BUSINESS ACQUISITION

3 Months Ended

Mar. 31, 2012

Business Combinations [Abstract]

BUSINESS ACQUISITION

NOTE 8: BUSINESS ACQUISITION

In the fourth quarter of 2011, the Company announced that it had entered into an agreement to merge the Bank with Dupont State Bank (“Dupont”), an Indiana commercial bank and wholly owned subsidiary of Citizens Union Bancorp of Shelbyville, Inc. (“Citizens”). At the effective time of the merger, the Company will pay Citizens $6,275,000 (the “Merger Consideration”) for its shares of Dupont. The transaction is anticipated to close by the end of the second quarter of 2012, provided all conditions are satisfied and all regulatory and shareholder approvals are obtained. Some of the conditions that would entitle the Company to terminate the agreement are:

1) if Dupont’s closing book value (net of transaction expenses or extraordinary accruals required by the agreement) is less than $7,332,000, unless there is a corresponding reduction in the Merger Consideration;

2) if Dupont’s real estate owned exceeds $2.0 million; or

3) if Dupont’s delinquent loans (referring to loans with principal or interest that are 30 days or more past due, nonaccruing loans and restructured and impaired loans) exceed 4% of total loans.

After the combination, the surviving entity will be called “River Valley Financial Bank” and will operate as an Indiana-chartered commercial bank.