Note 7. Allowance for Loan Losses

6 Months Ended

Jun. 30, 2012

Allowance for Credit Losses [Text Block]

7.    Allowance for Loan Losses

The allowance for loan losses (“ALL”) reflected in the accompanying consolidated financial statements represents the allowance available to absorb probable losses inherent in the loan portfolio.  An analysis of changes in the ALL is presented in the following table:

ALLOWANCE FOR LOAN LOSSES

	For Three Months Ended June 30,
	2012			2011
Balance at beginning of period	$	11,849,317		$	9,870,254
Charge-offs		(1,850,714	)		(1,968,395	)
Recoveries		67,596			52,524
Net loans charged-off		(1,783,118	)		(1,915,871	)
Additions to ALL charged to expense		1,500,000			1,920,000
Balance at end of period	$	11,566,199		$	9,874,383

	For Six Months Ended June 30,
	2012			2011
Balance at beginning of period	$	11,012,088		$	9,526,592
Charge-offs		(2,835,160	)		(3,051,523	)
Recoveries		389,271			79,314
Net loans charged-off		(2,445,889	)		(2,972,209	)
Additions to ALL charged to expense		3,000,000			3,320,000
Balance at end of period	$	11,566,199		$	9,874,383