11.	MORTGAGE SERVICING RIGHTS

Activity in the balance of mortgage servicing rights, measured using the amortization method, for the nine month period ending September 30, 2011 and the year ended December 31, 2010 was as follows:

	September 30, 2011			December 31, 2010
Balance, beginning of year	$	797,327		$	850,313
Servicing rights capitalized		77,879			257,316
Amortization of servicing rights		(140,898	)		(302,755	)
Change in valuation allowance		(13,382	)		(7,547	)
Balance, end of period	$	720,926		$	797,327

Activity in the valuation allowance for mortgage servicing rights for the nine month period ending September 30, 2011 and the year ended December 31, 2010 was as follows:

	September 30, 2011			December 31, 2010
Balance, beginning of year	$	163,989		$	156,442
Additions		48,386			165,651
Reductions		(35,004	)		(158,104	)
Balance, end of period	$	177,371		$	163,989