REAL ESTATE ACQUIRED IN SETTLEMENT OF LOANS

12 Months Ended

Sep. 30, 2011

REAL ESTATE ACQUIRED IN SETTLEMENT OF LOANS

REAL ESTATE ACQUIRED IN SETTLEMENT OF LOANS

6. REAL ESTATE ACQUIRED IN SETTLEMENT OF LOANS

Real estate acquired in settlement of loans at September 30, 2011 and 2010 is summarized as follows:

	2011			2010
Residential real estate	$	3,231,813		$	3,857,898
Commercial real estate	18,001,801			12,693,514
	21,233,614			16,551,412
Less allowance for losses	(2,515,800		)	(1,651,100		)
Total	$	18,717,814		$	14,900,312

Activity in the allowance for losses on real estate acquired in settlement of loans for the years ended

September 30, 2011, 2010 and 2009 is summarized as follows:

	2011			2010			2009
Balance, beginning of year	$	1,651,100		$	274,076		$	417,773
Provision charged to non-interest expense	2,118,500			2,181,900			758,602
Charge-offs	(1,253,800		)	(804,876		)	(902,299		)
Balance, end of year	$	2,515,800		$	1,651,100		$	274,076