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Investment Securities

3 Months Ended

Mar. 31, 2012

Note 5: Investment Securities

The amortized cost and estimated fair value of investment securities as of March 31, 2012 and June 30, 2011 were as follows:

March 31, 2012	Amortized Cost	Gross Unrealized Gains	Gross Unrealized (Losses)		Estimated Fair Value	Carrying Value
(In Thousands)
Available for sale
U.S. government agency MBS (1)	$ 12,210	$ 455	$ -		$ 12,665	$ 12,665
U.S. government sponsored enterprise MBS	9,119	466	-		9,585	9,585
Private issue CMO (2)	1,288	6	(3	)	1,291	1,291
Total investment securities	$ 22,617	$ 927	$ (3	)	$ 23,541	$ 23,541

(1)	Mortgage-backed securities (“MBS”).
(2)	Collateralized Mortgage Obligations (“CMO”).

June 30, 2011	Amortized Cost	Gross Unrealized Gains	Gross Unrealized (Losses)		Estimated Fair Value	Carrying Value
(In Thousands)
Available for sale
U.S. government agency MBS	$ 13,935	$ 474	$ -		$ 14,409	$ 14,409
U.S. government sponsored enterprise MBS	9,960	457	-		10,417	10,417
Private issue CMO	1,396	-	(29	)	1,367	1,367
Total investment securities	$ 25,291	$ 931	$ (29	)	$ 26,193	$ 26,193

In the third quarter of fiscal 2012 and 2011, the Bank received MBS principal payments of $688,000 and $885,000, respectively, and did not purchase or sell investment securities. For the first nine months of fiscal 2012 and 2011, the Bank received MBS principal payments of $2.7 million and $4.6 million, respectively, and did not purchase or sell investment securities.

The Bank evaluates individual investment securities quarterly for other-than-temporary declines in market value. As of March 31, 2012, the gross unrealized holding losses relate to one adjustable rate private issue CMO which has been in an unrealized loss position for more than 12 months; while as of June 30, 2011, the gross unrealized holding losses relate to two adjustable rate private issue CMO. The unrealized holding losses are primarily the result of perceived credit and liquidity concerns of privately issued CMO investment securities. Based on the nature of the investments, management concluded that such unrealized losses were not other than temporary as of June 30, 2011. The Bank does not believe that there are any other-than-temporary impairments at March 31, 2012 or June 30, 2011; therefore, no impairment losses have been recorded for the quarter ended March 31, 2012. The Bank intends and has the ability to hold these CMO investment securities until maturity and will not likely be required to sell the CMO investment securities before realizing a full recovery.

Contractual maturities of investment securities as of March 31, 2012 and June 30, 2011 were as follows:

(In Thousands)	March 31, 2012		June 30, 2011
		Estimated			Estimated
	Amortized	Fair		Amortized	Fair
	Cost	Value		Cost	Value
Available for sale
Due in one year or less	$ -	$ -		$ -	$ -
Due after one through five years	-	-		-	-
Due after five through ten years	-	-		-	-
Due after ten years	22,617	23,541		25,291	26,193
Total investment securities	$ 22,617	$ 23,541		$ 25,291	$ 26,193