MORTGAGE SERVICING RIGHTS

9 Months Ended

Sep. 30, 2013

Mortgage Servicing Rights [Abstract]

MORTGAGE SERVICING RIGHTS

10. MORTGAGE SERVICING RIGHTS

Activity in the balance of mortgage servicing rights, measured using the amortization method, for the nine month period ending September 30, 2013 and the year ended December 31, 2012 was as follows:

	September 30, 2013			December 31, 2012
Balance, beginning of year	$	664,436		$	697,733
Servicing rights capitalized		87,160			219,975
Amortization of servicing rights		(122,063	)		(297,784	)
Change in valuation allowance		18,528			44,512
Balance, end of period	$	648,061		$	664,436

Activity in the valuation allowance for mortgage servicing rights for the nine month period ending September 30, 2013 and the year ended December 31, 2012 was as follows:

	September 30, 2013			December 31, 2012
Balance, beginning of year	$	129,279		$	173,791
Additions		-			-
Reductions		(18,528	)		(44,512	)
Balance, end of period	$	110,751		$	129,279