Bank Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Bank Premises and Equipment

5.  BANK PREMISES AND EQUIPMENT

The major classes of bank premises and equipment and the total accumulated depreciation are as follows at December 31:

(In 000’s)
	Estimated useful life	2012	2011
Buildings and leasehold improvements	10-15 years	$874	$1,328
Furniture and equipment	3- 7 years	775	746
		$1,649	2,074
Less accumulated depreciation		(1,086)	(1,086)
		$563	$988

Depreciation expense on fixed assets totaled $220,281 and $246,272 for the years ended December 31, 2012 and 2011, respectively.

The Bank leases other facilities and other equipment under non-cancelable operating lease agreements. The amount of expense for operating leases for the years ended December 31, 2012 and 2011was $465,800 and $454,895, respectively. Future minimum lease payments under operating leases are as follows:

 (In 000’s)

Year ending December 31,	Operating leases
2013	$501
2014	493
2015	489
2016	171
2017	103
Thereafter	168
Total minimum lease payments	$1,925

In December 2012, the Bank sold its branch located at 38th and Lancaster Avenue in Philadelphia for $875,000 and realized a gain of approximately $527,000 on the sale.  Simultaneous with the sale, the Bank entered into a License Agreement that expires on April 28, 2013 to operate the branch until the office is closed and operations transferred to a branch located at corporate headquarters.  In addition, the Bank entered into a one year Operating Agreement for its ATM located at 38th and Lancaster Avenue.