Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE 13 – Commitments and Contingencies

The Company has entered into a three year employment agreement with its chief executive officer and a two year employment agreement with its president and with two executive vice presidents. These agreements include a) an incentive program, b) a stock option plan, c) a one-year non-compete agreement upon termination and a severance payment equal to one year of compensation. The total estimated aggregate commitment is approximately $1.0 million.

The Company has entered into an agreement with a data processor which expires in 2014 to provide certain item processing, electronic banking, and general ledger processing services. Components of this contract vary based on transaction and account volume and include a base monthly charge of approximately $89,000.

At December 31, 2012, the Company occupied land and banking office space under leases expiring on various dates through 2028. The estimated future minimum lease payments under these noncancelable operating leases are summarized as follows:

(dollars in thousands)	For the years ended December 31,
2013	$	1,825
2014		1,841
2015		796
2016		795
2017		120
Thereafter		1,143
	$	6,520

Lease expense for the years ended December 31, 2012, 2011, and 2010, totaled $728,000, $684,000, and $669,000, respectively.

The Company may be subject to litigation and claims in the normal course of business. As of December 31, 2012, management believes there is no material litigation pending.