Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions

Note 14. Related Party Transactions

In the ordinary course of business, the Bank grants loans to principal officers and directors and their affiliates. The Bank is prohibited from making loans or extensions of credit to executive officers and directors at different rates or terms than those offered to the general public. Notwithstanding this rule, federal regulations permit the Bank to make loans to executive officers at reduced interest rates if the loan is made under a benefit program generally available to all other employees and does not give preference to any executive officer over any other employee. All Bank employees are provided a reduction in their interest rate of approximately 1.00%. Other than a reduced interest rate, the loans are made on substantially the same terms as those prevailing at the time for comparable transactions with other persons. Directors do not participate in this benefit program. Loans to directors are substantially on the same rates and terms offered to the general public. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features.

Activity for the years ended December 31, 2011 and 2010, consisted of the following:

		September 30,			September 30,
	2011			2010
Beginning balance	$	1,603,215		$	1,179,130
New loans		388,402			1,016,453
Repayments		(1,299,486	)		(592,368	)
Ending balance	$	692,131		$	1,603,215

The Bank held related party deposits of $4,233,122 and $5,394,935 at December 31, 2011 and 2010, respectively.