content_image/161384.jpg content_image/161385.jpg content_image/161386.jpg
incurred on loans previously sold where a breach of the contractual representations and warranties occurred. Because the level of mortgage repurchase losses depends upon economic factors, investor demand strategies and other external conditions that may change over the life of the underlying loans, mortgage repurchase losses are difficult to estimate and require considerable judgment. The Company did not make any provisions against the reserve during 2012 compared to a $650,000 provision during 2011. Actual losses during 2012 and 2011, which were charged against the reserve, were $82,000 and $170,000, respectively. As of December 31, 2012, the Company did not have any outstanding mortgage repurchase requests. 

The Company had loans to directors and officers, and to affiliated parties, at December 31, 2012 and 2011, which carry terms similar to those for other loans. Management believes such outstanding loans do not represent more than a normal risk of collection. A summary of such loans is as follows: 

## (5) Premises and Equipment 

Premises and equipment consisted of the following: 

<img src='content_image/161384.jpg'>

<img src='content_image/161385.jpg'>

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 was $953,000 $881,000, and $972,000, respectively and was included in occupancy and equipment on the consolidated statements of earnings. 

## (6) Deposits 

The following table presents the maturities of certificates of deposit at December 31, 2012: 

<img src='content_image/161386.jpg'>

