Note 12 - Subsequent Events

Subsequent eventsare events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Unrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events have occurred that require accrual or disclosure, except for the following unrecognized subsequent event.

Included in other real estate owned at June 30, 2012, were two properties with a carrying value of $5,487,175, which was approximately 25% of the total value of other real estate owned at that date. These properties were subsequently sold for a net loss of $14,620.