Federal Home Loan Bank Stock

6 Months Ended

Dec. 31, 2012

Note 8:

Federal Home Loan Bank Stock

Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula. The Company owned $5,075,000 and $4,175,000 of Federal Home Loan Bank stock as of December 31, 2012 and June 30, 2012 respectively.

The FHLB provides liquidity and funding through advances and the increase in Federal Home Loan Bank stock allowed the Company to increase borrowing capacity of Federal Home Loan Bank advances. In the calendar year 2012, first, second and third quarter dividends were paid at an annualized rate of 25, 30, and 35 basis points, respectively. Management performed an analysis as of December 31, 2012 and June 30, 2012 and deemed the cost method investment in FHLB stock was ultimately recoverable.

- Definition

The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances.

+ References

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Name Federal Regulation (FR)

-Number Title 12

-Section 563c.102

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-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

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-Paragraph 1

-Subparagraph (SX 210.9-03.13(a))

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+ Details