Related Party Transactions

12 Months Ended

Dec. 31, 2011

Note 18—Related Party Transactions

Certain officers, directors and principal stockholders of the Company and its subsidiaries, their immediate families or their affiliated companies (“related parties”) have loans with one or more of the subsidiaries. These loans are made in the ordinary course of business on substantially the same terms, including interest and collateral, as those prevailing for comparable transactions with others. Loans to related parties totaled approximately $20,787,000 and $21,271,000 at December 31, 2011 and 2010, respectively. Activity during 2011 and 2010 was as follows:

	2011			2010
Beginning balance	$	21,271		$	23,221
New loans		4,935			4,067
Loan repayments		(4,986	)		(6,017	)
Ending balance	$	21,220		$	21,271

Deposits from related parties held by First Mid Bank at December 31, 2011 and 2010 totaled $35,095,000 and $38,569,000, respectively.

See Note 1-“Preferred Stock” regarding the Series C Preferred Stock, the Remaining Investors and the Notes.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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+ Details