Office Properties and Equipment, net

12 Months Ended

Dec. 31, 2012

Office Properties and Equipment, net

Note 8 – Office Properties and Equipment, net

Year-end office properties and equipment were as follows:

	2012			2011
	(In thousands)
Land	$	572		$	1,723
Office buildings and improvements		3,949			5,051
Furniture, fixtures and equipment		2,091			2,120
		6,612			8,894
Less accumulated depreciation		(3,995	)		(4,268	)
Office properties and equipment, net	$	2,617		$	4,626

Depreciation expense was $306 thousand and $501 thousand for 2012 and 2011. 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, 2012, 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 $373 thousand for 2012 and $252 thousand for 2011.

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

	Premises		Equipment		Total
Year ending December 31:	(In thousands)
2013	$	311	$	28	$	339
2014		178		0		178
2015		220		0		220
2016		230		0		230
2017		237		0		237
Thereafter		893		0		893
Total	$	2,069	$	28	$	2,097