Office Properties and Equipment, net

12 Months Ended

Dec. 31, 2015

Office Properties and Equipment, net

Note 6—Office Properties and Equipment, net

Year-end office properties and equipment were as follows:

	2015			2014
	(In thousands)
Land	$	572		$	572
Office buildings and improvements		3,254			3,231
Furniture, fixtures and equipment		1,743			1,655

		5,569			5,458
Less accumulated depreciation		(2,999	)		(2,761	)

Office properties and equipment, net	$	2,570		$	2,697

Depreciation expense was $238 thousand and $241 thousand for the years 2015 and 2014, respectively.

At December 31, 2015, 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 $559 thousand for 2015 and $478 thousand for 2014.

Minimum noncancelable lease commitments, before considering renewal options that generally are present, are as follows:

	Premises		Equipment		Total
	(In thousands)
Year ending December 31:
2016	$	404	$	35	$	439
2017		416		34		450
2018		467		17		484
2019		481		—		481
2020		494		—		494
Thereafter		167		—		167

Total	$	2,429	$	86	$	2,515