Premises and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Note 5. Premises and Equipment

A summary of premises and equipment is as follows:

	Useful
	lives		2014			2013			2012

Land			$	684,977		$	684,977		$	684,977
Buildings		5-50 years		6,221,980			6,142,509			6,083,675
Equipment and fixtures		5-30 years		5,400,514			5,187,984			5,126,477
Construction in progress				53,197			61,155			4,150
				12,360,668			12,076,625			11,899,279
Accumulated depreciation				(8,689,373	)		(8,379,853	)		(8,026,277	)

			$	3,671,295		$	3,696,772		$	3,873,002

Depreciation expense totaled $399,083, $392,146, and $409,032 for the years ended December 31, 2014, 2013, and 2012, respectively. Amortization of software totaled $21,970, $26,236, and $42,791 for the years ended December 31, 2014, 2013, and 2012, 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 2015. Minimum lease obligations under the Linthicum branch are $120,952 per year through December 2024, adjusted annually on a pre-determined basis. The Bank is also required to pay all maintenance costs under all these leasing arrangements. Rent expense totaled $150,145, $137,232, and $141,170 for the years ended December 31, 2014, 2013, and 2012, 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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