Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

7. Premises and Equipment

The following summarizes premises and equipment at December 31, 2013 and 2012:


	2013		2012
Land	$	4,412	$	4,126
Premises and leasehold improvements		28,764		25,670
Furniture and equipment		20,248		17,522
Construction in process		3,924		408

		57,348		47,726
Less: accumulated depreciation		25,759		23,654

Premises and equipment, net	$	31,589	$	24,072

Depreciation on premises and equipment amounted to $2,147 in 2013, $1,948 in 2012, and $1,823 in 2011.

In 2013, the Corporation entered into a contractual commitment to expand its main office facility in Clearfield, Pennsylvania at a cost of $4,128. Construction has commenced with $3,112 in construction-related expenditures incurred as of December 31, 2013. The project is expected to be completed early in the second quarter of 2014.

The Corporation is committed under twenty noncancelable operating leases for facilities and four noncancelable operating leases for vehicles with initial or remaining terms in excess of one year. The minimum annual rental commitments under these leases at December 31, 2013 are as follows:


2014	$	630
2015		617
2016		592
2017		426
2018		207
Thereafter		1,169

	$	3,641

Rental expense, net of rental income, charged to occupancy expense for 2013, 2012, and 2011 was $490, $351, and $349, 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 included in other income in the accompanying consolidated statements of income and comprehensive income and totaled $17, $19, and $16 in 2013, 2012, and 2011, respectively.

The minimum annual rental commitments under this lease at December 31, 2013 are as follows:


2014	$	112
2015		112
2016		112
2017		112
2018		112
Thereafter		893

	$	1,453

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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