(3) Allowance for Loan Losses

3 Months Ended

Mar. 31, 2012

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

(3)	Allowance for Loan Losses

Changes in the allowance for loan losses were as follows:

	Three Months Ended March 31,
	2012			2011

Balance at beginning of year	$	2,760,160			3,527,567
Amounts charged off		(132,805	)		(38,809	)
Recoveries on amounts previously charged off		10,897			12,631
Provision for loan losses		100,000			500,000

Balance at March 31	$	2,738,252			4,001,389

- Definition

Disclosure of accounting policy for estimating the allowance for losses on loans and lease receivables. The disclosure may include (a) how the entity determines each element of the allowance, (b) which loans are evaluated individually and which loans are evaluated as a group, (c) how the entity determines both the allocated and unallocated portions of the allowance, (d) how the entity determines the loss factors applied to graded loans in order to develop a general allowance, and (e) what self-correcting mechanism the entity uses to reduce differences between estimated and actual losses.

+ References+ Details

OCONEE FINANCIAL CORP 10-Q