of premises and equipment amounted to $1.1 million in both 2012 and 2011.

The Company currently accounts for all of its leases as operating leases. In addition, the Company has one lease with a related party. The Company leases its Clinton, New Jersey headquarters from a partnership in which two Board members, Messrs. D. Dallas and R. Dallas are partners. Under the lease for the facility, the partnership received aggregate rental payments of $427 thousand in 2012 and $416 thousand in 2011. Rental payments reflect market rents and the lease reflects terms that are comparable to those which could have been obtained in a lease with an unaffiliated third party. This lease has a five-year term, expiring at the end of 2013. The annual rent is increased each year by the increase in the Consumer Price Index (“CPI”) for the New York Metropolitan area (not to exceed 3 percent).

- 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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