Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

Note 8 – Related Party Transactions

The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with directors, principal officers, their immediate families, and affiliated companies in which they are principal stockholders (commonly referred to as related parties), on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. At December 31, 2011 and 2010, these persons and firms were indebted to the Company in the aggregate amount of $983,345 and $608,514, respectively.

Related party loan transactions for the years 2011 and 2010 are summarized below:

	For the Calendar Year
	2011		2010
Balance, beginning of year	$	608,514	$	465,818
Advances		605,547		350,231
Repayments		(230,716)		(207,535)
Balance, end of year	$	983,345	$	608,514

Deposits from directors and executive officers and their related interests totaled $5,319,719 and $4,981,368 at December 31, 2011 and 2010, respectively.

The Company has entered into a lease agreement, as described in Note 6, to lease a building from a company in which one of our directors also serves on the lessor’s board of directors. Note 6 details the amount of lease payments made in 2011 and in previous years, as well as payments obligated to be made in the future.

A public relations firm has been retained to provide marketing and public relations services for the Bank. A principal in the public relations firm is one of our directors. The Company incurred marketing and public relations fees of $121,380 and $107,158 for services rendered by the firm for the years ended December 31, 2011 and 2010, respectively. The Company anticipates paying additional sums to that firm during 2012.

The Company engaged a law firm for general legal counsel in 2011 and 2010. One of our directors is a shareholder with that firm. The Company incurred legal fees of $8,437 and $22,812 for services rendered by the firm for the years ended December 31, 2011 and 2010. The Company anticipates paying additional sums to that firm during 2012.