Carrying Amounts and Fair Value of Financial Instruments: Fair Value of Investment Securities Available for Sale Policy (Policies)

3 Months Ended

Jun. 30, 2012

Policies

Fair Value of Investment Securities Available for Sale Policy

Investment securities available for sale are recorded at fair value on a recurring basis. At June 30, 2012, the Company’s investment portfolio was comprised of government and agency bonds, mortgage-backed securities issued by government agencies or government sponsored enterprises, municipal securities and one equity investment. The portfolio did not contain any private label mortgage-backed securities. Fair value measurement is based upon prices obtained from third party pricing services who use independent pricing models which rely on a variety of factors including reported trades, broker/dealer quotes, benchmark yields, economic and industry events and other relevant market information. As such, these securities are classified as Level 2.