LOANS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2013

Summary of major classifications of loans receivable

	2013			2012
Real estate - construction	$	58,538,547		$	61,828,071
Real estate - mortgage	260,942,362			257,471,814
Commercial and industrial	17,549,625			17,514,053
Consumer and other	2,958,203			3,057,787
Total loans receivable, gross	339,988,737			339,871,725
Deferred origination fees	(147,978		)	(143,993		)
Total loans receivable, net of deferred origination fees	339,840,759			339,727,732
Less allowance for loan losses	6,692,278			6,726,550
Total loans receivable, net of allowance for loan loss	$	333,148,481		$	333,001,182

Summary of composition of gross loans by rate type

	2013		2012
Variable rate loans	$	143,824,003	$	145,603,038
Fixed rate loans	196,016,756		194,124,694
Total gross loans	$	339,840,759	$	339,727,732

Summary of analysis of loan portfolio by credit quality indicators

	Commercial				Commercial Real Estate				Commercial Real Estate Construction
	2013		2012		2013		2012		2013		2012
Grade:
Pass	$	15,449,928	$	15,141,551	$	116,224,187	$	110,986,821	$	15,494,384	$	17,702,278
Special Mention	136,643		338,313		7,355,250		13,738,175		375,193		378,368
Substandard	1,963,054		2,034,189		27,194,893		25,535,380		3,917,915		3,919,915
Doubtful	—		—		—		—		—		—
Loss	—		—		—		—		—		—
Total	$	17,549,625	$	17,514,053	$	150,774,330	$	150,260,376	$	19,787,492	$	22,000,561

	Residential Real Estate				Real Estate Residential Construction				Consumer
	2013		2012		2013		2012		2013		2012
Grade:
Pass	$	89,937,592	$	83,755,181	$	25,593,032	$	26,081,066	$	2,868,010	2,915,207
Special Mention	7,249,285		6,685,136		3,723,602		3,824,603		61		4,320
Substandard	12,981,155		16,771,121		9,434,421		9,921,841		90,132		138,260
Doubtful	—		—		—		—		—		—
Loss	—		—		—		—		—		—
Total	$	110,168,032	$	107,211,438	$	38,751,055	$	39,827,510	$	2,958,203	$	3,057,787

Summary of aging analysis of loan portfolio

	Commercial		Commercial Real Estate		Commercial Real Estate Construction		Residential Real Estate		Residential Real Estate Construction		Consumer		Total
March 31, 2013
Accruing Loans Paid Current	$	16,000,928	$	142,644,357	$	17,415,026	$	103,403,188	$	29,014,758	$	2,889,697	$	311,367,954
Accruing Loans Past Due:
30-59 Days	54,292		508,439		—		725,867		680,784		23,583		1,992,965
60-89 Days	82,261		—		—		—		—		44,923		127,184
Total Loans Past Due	136,553		508,439		—		725,867		680,784		68,506		2,120,149
Loans Receivable on Nonaccrual Status	$	1,412,144	$	7,621,534	$	2,372,466	$	6,038,977	$	9,055,513	$	—	$	26,500,634

Total Loans Receivable	$	17,549,625	$	150,774,330	$	19,787,492	$	110,168,032	$	38,751,055	$	2,958,203	$	339,988,737

December 31, 2012

Accruing Loans Paid Current	$	15,967,993	$	140,922,353	$	19,628,095	$	98,233,478	$	32,495,427	$	2,901,568	$	310,148,914
Accruing Loans Past Due:
30-59 Days	11,240		2,129,155		—		2,314,230		243,937		112,119		4,810,681
60-89 Days	116,272		1,299,221		—		305,095		73,197		—		1,793,785
Total Loans Past Due	127,512		3,428,376		—		2,619,325		317,134		112,119		6,604,466
Loans Receivable on Nonaccrual Status	$	1,418,548	$	5,909,647	$	2,372,466	$	6,358,635	$	7,014,949	$	44,100	$	23,118,345
Total Loans Receivable	$	17,514,053	$	150,260,376	$	22,000,561	$	107,211,438	$	39,827,510	$	3,057,787	$	339,871,725

Summary of information pertaining to impaired and nonaccrual loans

	2013		2012
Impaired loans without a valuation allowance	$	46,446,814	$	47,974,172
Impaired loans with a valuation allowance	9,510,909		8,614,639
Total impaired loans	$	55,957,723	$	56,588,811

Valuation allowance related to impaired loans	$	2,155,208	$	2,167,265
Average of impaired loans during the period	$	63,392,482	$	62,434,844
Total nonaccrual loans	$	26,500,634	$	23,118,345
Total Loans past due 90 days and still accruing	$	—	$	—
Total loans considered impaired which are classified as troubled debt restructurings	$	33,391,612	$	34,929,918

Summary of analysis of impaired loan portfolio detailing the related allowance

	Commercial		Commercial Real Estate		Commercial Real Estate Construction		Residential Real Estate		Residential Real Estate Construction		Consumer		Total
March 31, 2013
With no related allowance recorded:
Recorded Investment	$	1,412,143	$	26,844,221	$	2,372,466	$	8,354,680	$	7,463,304	$	—	$	46,446,814
Unpaid Principal Balance	1,627,142		27,929,444		2,816,136		10,623,423		10,168,108		—		53,164,253
Related Allowance	—		—		—		—		—		—		—
Average Recorded Investment	1,629,685		28,400,495		2,816,136		10,591,794		10,157,386		—		53,595,496
Interest Income Recognized	—		—		—		—		—		—		—
With an allowance recorded:
Recorded Investment	$	—	$	3,303,455	$	1,545,449	$	2,945,543	$	1,716,462	$	—	$	9,510,909
Unpaid Principal Balance	—		3,574,040		1,545,449		2,945,543		1,716,462		—		9,781,494
Related Allowance	—		656,611		253,318		501,463		743,816		—		2,155,208
Average Recorded Investment	—		3,582,928		1,546,182		2,947,171		1,720,705		—		9,796,986
Interest Income Recognized	—		—		—		—		—		—		—
Total:
Recorded Investment	$	1,412,143	$	30,147,676	$	3,917,915	$	11,300,223	$	9,179,766	$	—	$	55,957,723
Unpaid Principal Balance	1,627,142		31,503,484		4,361,585		13,568,966		11,884,570		—		62,945,747
Related Allowance	—		656,611		253,318		501,463		743,816		—		2,155,208
Average Recorded Investment	1,629,685		31,983,423		4,362,318		13,538,965		11,878,091		—		63,392,482
Interest Income Recognized	—		—		—		—		—		—		—

December 31, 2012
With no related allowance recorded:
Recorded Investment	$	1,418,548	$	24,984,224	$	3,919,915	$	10,194,785	$	7,412,600	$	44,100	$	47,974,172
Unpaid Principal Balance	1,633,548		26,069,447		4,141,750		11,686,837		8,990,567		229,401		52,751,550
Related Allowance	—		—		—		—		—		—		—
Average Recorded Investment	1,645,407		26,595,732		4,141,159		11,731,159		9,063,071		229,462		53,405,990
Interest Income Recognized	—		—		—		—		—		—		—
With an allowance recorded:
Recorded Investment	$	—	$	3,508,003	$	—	$	2,797,978	$	2,308,658	$	—	$	8,614,639
Unpaid Principal Balance	—		3,788,676		—		2,914,197		2,308,658		—		9,011,531
Related Allowance	—		715,630		—		540,107		911,528		—		2,167,265
Average Recorded Investment	—		3,810,663		—		2,907,000		2,311,191		—		9,028,854
Interest Income Recognized	—		—		—		—		—		—		—
Total:
Recorded Investment	$	1,418,548	$	28,492,227	$	3,919,915	$	12,992,763	$	9,721,258	$	44,100	$	56,588,811
Unpaid Principal Balance	1,633,548		29,858,123		4,141,750		14,601,034		11,299,225		229,401		61,763,081
Related Allowance	—		715,630		—		540,107		911,528		—		2,167,265
Average Recorded Investment	1,645,407		30,406,395		4,141,159		14,638,159		11,374,262		229,462		62,434,844
Interest Income Recognized	—		—		—		—		—		—		—

Summary of transactions in allowance for loan losses

	2013			2012
Balance, beginning of period	$	6,726,550		$	10,320,259
Provision charged to operations	185,000			3,028,068
Gross loan charge offs	(398,823		)	(6,883,023		)
Gross loan recoveries	179,551			261,246
Balance, end of period	$	6,692,278		$	6,726,550
Gross loans outstanding, end of period	$	339,840,759		$	339,727,732

Summary of information pertaining to allowance for loan losses

	Commercial			Commercial Real Estate			Commercial Real Estate Construction		Residential Real Estate			Residential Real Estate Construction			Consumer			Unallocated		Total
March 31, 2013
Allowance for loan losses:
Beginning Balance	$	383,496		$	1,336,140		$	55,829	$	2,365,718		$	2,366,052		$	219,315		$	—	$	6,726,550
Charge-offs	—			(6,936		)	—		(141,833		)	(225,954		)	(24,100		)	—		(398,823		)
Recoveries	110			—			—		9,030			166,661			3,750			—		179,551
Provision	(190,341		)	535,096			225,802		(313,525		)	(52,533		)	(19,499		)	—		185,000
Ending Balance	$	193,265		$	1,864,300		$	281,631	$	1,919,390		$	2,254,226		$	179,466		$	—	$	6,692,278
Individually evaluated for impairment	—			656,611			253,318		501,463			743,816			—			—		2,155,208
Collectively evaluated for impairment	193,265			1,207,689			28,313		1,417,927			1,510,410			179,466			—		4,537,070
Loans Receivable:
Ending Balance	$	17,549,625		$	150,774,330		$	19,787,492	$	110,168,032		$	38,751,055		$	2,958,203		$	—	$	339,988,737
Individually evaluated for impairment	1,412,143			30,147,676			3,917,915		11,300,223			9,179,766			—			—		55,957,723
Collectively evaluated for impairment	16,137,482			120,626,654			15,869,577		98,867,809			29,571,289			2,958,203			—		284,031,014

	Commercial			Commercial Real Estate			Commercial Real Estate Construction			Residential Real Estate			Residential Real Estate Construction			Consumer			Unallocated			Total
December 31, 2012
Allowance for loan losses:
Beginning Balance	$	642,148		$	2,540,003		$	1,157,720		$	3,299,600		$	2,328,918		$	49,482		$	302,388		$	10,320,259
Charge-offs	(198,894		)	(1,074,741		)	(288,490		)	(2,726,229		)	(2,282,282		)	(312,387		)	—			(6,883,023		)
Recoveries	15,534			53,118			—			151,725			28,554			12,315			—			261,246
Provision	(75,292		)	(182,240		)	(813,401		)	1,640,622			2,290,862			469,905			(302,388		)	3,028,068
Ending Balance	$	383,496		$	1,336,140		$	55,829		$	2,365,718		$	2,366,052		$	219,315		$	—		$	6,726,550
Individually evaluated for impairment	—			715,630			—			540,107			911,528			—			—			2,167,265
Collectively evaluated for impairment	383,496			620,510			55,829			1,825,611			1,454,524			219,315			—			4,559,285
Loans Receivable:
Ending Balance	$	17,514,053		$	150,260,376		$	22,000,561		$	107,211,438		$	39,827,510		$	3,057,787		$	—		$	339,871,725
Individually evaluated for impairment	1,418,548			28,492,227			3,919,915			12,992,763			9,721,258			44,100			—			56,588,811
Collectively evaluated for impairment	16,095,505			121,768,149			18,080,646			94,218,675			30,106,252			3,013,687			—			283,282,914