Premises and Equipment

12 Months Ended

Dec. 31, 2014

Premises and Equipment [Abstract]

Premises and Equipment

Note 4 - Premises and Equipment

Premises and equipment are summarized by major classification as follows:

	December 31,						Estimated
	2014			2013			Useful Lives
	(dollars in thousands)
Land	$	1,537		$	1,537			-
Building		29,423			29,162		39 Years
Leasehold improvements		1,675			1,657		15-27.5 Years
Furniture, fixtures and equipment		2,985			3,221		3-10 Years
Construction in process		-			54
Total at cost		35,620			35,631
Accumulated depreciation		(10,461	)		(9,793	)
	$	25,159		$	25,838

Depreciation expense was $1,110,000 and $1,054,000 for the years ended December 31, 2014 and 2013, respectively.

Bancorp has four retail branch locations in Anne Arundel County, Maryland, of which it owns three and leases the fourth from a third party.  The lease term expires July 2015. There is an option remaining to renew the lease for one additional five year term.  In addition, the Bank leases office space in Annapolis, Maryland from a third party.  The lease expires January 2016, with the option to renew the lease for one additional five year term.

The minimum future annual rental payments on leases are as follows:

Years Ended December 31, (in thousands)
2015	92
2016	21
2017	18

Total rent expense was $121,000 and $99,000 for the years ended December 31, 2014 and 2013, respectively.

The minimum future annual rental income on leases is as follows:

Years Ended December 31, (in thousands)
2015	908
2016	926
2017	674
2018	455
2019	217

H.S. West, LLC, a subsidiary of the Bank, leases space to three unrelated companies and to a law firm of which the President of Bancorp and the Bank is a partner.  Total gross rental income included in occupancy expense on the Consolidated Statements of Operations was $956,000 and $648,000 for the years ended December 31, 2014 and 2013, respectively.