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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 9. Commitments and Contingencies

Operating leases

The Company has non-cancelable operating leases for its eight branch banking offices and for administrative and operational activities, which expire on various dates through 2017. Most of the leases contain rent escalation provisions, as well as renewal options for one or more periods. Under these lease agreements, the Company is required to pay certain operating costs such as insurance and property taxes. The Company also leases certain equipment under cancelable and non-cancelable arrangements.

Included in the table below, $39,646 of operating lease commitments have already been accounted for and included in restructuring charges in the consolidated financial statements for one branch that was closed.

 

Future minimum rental commitments under the terms of these leases by year and in the aggregate, are as follows:

 

Years Ending

December 31,

    Amount  

2014

    $ 1,638,568   

2015

      1,271,057   

2016

      720,034   

2017

      182,978   

2018

      —     

Thereafter

      —     
  

 

 

  
   $ 3,812,637   
  

 

 

  

Total rental expense, which is charged to operations on a straight line basis, for cancelable and non-cancelable operating leases was $2,142,995, $2,531,929 and $2,838,066 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company subleased excess space at two locations. Income from subleases included in non-interest expense was $70,835, $54,846 and $33,326 for the years ended December 31, 2013, 2012 and 2011, respectively.

Employment Agreements

The Company has two change of control agreements that entitle executive officers to receive up to two and one-half times the greater of the officer’s base salary at the time or total compensation for the most recently completed fiscal year if a change of control occurs while such officers are full time employees of the Company or within six months following termination of employment other than for cause or by reason of death or disability.

Legal Matters

Neither the Company nor the Bank has any pending legal proceedings, other than ordinary routine litigation, incidental to its business, to which the Company or the Bank is a party or any of its property is subject. Management and its legal counsel are of the opinion that the ultimate disposition of these routine matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.