BORROWING ARRANGEMENTS WITH THE FEDERAL HOME LOAN BANK

12 Months Ended

Jun. 30, 2012

BORROWING ARRANGEMENTS WITH THE FEDERAL HOME LOAN BANK

BORROWING ARRANGEMENTS WITH THE FEDERAL HOME LOAN BANK.

NOTE 7—BORROWING ARRANGEMENTS WITH THE FEDERAL HOME LOAN BANK

        The Company has credit available under a loan agreement with the FHLB in the amount of 11% of total assets (as defined), approximately $41,460 of availability at June 30, 2012. As a member of the FHLB, the Company is required to own capital stock in the FHLB and is authorized to apply for advances from the FHLB. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range in maturities. Borrowings under the FHLB would mostly be secured by single family first mortgage loans. The Company had no advances from the FHLB as of June 30, 2012 and 2011 and recognized no interest expense for the respective years ended.