LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2011

LEASE OBLIGATIONS

NOTE I – LEASE OBLIGATIONS

The Company is committed under several long-term operating leases which provide for minimum lease payments. Certain leases contain options for renewal. Total rental expense under these operating leases amounted to $93,000 and $126,000 as of December 31, 2011 and 2010, respectively.

The Company is also committed under one long-term capital lease agreement. The capital lease agreement had an outstanding balance of $1,540,000 and $- at December 31, 2011 and 2010, respectively (included in other liabilities). This lease has a remaining term of 10 years at December 31, 2011. Assets related to the capital lease are included in premises and equipment and the cost consists of $2.6 million less accumulated depreciation of approximately $86,500 and $- at December 31, 2011 and 2010, respectively.

Minimum future lease payments for the operating and capital leases at December 31, 2011 were as follows:

	Operating
	Leases		Capital Lease
	(In thousands)
2012	$	79	$	166
2013		80		166
2014		83		166
2015		83		166
2016		83		168
Thereafter		104		936
Total Minimum Lease Payments	$	512		1,768
Less: Amounts representing interest				(228	)
Present value of minimum lease payments			$	1,540