Note 5: Investment Securities: Other Than Temporary Impairment Policy (Policies)

12 Months Ended

Sep. 30, 2012

Policies

Other Than Temporary Impairment Policy

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.