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Premises and Equipment
 12 Months Ended
Dec. 31, 2012
Property, Plant and Equipment [Abstract]  
Premises and Equipment

Note 5. Premises and Equipment

 

A summary of premises and equipment is as follows:

 

    Useful                    
    lives     2012     2011     2010  
                         
Land           $ 684,977     $ 684,977     $ 684,977  
Buildings     5-50 years       6,083,675       5,962,830       5,937,856  
Equipment and fixtures     5-30 years       5,126,477       5,182,979       5,200,693  
Construction in progress             4,150       19,232       39,704  
              11,899,279       11,850,018       11,863,230  
Accumulated depreciation             (8,026,277 )     (7,742,311 )     (7,739,614 )
                                 
            $ 3,873,002     $ 4,107,707     $ 4,123,616  

 

Depreciation expense totaled $409,032, $392,493, and $368,248 for the years ended December 31, 2012, 2011, and 2010, respectively. Amortization of software and intangible assets totaled $42,791, $40,154, and $58,668 for the years ended December 31, 2012, 2011, and 2010, respectively.

 

The Bank leases its Severna Park and Linthicum branches. Minimum lease obligations under the Severna Park branch are $30,000 per year through September 2012 and $33,000 through September 2013. There is a one year renewal option at the same rent amount. Minimum lease obligations under the Linthicum branch are $104,335 per year through December 2014, adjusted annually on a pre-determined basis, with one ten year extension option. The Bank is also required to pay all maintenance costs under all these leasing arrangements. Rent expense totaled $141,170, $137,204, and $134,081 for the years ended December 31, 2012, 2011, and 2010, respectively.