Note 7:

Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(In thousands)
Available-for-sale Securities:
September 30, 2011:
U.S. government agencies	$	1,687	$	48	$	1	$	1,734
Mortgage-backed securities of government sponsored entities		104,905		3,238		88		108,055
Private-label collateralized mortgage obligations		1,950		56		-		2,006
State and political subdivisions		24,449		1,257		27		25,679

Totals	$	132,991	$	4,599	$	116	$	137,474

March 31, 2011:
U.S. government agencies	$	1,938	$	71	$	1	$	2,008
Mortgage-backed securities of government sponsored entities		99,779		2,597		118		102,258
Private-label collateralized mortgage obligations		2,282		56		-		2,338
State and political subdivisions		25,330		350		328		25,352

Totals	$	129,329	$	3,074	$	447	$	131,956

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(In thousands)
Held-to-maturity Securities:
September 30, 2011:
U.S. government agencies	$	148	$	––	$	1	$	147
Mortgage-backed securities of government sponsored entities		402		14		––		416
State and political subdivisions		14		1		––		15

	$	564	$	15	$	1	$	578

March 31, 2011:
U.S. government agencies	$	153	$	––	$	1	$	152
Mortgage-backed securities of government sponsored entities		417		12		––		429
State and political subdivisions		21		1		––		22

	$	591	$	13	$	1	$	603

Amortized cost and fair value of available-for-sale securities and held-to-maturity securities at September 30, 2011 by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)

Within one year	$	1,516	$	1,563	$	14	$	15
One to five years		1,258		1,291		-		-
Five to ten years		7,475		7,932		––		––
After ten years		15,887		16,627		148		147

		26,136		27,413		162		162

Mortgage-backed securities of government sponsored entities		104,905		108,055		402		416
Private-label collateralized mortgage obligations		1,950		2,006		-		-

Totals	$	132,991	$	137,474	$	564	$	578

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $52.1 million and $55.7 million at September 30, 2011 and March 31, 2011, respectively.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2011 and March 31, 2011, was $13.4 million and $28.6 million, which represented approximately 10% and 22%, respectively, of the Company's aggregate available-for-sale and held-to-maturity investment portfolio. These declines resulted primarily from changes in market interest rates.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these government agency, mortgage-backed and state and political subdivision securities are temporary at September 30, 2011.

Should the impairment of any of these government agency, mortgage-backed and state and political subdivision securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following table shows the Company's investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2011
	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government agencies	$	-	$	-	$	318	$	2	$	318	$	2
Mortgage-backed securities of government sponsored entities		11,713		88		-		-		11,713		88
State and political subdivisions		-		-		1,323		27		1,323		27
Total temporarily impaired securities	$	11,713	$	88	$	1,641	$	29	$	13,354	$	117

	March 31, 2011
	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government agencies	$	-	$	-	$	329	$	2	$	329	$	2
Mortgage-backed securities of government sponsored entities		17,150		118		-		-		17,150		118
State and political subdivisions		10,403		304		761		24		11,164		328
Total temporarily impaired securities	$	27,553	$	422	$	1,090	$	26	$	28,643	$	448