text: The allowance for loan losses as of December 31, 2002 and 2001, is presented below. Management has evaluated 
  the adequacy of the allowance for loan losses by estimating the losses in various categories of the loan portfolio 
  which are identified below: 
  
   2002   2001 
  Allowance for loan losses provided for: 
  
  Loans specifically evaluated as impaired 
  Remaining portfolio  $ 752,385 
   10,466,344  $ 926,636 
   9,675,783 
  
  Total allowance for loan losses  $11,218,729  $10,602,419 
  
  Changes in the allowance for loan losses are summarized as follows: 
  
   December 31, 
   2000 
   2001 
   2002 
  
  Balance at beginning of year  $10,602,419  $ 9,887,646  $ 8,937,542 
  Add: 
  
  Provision for loan losses 
  Loan recoveries 
  Allowance established at acquisition  2,369,634 
  834,150 
  -  1,964,050 
  968,535 
  407,129  2,397,750 
  1,545,080 
  - 
  
  Deduct: 
  Loan charge-offs   (2,587,474)   (2,992,726) 
  
  $ 9,887,646 