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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

Note 9. Commitments and Contingencies

Operating leases

The Company has non-cancelable operating leases for its main office, ten other branch banking offices and additional space for administrative and operational activities, which expire on various dates through 2027. Most of the leases contain rent escalation provisions, as well as renewal options for one or more periods. Under these lease agreements, the Company is required to pay certain executory costs such as insurance and property taxes. The Company also leases parking space under a non-cancelable operating lease agreement and certain equipment under cancelable and non-cancelable arrangements.

Included in the table below, $574,782 of operating lease commitments have already been accounted for and included in restructuring charges and asset disposals in the consolidated financial statements for four branches that were closed.

 

Future minimum rental commitments under the terms of these leases by year and in the aggregate, are as follows:

 

         
Years Ending      

December 31,

   Amount  

2013

   $ 2,396,941  

2014

     2,228,457  

2015

     1,647,052  

2016

     1,069,645  

2017

     542,972  

Thereafter

     3,917,502  
   

 

 

  
    $ 11,802,569  
   

 

 

  

Total rental expense, which is charged to operations on a straight line basis, for cancelable and non-cancelable operating leases was $2,531,929 $2,838,066 and $3,239,518 for the years ended December 31, 2012, 2011 and 2010, respectively. The Company subleases excess space at two locations. Income from subleases included in non-interest expense was $54,846, $33,326 and $26,715 for the years ended December 31, 2012, 2011 and 2010, respectively.

Employment Agreements

The Company has three change of control agreements that entitle executive officers to receive up to two and one-half times the greater of the officer’s base salary at the time or total compensation for the most recently completed fiscal year if a change of control occurs while such officers are full time employees of the Company or within six months following termination of employment other than for cause or by reason of death or disability.

Legal Matters

Neither the Company nor the Bank has any pending legal proceedings, other than ordinary routine litigation, incidental to its business, to which the Company or the Bank is a party or any of its property is subject. Management and its legal counsel are of the opinion that the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.