RELATED PARTY TRANSACTIONS

12 Months Ended

Jun. 30, 2012

RELATED PARTY TRANSACTIONS

NOTE 14—RELATED PARTY TRANSACTIONS

Loans to principal officers, directors, and their affiliates in 2012 were as follows.

Beginning balance	$	5,764,092
Effect of changes in the composition of the Board of Directors		—
New loans		9,061,720
Repayments		(698,065	)
Ending balance	$	14,127,747

The business relationships between the Company and its directors and directors’ affiliated companies that were considered by the Board of Directors were: (i) current director Mr. Calabrese’s position as the managing partner of Calabrese, Racek and Markos, Inc., a firm that performs appraisals on properties securing loans made by the Bank, and CRM Construction Services, Inc., a firm that provides asset positioning services for the Bank relative to Bank-owned real estate and other assets; and (ii) current director Mr. Fedeli’s position as President and Chief Executive Officer of the Fedeli Group, which acts as the Bank’s agent in connection with its purchase of certain insurance coverage.