REAL ESTATE OWNED

12 Months Ended

Dec. 31, 2014

REAL ESTATE OWNED

REAL ESTATE OWNED

NOTE 5 - REAL ESTATE OWNED

Activity in real estate owned was as follows:

	Twelve Months Ended
	2014			2013
Beginning of year	$	3,378,958		$	4,168,356
Additions	3,275,321			542,273
Sales	(1,992,132		)	(1,475,565		)
Additions to valuation allowance, net	(144,100		)	(63,302		)
Recovery from sale in valuation allowance	85,540			207,196
End of period	$	4,603,587		$	3,378,958

Activity in the valuation allowance was as follows:

	2014			2013			2012
Beginning of year	$	1,524,308		$	1,668,202		$	1,331,420
Additions to valuation allowance, net	144,100			63,302			990,570
Recovery from sale	(85,540		)	(207,196		)	(653,788		)
End of year	$	1,582,868		$	1,524,308		$	1,668,202

Expenses related to foreclosed assets include:

	2014			2013			2012
Net loss (gain) on sales	$	(146,413	)	$	(43,213	)	$	179,873
Additions to valuation allowance, net	144,100			63,302			990,570
Operating expenses (receipts), net of rental income	226,450			203,503			745,194
Repossession expense, net	370,550			266,805			1,735,764
End of year	$	224,137		$	223,592		$	1,915,637