Office Properties and Equipment, net

12 Months Ended

Dec. 31, 2016

Office Properties and Equipment, net

Note 5 – Office Properties and Equipment, net

Year-end office properties and equipment were as follows:

	2016			2015
	(In thousands)
Land	$	572		$	572
Office buildings and improvements		3,114			3,254
Furniture, fixtures and equipment		1,805			1,743

		5,491			5,569
Less accumulated depreciation		(3,012	)		(2,999	)

Office properties and equipment, net	$	2,479		$	2,570

Depreciation expense was $251 thousand and $238 thousand for the years 2016 and 2015, respectively.

At December 31, 2016, 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 $566 thousand for 2016 and $559 thousand for 2015.

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

	Premises		Equipment		Total
	(In thousands)
Year ending December 31:
2017	$	424	$	34	$	458
2018		467		17		484
2019		482		-		482
2020		494		-		494
2021		167		-		167
Thereafter		-		-		-

Total	$	2,034	$	51	$	2,085