Note 6:

Securities

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


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
December 31, 2012:
U.S. government, federal agency, and government-sponsored enterprises (GSE)	$	122,038	$	5,279	$	—		$	127,317
Mortgage-backed:
GSE – residential		69,106		2,331		(16	)		71,421
State and political subdivisions		3,948		244		(16	)		4,176

	$	195,092	$	7,854	$	(32	)	$	202,914

June 30, 2012:
U.S. government, federal agency, and government-sponsored enterprises (GSE)	$	155,124	$	5,834	$	—		$	160,958
Mortgage-backed:
GSE – residential		56,601		2,268		(2	)		58,867
State and political subdivisions		3,221		260		—			3,481

	$	214,946	$	8,362	$	(2	)	$	223,306

With the exception of U.S. Government, federal agency and GSE securities and GSE residential mortgage-backed securities with a book value of approximately $122,038,000 and $69,106,000, respectively, and a market value of approximately $127,317,000 and $71,421,000, respectively, at December 31, 2012, the Company held no securities at December 31, 2012 with a book value that exceeded 10% of total equity.

All mortgage-backed securities at December 31, 2012, and June 30, 2012 were issued by GSEs.

The amortized cost and fair value of available-for-sale securities at December 31, 2012, 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 Securities
	Amortized Cost		Fair Value

Within one year	$	993	$	1,006
One to five years		59,818		64,403
Five to ten years		65,111		66,014
After ten years		64		70

		125,986		131,493
Mortgage-backed securities		69,106		71,421


Totals	$	195,092	$	202,914

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $55,807,000 and $56,298,000 as of December 31, 2012 and June 30, 2012, respectively.

Gross gains of $571,000 and $299,000, and gross losses of $2,000 and $9,000, resulting from sales of available-for-sale securities were realized for the six month periods ended December 31, 2012 and 2011, respectively. The tax provision applicable to these net realized gains amounted to approximately $228,000 and $116,000, respectively.

Certain investments in debt and marketable equity securities are reported in the financial statements at amounts less than their historical cost. Total fair value of these investments at December 31, 2012 was $5,191,000, which is approximately 2.6% of the Company’s available-for-sale investment portfolio. These declines primarily resulted from recent increases in market interest rates and failure of certain investments to maintain consistent credit quality ratings. Management believes the declines in fair value for these securities are temporary.

The following tables show the gross unrealized losses of the Company’s securities and the fair value of the Company’s securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012 and June 30, 2012:


	December 31, 2012
	Less than 12 Months					12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Available-for-sale Securities:
Mortgage-backed: GSE residential	$	4,144	$	(16	)	$	—	$	—	$	4,144	$	(16	)
State and political subdivisions		1,047		(16	)		—		—		1,047		(16	)


Total temporarily impaired securities	$	5,191	$	(32	)	$	—	$	—	$	5,191	$	(32	)


	June 30, 2012
	Less than 12 Months					12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Available-for-sale Securities:
Mortgage-backed:
GSE residential	$	2,069	$	(2	)	$	—	$	—	$	2,069	$	(2	)


Total temporarily impaired securities	$	2,069	$	(2	)	$	—	$	—	$	2,069	$	(2	)

The unrealized losses on the Company’s investments were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2012.