Premises And Equipment

12 Months Ended

Dec. 31, 2011

6. Premises and Equipment

The following summarizes premises and equipment at December 31, 2011 and 2010:


	2011		2010
Land	$	4,122	$	4,122
Premises and leasehold improvements		23,993		23,309
Furniture and equipment		17,527		16,626
Construction in progress		104		140

		45,746		44,197
Less: accumulated depreciation		21,742		20,062

Premises and equipment, net	$	24,004	$	24,135

Depreciation on premises and equipment amounted to $1,823 in 2011, $1,726 in 2010, and $1,702 in 2009.

The Corporation is committed under twelve noncancelable operating leases for facilities with initial or remaining terms in excess of one year. The minimum annual rental commitments under these leases at December 31, 2011 are as follows:


2012	$	345
2013		249
2014		229
2015		208
2016		197
Thereafter		1,252

	$	2,480

Rental expense, net of rental income, charged to occupancy expense for 2011, 2010, and 2009 was $349, $368, and $338, respectively.

In December 2009, the Corporation entered into a sale-leaseback transaction for real estate used in the operations of one of its branch office locations. The lease term is seventeen years, with two automatic renewal terms of five years each. The Corporation sold the property for $1,200 but financed the entire sales amount. Because the buyer/lessor did not make an initial investment on the purchase of the real estate that is adequate to transfer the risks and rewards of ownership, the Corporation deferred the entire gain of $489 associated with this transaction, which is included in accrued interest payable and other liabilities in the accompanying consolidated balance sheet. The gain is being recognized over the term of the loan under the installment method, and the gain recognized was $16 in 2011 and $14 in 2010.

The minimum annual rental commitments under this lease at December 31, 2011 are as follows:


2012	$	112
2013		112
2014		112
2015		112
2016		112
Thereafter		1,117

	$	1,677

- 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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