Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Note 5. Premises and Equipment

A summary of premises and equipment is as follows:


	Useful
	lives	2013			2012			2011

Land		$	684,977		$	684,977		$	684,977
Buildings	5-50 years		6,142,509			6,083,675			5,962,830
Equipment and fixtures	5-30 years		5,187,984			5,126,477			5,182,979
Construction in progress			61,155			4,150			19,232
			12,076,625			11,899,279			11,850,018
Accumulated depreciation			(8,379,853	)		(8,026,277	)		(7,742,311	)

		$	3,696,772		$	3,873,002		$	4,107,707

Depreciation expense totaled $392,146, $409,032, and $392,493 for the years ended December 31, 2013, 2012, and 2011, respectively. Amortization of software and intangible assets totaled $26,236, $42,791, and $40,154 for the years ended December 31, 2013, 2012, and 2011, 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 2014. 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 $137,232, $141,170, and $137,204 for the years ended December 31, 2013, 2012, and 2011, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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