NOTE 4: INVESTMENTS

AVAILABLE-FOR-SALE – The amortized cost and fair value of securities classified as available-for-sale held at April 30, 2011 and 2010 are summarized below:


(in 000s)

As of April 30,	2011									2010

			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses⁽¹⁾			Value		Cost		Gains		Losses⁽¹⁾			Value


Mortgage-backed securities	$	157,970	$	401	$	(194	)	$	158,177	$	23,026	$	39	$	(49	)	$	23,016
Municipal bonds		8,335		405		–			8,740		8,442		459		–			8,901
Trust preferred security		–		–		–			–		1,854		–		(1,823	)		31

	$	166,305	$	806	$	(194	)	$	166,917	$	33,322	$	498	$	(1,872	)	$	31,948


⁽¹⁾	At April 30, 2011, we had no investments that had been in a continuous loss position for more than twelve months. At April 30, 2010, investments with a cost of $15.7 million and gross unrealized losses of $1.9 million had been in a continuous loss position for more than twelve months.

We did not sell any AFS securities in fiscal year 2011. Proceeds from the sales of AFS securities were $2.1 million and $8.3 million during fiscal years 2010 and 2009, respectively. We recorded no gross realized gains or losses on those sales during fiscal year 2010. Gross realized gains on sales during fiscal year 2009 were $0.7 million; gross

realized losses were $1.3 million. During fiscal years 2011, 2010 and 2009, we recorded other-than-temporary impairments of AFS securities totaling $1.9 million, $1.6 million and $1.5 million, respectively, as a result of an assessment that it was probable we would not collect all amounts due or an assessment that we would not be able to hold the investments until potential recovery of market value.

Contractual maturities of AFS debt securities at April 30, 2011, occur at varying dates over the next 30 years, and are set forth in the table below.

(in 000s)

Cost Basis

Fair Value

Maturing in:

Less than one year

3,023

3,081

Two to five years

3,112

3,331

Six to ten years

2,200

2,328

Beyond

157,970

158,177

166,305

166,917

HELD-TO-MATURITY – HRB Bank is required to maintain a restricted investment in FHLB stock for borrowing availability. The cost of this investment, $3.3 million and $6.0 million at April 30, 2011 and 2010, respectively, represents its redemption value at each balance sheet date, as these investments do not have a ready market.