Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

The following is a summary of the non-accrual loans as of June 30, 2012 and December 31, 2011.

June 30, 2012
Loans Receivable on Non-Accrual
Commercial	$	9,098
Commercial Real Estate:
Commercial Real Estate - Construction		-
Commercial Real Estate - Other		3,194,405
Consumer:
Consumer Real Estate		67,981
Consumer - Other		-
Total	$	3,271,484

December 31, 2011
Loans Receivable on Non-Accrual
Commercial	$	4,018
Commercial Real Estate:
Commercial Real Estate - Construction		-
Commercial Real Estate - Other		851,672
Consumer:
Consumer Real Estate		67,981
Consumer - Other		-
Total	$	923,671

The following is a schedule of the Bank’s delinquent loans, excluding mortgage loans held for sale, as of June 30, 2012 and December 31, 2011.

June 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
Commercial	$	177,836		-		-		177,836		52,843,764		53,021,600		-
Commercial Real Estate:
Commercial Real Estate -Construction		-		-		-		-		3,685,093		3,685,093		-
Commercial Real Estate -Other		212,081		32,082		2,922,383		3,166,546		102,673,618		105,840,164		140,578
Consumer:
Consumer- Real Estate		29,999		-		-		29,999		43,397,931		43,427,930		-
Consumer-Other		-		10,026		12,023		22,049		4,753,359		4,775,408		12,023
Total	$	419,916		42,108		2,934,406		3,396,430		207,353,765		210,750,195		152,601

December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
Commercial	$	50,892		-		-		50,892		55,514,633		55,565,525		-
Commercial Real Estate:
Commercial Real Estate -Construction		-		-		-		-		3,564,327		3,564,327		-
Commercial Real Estate -Other		1,268,321		-		788,167		2,056,488		104,352,133		106,408,621		282,173
Consumer:
Consumer- Real Estate		-		-		-		-		43,185,861		43,185,861		-
Consumer-Other		4,401		30,319		605		35,325		4,949,453		4,984,778		-
Total	$	1,323,614		30,319		788,772		2,142,705		211,566,407		213,709,112		282,173

Impaired and Restructured Loans For the Six Months Ended June 30, 2012
With no related allowance recorded:	Unpaid Principal Balance		Recorded Investments		Related Allowance		Average Recorded Investment		Interest Income Recognized
Commercial	$	96,350	$	9,099	$	-	$	14,044	$	3,769
Commercial Real Estate		10,869,709		8,772,411		-		8,747,715		1,738,669
Consumer Real Estate		319,536		313,754		-		316,787		56,446
Consumer Other		-		-		-		-		-

Total	$	11,285,595	$	9,095,264	$	-	$	9,078,546	$	1,798,884

With an allowance recorded:
Commercial	$	1,360,535	$	1,275,462	$	1,275,462	$	1,294,481	$	140,833
Commercial Real Estate		311,000		265,857		167,782		277,250		90,249
Consumer Real Estate		822,750		819,323		345,494		819,423		317,948
Consumer Other		50,000		49,540		49,540		49,610		4,815

Total	$	2,544,285	$	2,410,182	$	1,838,278	$	2,440,764	$	553,845

Impaired and Restructured Loans For the Year Ended December 31, 2011
With no related allowance recorded:	Unpaid Principal Balance		Recorded Investments		Related Allowance		Average Recorded Investment		Interest Income Recognized
Commercial	$	83,350	$	4,018	$	-	$	8,625	$	315
Commercial Real Estate		4,289,820		4,321,755		-		4,299,045		99,046
Consumer Real Estate		319,536		315,926		-		317,776		12,596
Consumer Other		-		-		-		-		-

Total	$	4,692,706	$	4,641,699	$	-	$	4,625,446	$	111,957

With an allowance recorded:
Commercial	$	1,360,535	$	1,281,462	$	1,281,462	$	1,298,891	$	57,458
Commercial Real Estate		668,950		625,648		187,713		634,511		9,957
Consumer Real Estate		822,750		819,341		345,494		819,423		34,636
Consumer Other		50,000		49,742		49,742		49,742		-

Total	$	2,902,235	$	2,776,193	$	1,864,411	$	2,802,567	$	102,051

he following table illustrates credit risks by category and internally assigned grades at June 30, 2012 and December 31, 2011.

June 30, 2012
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer – Real Estate		Consumer – Other

Pass	$	45,531,537	$	3,213,176	$	89,428,001	$	38,103,655	$	4,085,876
Watch		3,372,468		-		2,917,880		3,165,784		325,039
OAEM		1,135,938		471,917		4,993,485		658,763		187,152
Sub-Standard		2,981,657		-		8,500,798		1,499,728		177,341
Doubtful		-		-		-		-		-
Loss		-		-		-		-		-

Total	$	53,021,600	$	3,685,093	$	105,840,164	$	43,427,930	$	4,775,408

December 31, 2011
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer – Real Estate		Consumer – Other

Pass	$	48,160,256	$	3,088,190	$	93,889,871	$	38,551,256	$	4,390,391
Watch		4,000,123		476,137		4,581,885		3,312,679		214,617
OAEM		2,071,137		-		1,905,745		212,545		311,905
Sub-Standard		1,334,009		-		6,031,120		1,109,381		67,865
Doubtful		-		-		-		-		-
Loss		-		-		-		-		-

Total	$	55,565,525	$	3,564,327	$	106,408,621	$	43,185,861	$	4,984,778

June 30, 2012
	Commercial			Commercial Real Estate			Consumer Real Estate			Consumer Other			Unallocated		Total
Allowance for Loan Losses
Beginning Balance	$	1,586,510		$	420,367		$	450,338		$	91,402		$	558,267	$	3,106,884
Charge-offs		(17,152	)		(43,734	)		(26,488	)		(230	)		-		(87,604	)
Recoveries		104,968			7,229			10,000			102			-		122,299
Provisions		(240,479	)		(107,326	)		138,993			(9,850	)		418,662		200,000
Ending Balance		1,433,847			276,536			572,843			81,424			976,929		3,341,579
Ending Balances:
Individually evaluated for impairment		1,284,560			9,038,269			1,133,077			49,540			-		11,505,446
Collectively evaluated for impairment	$	51,737,040		$	100,486,988		$	42,294,853		$	4,725,868		$	-	$	199,244,749

December 31, 2011
	Commercial			Commercial Real Estate			Consumer Real Estate		Consumer Other			Unallocated			Total
Allowance for Loan Losses
Beginning Balance	$	1,502,298		$	128,334		$	218,897	$	27,200		$	1,061,859		$	2,938,588
Charge-offs		(17,943	)		(303,403	)		-		(62,368	)		-			(383,714	)
Recoveries		42,662			28,838			-		510			-			72,010
Provisions		59,493			566,598			231,441		126,060			(503,592	)		480,000
Ending Balance		1,586,510			420,367			450,338		91,402			558,267			3,106,884
Ending Balances:
Individually evaluated for impairment		1,285,480			4,947,403			1,135,267		49,742			-			7,417,892
Collectively evaluated for impairment	$	54,280,045		$	105,025,545		$	42,050,594	$	4,935,036		$	-		$	206,291,220

Modification
As of June 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Commercial			$		$	-
Commercial Real Estate		3	$	2,400,797	$	2,400,797
Commercial Real Estate Construction		-	$		$	-
Consumer Real Estate –Prime		1	$	113,692	$	113,692
Consumer Real Estate-Subprime		-	$	-	$	-
Consumer Other		-	$	-	$	-
Troubled Debt Restructurings That Subsequently Defaulted
Commercial		-	$	-	$	-
Commercial Real Estate		-	$	-	$	-
Commercial Real Estate Construction		-	$	-	$	-
Consumer Real Estate -Prime		-	$	-	$	-
Consumer Real Estate-Subprime		-	$	-	$	-
Consumer Other		-	$	-	$	-

Modification
As of December 31, 2011
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Commercial			$		$	-
Commercial Real Estate		1	$	375,323	$	375,323
Commercial Real Estate Construction		-	$	-	$	-
Consumer Real Estate –Prime		1	$	115,830	$	115,830
Consumer Real Estate-Subprime		-	$	-	$	-
Consumer Other		-	$	-	$	-
Troubled Debt Restructurings That Subsequently Defaulted
Commercial		-	$	-	$	-
Commercial Real Estate		1	$	153,015	$	153,015
Commercial Real Estate Construction		-	$	-	$	-
Consumer Real Estate -Prime		-	$	-		-
Consumer Real Estate-Subprime		-	$	-	$	-
Consumer Other		-	$	-	$	-