Fidelity Bancorp (FSBI)

Note 5 - Office Premises and Equipment

Office premises and equipment are summarized as follows:

Depreciation expense was $507,000 and $552,000 for the years ended September 30, 2008, and 2007, respectively.

The Bank has operating leases with respect to four branch offices and the Bank’s Loan Center, which expire on various dates through fiscal 2017. Lease expense amounted to $293,000 and $250,000 in fiscal years 2008 and 2007, respectively. Minimum annual lease commitments are approximately as follows (in thousands):

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Table of Contents

Note 5 - Office Premises and Equipment

Office premises and equipment are summarized as follows:

Office Premises and Equipment

Office premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the related assets. Office buildings are depreciated over their estimated useful life of 40 years; furniture, fixtures and equipment are depreciated over their estimated useful lives, which vary between three and ten years; and land improvements are depreciated over their estimated useful life of twenty years.