XML 27 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Derivative and Other Financial Instruments | 3 Months Ended
--- | ---
Dec. 31, 2011
Derivative and Other Financial Instruments |
Derivative and Other Financial Instruments | Note 7: Derivative and Other Financial Instruments with Off-Balance Sheet Risks The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines of credit, loan sale commitments to third parties and option contracts. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying Condensed Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss, in the event of non-performance by the counterparty to these financial instruments, is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in entering into financial instruments with off-balance sheet risk as it does for on-balance sheet instruments. As of December 31, 2011 and June 30, 2011, the Corporation had commitments to extend credit (on loans to be held for investment and loans to be held for sale) of $128.0 million and $107.7 million, respectively. The following table provides information regarding undisbursed funds to borrowers on existing lines of credit with the Bank as well as commitments to originate loans to be held for investment.
| December 31, |  | June 30,
Commitments | 2011 |  | 2011
(In Thousands) |  |  |
Undisbursed lines of credit – Mortgage loans | $ 1,106 |  | $ 1,028
Undisbursed lines of credit – Commercial business loans | 1,894 |  | 2,867
Undisbursed lines of credit – Consumer loans | 902 |  | 956
Commitments to extend credit on loans to be held for investment | 200 |  | 200
Total | $ 4,102 |  | $ 5,051
In accordance with ASC 815, “Derivatives and Hedging,” and interpretations of the Derivatives Implementation Group of the FASB, the fair value of the commitments to extend credit on loans to be held for sale, loan sale commitments, commitments to sell MBS, put option contracts and call option contracts are recorded at fair value on the Condensed Consolidated Statements of Financial Condition. At December 31, 2011, $2.1 million was included in other assets and $1.9 million was included in other liabilities; at June 30, 2011, $1.3 million was included in other assets and $0 was included in other liabilities. The Corporation does not apply hedge accounting to its derivative financial instruments; therefore, all changes in fair value are recorded in earnings. The following table provides information regarding allowance for losses of the undisbursed funds and commitments to extend credit on loans to be held for investment.
| For the Quarters Ended December 31, |  | For the Six Months Ended December 31, |
(In Thousands) | 2011 |  | 2010 |  | 2011 |  | 2010 |
Balance, beginning of the period | $ 93 |  | $ 104 |  | $ 94 |  | $ 119 |
Recovery | (21 | ) | (12 | ) | (22 | ) | (27 | )
Balance, end of the period | $ 72 |  | $ 92 |  | $ 72 |  | $ 92 |
The net impact of derivative financial instruments on the Gain on sale of loans of the Condensed Consolidated Statements of Operations during the quarters and six months ended December 31, 2011 and 2010 was as follows:
| For the Quarters Ended December 31, |  | For the Six Months Ended December 31, |
Derivative Financial Instruments | 2011 |  | 2010 |  | 2011 |  | 2010 |
(In Thousands) |  |  |  |  |  |  |  |
Commitments to extend credit on loans to be held for sale | $ (1,344 | ) | $ (1,477 | ) | $ 1,480 |  | $ (2,005 | )
Mandatory loan sale commitments | 128 |  | (350 | ) | (405 | ) | 204 |
TBA(1) MBS trades | (153 | ) | 1,762 |  | (2,092 | ) | 4,403 |
Option contracts | (135 | ) | - |  | (289 | ) | (25 | )
Total | $ (1,504 | ) | $ (65 | ) | $ (1,306 | ) | $ 2,577 |
(1) To be announced (“TBA”). The outstanding derivative financial instruments at the dates indicated were as follows:
| December 31, 2011 |  | June 30, 2011 |
|  |  | Fair |  |  |  | Fair |
Derivative Financial Instruments | Amount |  | Value |  | Amount |  | Value |
(In Thousands) |  |  |  |  |  |  |  |
Commitments to extend credit on loans |  |  |  |  |  |  |  |
to be held for sale (1) | $ 127,843 |  | $ 2,118 |  | $ 107,458 |  | $ 638 |
Best efforts loan sale commitments | (9,699 | ) | - |  | (8,159 | ) | - |
Mandatory loan sale commitments | (109,500 | ) | (2 | ) | (96,356 | ) | 403 |
TBA MBS trades | (218,500 | ) | (1,916 | ) | (183,500 | ) | 176 |
Put option contracts | - |  | - |  | (13,000 | ) | 99 |
Total | $ (209,856 | ) | $ 200 |  | $ (193,557 | ) | $ 1,316 |
(1) | Net of 37.2 percent at December 31, 2011 and 31.0 percent at June 30, 2011 of commitments, which management has estimated may not fund.

X
- Definition No authoritative reference available. + References No definition available. + Details
Name: | fil_DerivativeAndOtherFinancialInstruments
Namespace Prefix: | fil_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | fil_DerivativeAndOtherFinancialInstrumentsAbstract
Namespace Prefix: | fil_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration