FORECLOSED REAL ESTATE

12 Months Ended

Dec. 31, 2011

FORECLOSED REAL ESTATE

NOTE 7 - FORECLOSED REAL ESTATE

Foreclosed assets are presented net of the allowance for losses. An analysis of the activity in foreclosed assets is as follows:

	Years Ended December 31,
	2011			2010
Balance at beginning of year	$	10,469,302		$	922,934
Additions of underlying property		7,273,206			11,768,778
Disposals of underlying property		(10,750,768	)		(1,934,476	)
Valuation allowance		(1,963,227	)		(287,934	)
Balance at end of period	$	5,028,513		$	10,469,302

Expenses applicable to foreclosed assets include the following:

	Years Ended December 31,
	2011		2010
Valuation allowance	$	1,963,227	$	287,934
Operating expenses		489,164		128,465
	$	2,452,391	$	416,399