HVBC 2016 Annual Report

HV Bancorp, Inc. and Subsidiary Notes to the Consolidated Financial Statements Years Ended June 30, 2017 and 2016 73 4. Premises and Equipment Premises and equipment are summarized by major classification at June 30, 2017 and 2016 as follows: (Dollars in thousands) 2017 2016 Land $ 334 $ 334 Land improvements 477 477 Office buildings and improvements 712 711 Leasehold improvements 636 610 Furniture and equipment 2,987 2,633 Total Cost 5,146 4,765 Accumulated depreciation (3,311) (3,113) $ 1,835 $ 1,652 Depreciation expense for the year ended June 30, 2017 and 2016 was $198,000 and $190,000, respectively. During the year ended June 30, 2007, the Bank sold the building that housed its corporate offices and one of its branch offices. At the time of settlement, the Bank entered into an operating lease agreement for the branch office portion of the building. The Bank deferred the $486,000 gain on the sale. The deferred gain is being amortized into income by the straight-line method over the term of the operating lease (29 years and 11 months) as a reduction of rental expense. The amount amortized was $16,000 for both years ended June 30, 2017 and 2016. 5. Deposits Deposits at June 30, 2017 and 2016 consisted of the following: (Dollars in thousands) 2017 2016 NOW accounts - interest bearing $ 34,857 $ 29,003 NOW accounts - non-interest bearing 1,729 3,344 Money market deposit accounts 31,574 25,582 Passbook and statement accounts 33,920 32,934 Checking accounts 40,493 13,407 Subtotal - core deposits 142,573 104,270 Certificates of deposit 27,908 37,501 Total deposits $ 170,481 $ 141,771 At June 30, 2017, scheduled maturities of certificates of deposit for the periods are as follows: (Dollars in thousands) June 30, 2018 $ 11,494 June 30, 2019 7,666 June 30, 2020 4,939 June 30, 2021 2,135 June 30, 2022 433 June 30, 2023 and thereafter 1,241 $ 27,908 Certificates of deposit in denominations of $250,000 or more were $2.9 million and $1.9 million at June 30, 2017 and 2016. The Company held deposits of approximately $12.1 million and $2.5 million for related parties at June 30, 2017 and 2016, respectively.