Note 5: Investment Securities

12 Months Ended

Sep. 30, 2012

Notes

Note 5: Investment Securities

Note 5: Investment Securities

The amortized cost and estimated fair value of investment securities as of September 30, 2012 and June 30, 2012 were as follows:

		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair	Carrying
	Cost	Gains	(Losses)	Value	Value
September 30, 2012
(In Thousands)
Available for sale
U.S. government agency MBS (1)	$11,479	$460	$-	$11,939	$11,939
U.S. government sponsored
enterprise MBS	8,509	503	-	9,012	9,012
Private issue CMO (2)	1,197	5	(4)	1,198	1,198
Total investment securities	$21,185	$968	$(4)	$22,149	$22,149

		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair	Carrying
	Cost	Gains	(Losses)	Value	Value
June 30, 2012
(In Thousands)
Available for sale
U.S. government agency MBS	$ 11,854	$ 460	$   -	$ 12,314	$ 12,314
U.S. government sponsored
enterprise MBS	8,850	492	-	9,342	9,342
Private issue CMO	1,243	4	(5)	1,242	1,242
Total investment securities	$ 21,947	$ 956	$ (5)	$ 22,898	$ 22,898

⁽¹⁾       Mortgage-Backed Securities (“MBS”).

⁽²⁾       Collateralized Mortgage Obligations (“CMO”).

In the first quarter of fiscal 2013 and 2012, the Bank received MBS principal payments of $762,000 and $898,000, respectively, and did not purchase or sell investment securities.

The Bank evaluates individual investment securities quarterly for other-than-temporary declines in market value.  As of September 30, 2012 and June 30, 2012, the gross unrealized holding losses relate to one adjustable rate private issue CMO which has been in an unrealized loss position for more than 12 months.  The unrealized holding losses are primarily the result of perceived credit and liquidity concerns of privately issued CMO investment securities.  Based on the nature of the investments, management concluded that such unrealized losses were not other than temporary as of September 30, 2012 and June 30, 2012.  The Bank does not believe that there are any other-than-temporary impairments at September 30, 2012 and 2011; therefore, no impairment losses have been recorded for the quarter ended September 30, 2012 and 2011.  The Bank intends and has the ability to hold these CMO investment securities until maturity and will not likely be required to sell the CMO investment securities before realizing a full recovery.

Contractual maturities of investment securities as of September 30, 2012 and June 30, 2012 were as follows:

	September 30, 2012		June 30, 2012
		Estimated		Estimated
	Amortized	Fair	Amortized	Fair
	Cost	Value	Cost	Value
(In Thousands)
Available for sale
Due in one year or less	$-	$-	$-	$-
Due after one through five years	-	-	-	-
Due after five through ten years	-	-	-	-
Due after ten years	21,185	22,149	21,947	22,898
Total investment securities	$21,185	$22,149	$21,947	$22,898