Related Party Transactions

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Related Party Transactions

NOTE K   RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Bank makes loans to its directors, officers and principal holders of equity securities. These loans are made on substantially the same terms including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons. An analysis of loans made to directors, officers and principal holders of equity securities, including companies in which they have a significant ownership interest, is as follows:

	2011			2010
Balance - January 1	$	1,077,302		$	1,186,284
New Loans Made		137,465			508,722
Repayments		(33,087	)		(617,704	)
Balance - December 31	$	1,181,680		$	1,077,302

During the years ended December 31, 2011, 2010, and 2009, legal fees paid to a director totaled $-0-, $8,795 and $12,352, respectively.

At December 31, 2011 and 2010, amounts due to Directors of the Company, including accrued interest, totaled $167,076 and $152,655, respectively. These amounts, which are included in Notes Payable and Accrued Interest Payable in the accompanying consolidated balance sheets, are payable on demand and bear interest at 10% per annum. Of the debentures payable at December 31, 2011 and 2010, $105,000 were to Directors of the Company (see Note R).