Transaction with Executive Officers, Directors, and Prinicpal Stockholders

12 Months Ended

Dec. 31, 2011

Transactions with Executive Officers, Directors, and Principal Stockholders

Transactions with Executive Officers, Directors and Principal Stockholders

Note 11 - Transactions with Executive Officers, Directors, and Principal Stockholders

The Bank has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal stockholders, their immediate families and affiliated companies (commonly referred to as related parties), on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. Deposits of related parties totaled $13,627,000 and $16,343,000 at December 31, 2011 and 2010, respectively. Activity with respect to loans to related parties for the year ended December 31, 2011 is as follows:

			2011
			(In Thousands)

Balance, beginning	$	9,140
Loans originated		2,956
Collection of principal		(4,751	)

Balance, ending	$	7,345

The Company leases the Bank's main office from a real estate company controlled and majority owned by three of its directors (see Note 7).

- 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

HIGHLANDS BANCORP, INC. 10-K