Office Properties and Equipment, net

12 Months Ended

Dec. 31, 2013

Office Properties and Equipment, net

Office Properties and Equipment, net

Note 8 – Office Properties and Equipment, net

Year-end office properties and equipment were as follows:

	2013			2012
	(In thousands)
Land	$	572		$	572
Office buildings and improvements		3,126			3,949
Furniture, fixtures and equipment		2,140			2,091
		5,838			6,612
Less accumulated depreciation		(3,113	)		(3,995	)
Office properties and equipment, net	$	2,725		$	2,617

Depreciation expense was $214 thousand and $306 thousand for 2013 and 2012. During 2012, the main office building, which had a carrying amount of $1.7 million, was sold at a $2.5 million gain.

At December 31, 2013, the Company was obligated through 2021 under various non-cancelable operating leases on buildings and land used for office space and banking purposes. These operating leases contain escalation clauses which provide for increased rental expense, based primarily on increases in real estate taxes and cost-of-living-indices. The Company also leases certain office equipment. Rent expense under the operating leases was $458 thousand for 2013 and $373 thousand for 2012.

Rent commitments, before considering renewal options that generally are present, are as follows:

	Premises		Equipment		Total
	(In thousands)
Year ending December 31:
2014	$	335	$	39	$	374
2015		379		39		418
2016		397		35		432
2017		409		34		443
2018		459		17		476
Thereafter		1,122		-		1,122
Total	$	3,101	$	164	$	3,265