Note 9. Troubled Debt Restructuring

3 Months Ended

Jun. 30, 2011

Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block]

9.     Troubled Debt Restructuring

A troubled debt restructuring (“TDR”) includes a loan modification where a borrower is experiencing financial difficulty and the Bank grants a concession to that borrower that the Bank would not otherwise consider except for the borrower’s financial difficulties.  A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability.  If a TDR is placed on nonaccrual status, it remains there until it performs under the restructured terms for six consecutive months at which time it is returned to accrual status.

	As of June 30, 2011
						Commercial			Residential
	Commercial		Construction			Real Estate			Real Estate			Multifamily			Consumer		Total
Accruing
December 31, 2010	$	-	$	2,005,213		$	11,510,812		$	4,747,253		$	-		$	-	$	18,263,278
Principal payments		-		-			(21,150	)		(56,931	)		-			-		(78,081	)
Charge-offs		-		-			-			-			-			-		-
Advances		-		-			413,880			24,737			-			-		438,617
New restructured		-		-			--			3,862,526			-			50,642		3,913,168
Class transfers		-		(1,926,048	)		(3,506,718	)		(605,460	)		-			-		(6,038,226	)
Transfers from
nonaccrual		-		-			-			169,332			-			-		169,332
June 30, 2011	$	-	$	79,165		$	8,396,824		$	8,141,457		$	-		$	50,642	$	16,668,088
Nonaccrual
December 31, 2010	$	-	$	-		$	-		$	2,730,885		$	130,880		$	-	$	2,861,765
Principal payments		-		-			-			(26,083	)		(2,181	)		-		(28,264	)
Charge-offs		-		-			-			-			-			-		-
Advances		-		-			-			60,781			-			-		60,781
New restructured		-		-			-			770,940			-			-		770,940
Class transfers		-		-			--			-			-			-		-
Transfers from
nonaccrual		-		-			-			(169,332	)		-			-		(169,332	)
Ending balance	$	-	$	-		$	-		$	3,367,191		$	128,699		$	-	$	3,495,890
Totals
December 31, 2010	$	-	$	2,005,213		$	11,510,812		$	7,478,138		$	130,880		$	-	$	21,125,043
Principal payments		-		-			(21,150	)		(83,014	)		-(2,181	)		-		(106,345	)
Charge-offs		-		-			-			-			-			-		-
Advances		-		-			413,880			85,518			-			-		499,398
New restructured		-		-			-			4,633,466			-			50,642		4,684,108
Class transfers		-		(1,926,048	)		(3,506,718	)		(605,460	)		-			-		(6,038,226	)
Transfers from
nonaccrual		-		-			-			-			-			-		-
June 30, 2011	$	-	$	79,165		$	8,396,824		$	11,508,648		$	128,699		$	50,642	$	20,163,978

A summary of troubled debt restructurings as of June 30, 2011 and December 31, 2010 is as follows:

	June 30, 2011				December 31, 2010
	Number of		Recorded		Number of		Recorded
	Modifications		Investment		Modifications		Investment
Commercial		-	$	-		-	$	-
Real estate
Construction		1		79,165		3		2,005,213
Commercial		16		8,396,824		19		11,510,812
Residential		61		11,508,648		42		7,478,138
Multifamily		1		128,699		1		130,880
Installment and other		5		50,642		-		-
Total Loans		84	$	20,163,978		65	$	21,125,043