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Note 5: Investment Securities
 3 Months Ended
Dec. 31, 2012
Notes  
Note 5: Investment Securities

Note 5: Investment Securities

 

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

 

 

 

 

Gross

 

Gross

 

Estimated

 

 

Amortized

Unrealized

 

Unrealized

 

Fair

Carrying

 

Cost

Gains

 

(Losses)

 

Value

Value

December 31, 2012

 

 

 

 

 

 

 

 

 

(In Thousands)

 

 

 

 

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

  U.S. government agency MBS (1)

$11,157

 

$443

 

$-

 

$11,600

 

$11,600

  U.S. government sponsored

 

 

 

 

 

 

 

 

 

    enterprise MBS

7,960

 

468

 

-

 

8,428

 

8,428

  Private issue CMO (2)

1,162

 

-

 

(6)

 

1,156

 

1,156

Total investment securities

$20,279

 

$911

 

$(6)

 

$21,184

 

$21,184

 

 

 

Gross

 

Gross

 

Estimated

 

 

Amortized

Unrealized

 

Unrealized

 

Fair

Carrying

 

Cost

Gains

 

(Losses)

 

Value

Value

June 30, 2012

 

 

 

 

 

 

 

 

 

(In Thousands)

 

 

 

 

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

  U.S. government agency MBS

$11,854

 

$460

 

$-

 

$12,314

 

$12,314

  U.S. government sponsored

 

 

 

 

 

 

 

 

 

    enterprise MBS

8,850

 

492

 

-

 

9,342

 

9,342

  Private issue CMO

1,243

 

4

 

(5)

 

1,242

 

1,242

Total investment securities

$21,947

 

$956

 

$(5)

 

$22,898

 

$22,898

 

(1)       Mortgage-Backed Securities (“MBS”).

(2)       Collateralized Mortgage Obligations (“CMO”).

 

 

 

 

In the second quarter of fiscal 2013 and 2012, the Corporation received MBS principal payments of $905,000 and $1.1 million, respectively, and did not purchase or sell investment securities.

 

 

The Corporation evaluates individual investment securities quarterly for other-than-temporary declines in market value.  As of December 31, 2012 and June 30, 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.  The unrealized holding losses were 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 December 31, 2012 and June 30, 2012.  The Bank does not believe that there are any other-than-temporary impairments at December 31, 2012 and 2011; therefore, no impairment losses have been recorded for the quarter ended December 31, 2012 and 2011.  The Corporation 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 December 31, 2012 and June 30, 2012 were as follows:

 

 

 

December 31, 2012

 

June 30, 2012

 

 

 

Estimated

 

 

 

Estimated

 

Amortized

 

Fair

 

Amortized

 

Fair

 

Cost

 

Value

 

Cost

 

Value

(In Thousands)

 

 

 

 

 

 

 

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

20,279

 

21,184

 

21,947

 

22,898

Total investment securities

$20,279

 

$21,184

 

$21,947

 

$22,898