Loan Participation Sales

6 Months Ended

Jun. 30, 2012

5. Loan Participation Sales

During the year ended December 31, 2011, the Company sold participations in two church loans totaling $5.4 million but retained servicing responsibilities for these loans. As a result, we recorded servicing assets totaling $146.9 thousand, which are being amortized using the interest method. The amortization of servicing assets is recorded as an adjustment to interest income and totaled $13.6 thousand for the six months ended June 30, 2012. We did not sell participations in any loans during the six months ended June 30, 2012.

A summary of servicing assets for the six months ended June 30, 2012 and the year ended December 31, 2011 is as follows:

	2012		2011
Balance, beginning of period	$	138	$	--
Additions:
Servicing obligations from sale of loan participations		--		147
Subtractions:
Amortization		14		9
Balance, end of period	$	124	$	138