Deferred Compensation

12 Months Ended

Dec. 31, 2011

Deferred Compensation [Abstract]

Deferred Compensation

Note 12. Deferred Compensation

The Bank has established deferred compensation plans for the benefit of its board of directors. Under the plans, any director electing to defer directors’ fees will be entitled to receive the accumulated benefits, including interest earned, over a period of five to fifteen years following retirement. The Bank recognizes the liability for these benefits over the service period. As of December 31, 2011 and December 31, 2010, the liability for these benefits was $689,506 and $736,789, respectively. The expenses incurred by the Bank for these plans totaled $10,001 and $19,413 for the years ended December 31, 2011 and 2010, respectively. The Bank, utilizing bank owned life insurance, has insured the lives of certain directors who participate in the deferred compensation plans to assist in the funding of the deferred compensation liability. The Bank is the owner and beneficiary of the insurance policies.