Securities

9 Months Ended

Jun. 30, 2012

Securities [Abstract]

Securities

Note 3. Securities

The amortized cost and estimated market value of securities classified as available for sale and held to maturity at June 30, 2012, and September 30, 2011 are as follows:

	June 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available for Sale
Residential Mortgage-Backed Securities	$	6,101,486	$	321,214	$	—	$	6,422,700
Securities Held to Maturity
U.S. Government and Federal Agency Obligations	$	3,356,244	$	17,210	$	—	$	3,373,454
State and Municipal Securities		1,634,682		157,211		—		1,791,893
	$	4,990,926	$	174,421	$	—	$	5,165,347

	September 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available for Sale
Residential Mortgage-Backed Securities	$	5,834,512	$	333,839	$	—	$	6,168,351
Securities Held to Maturity
State and Municipal Securities	$	1,636,563	$	116,853	$	—	$	1,753,416

The amortized cost and estimated market value of securities at June 30, 2012 and September 30, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2012
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years		—		—		1,342,031		1,364,409
Due five years to ten years		146,422		155,166		1,771,178		1,838,199
Due after ten years		5,955,064		6,267,534		1,877,717		1,962,739
	$	6,101,486	$	6,422,700	$	4,990,926	$	5,165,347

	September 30, 2011
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years		—		—		—		—
Due five years to ten years		168,796		180,628		647,812		699,870
Due after ten years		5,665,716		5,987,723		988,751		1,053,546
	$	5,834,512	$	6,168,351	$	1,636,563	$	1,753,416

Proceeds from the sale of available for sale securities totaled $189,692, realizing gross gains of $896 for the nine months ended June 30, 2012. There were no sales of investment securities for the year ended September 30, 2011.

There were no securities at June 30, 2012 and September 30, 2011 with gross unrealized losses. The Company evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Mortgage-backed securities are invested in U.S. Government Agencies, which guarantee payments to investors regardless of the status of the underlying mortgages. Consideration is given to the length of time and the amount of an unrealized loss, the financial condition of the issuer, and the intent an ability of the Company to retain its investment in the issuer long enough to allow for an anticipated recovery in fair value. The Company monitors the financial condition of these issuers continuously and will record other-than-temporary impairment if the recovery of value is unlikely.

Market Risks

Investments of the Company are exposed to various risks, such as interest rate, market, currency and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term would materially affect investment assets reported in the financial statements. In addition, recent economic uncertainty and market events have led to unprecedented volatility in currency, commodity, credit and equity markets, culminating in failures of some banking and financial service firms and government intervention to solidify others. These recent events underscore the level of investment risk associated with the current economic environment, and accordingly, the level of risk in the Company’s investments.