Premises and Equipment

12 Months Ended

Dec. 31, 2013

The composition of premises and equipment at December 31 is as follows:



(in thousands)	2013		2012
Land	$	7,304	$	8,725
Land Improvements		1,174		1,168
Premises		25,183		25,247
Furniture and Equipment		17,333		17,380
Capital Lease		534		535
		51,528		53,055
Less accumulated depreciation		(24,623)		(23,600)
Total	$	26,905	$	29,455

The Corporation recorded depreciation expense of $2.0 million in 2013 and 2012.

Pursuant to the terms of noncancelable operating lease agreements for banking and subsidiaries’ offices and for data processing and telecommunications equipment in effect at December 31, 2013, future minimum rent commitments under these leases for future years are as follows: (i) $3.4 million for 2014; (ii) $2.7 million for 2015; (iii) $2.7 million for 2016; (iv) $2.7 million for 2017; (v) $1.6 million for 2018; and (vi) $5.2 million thereafter. The leases contain options to extend for periods from one to five years, which are not included in the aforementioned amounts.

Total building and land rental expense amounted to $.5 million in 2013 and 2012.

- 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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