OTHER REAL ESTATE OWNED (Tables)

6 Months Ended

Jun. 30, 2013

OTHER REAL ESTATE OWNED [Abstract]

Foreclosed Real Estate Roll Forward

OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of the activity follows.

	Six Months Ended June 30,		Year Ended December 31,
	2013	2012	2012
Balance at beginning of year	$          6,891,353	$          5,028,513	$          5,028,513
Additions of underlying property	370,800	1,555,770	4,020,494
Disposals of underlying property	-	(395,949)	(1,483,449)
Valuation allowance	(329,976)	(626,176)	(674,205)
Balance at end of period	$          6,932,177	$          5,562,158	$          6,891,353

Foreclosed Real Estate Expenses

Expenses applicable to OREO assets include the following.

	Three Months Ended June 30,		Six Months Ended June 30,
	2013	2012	2013	2012
Valuation allowance	$                   19,476	$                 326,176	$                 329,976	$                 626,176
Operating expenses	23,226	32,546	64,088	30,845
	$                   42,702	$                 358,722	$                 394,064	$                 657,021