Carrying Amounts and Fair Value of Financial Instruments: Fair Value of Foreclosed Assets Policy (Policies)

3 Months Ended

Jun. 30, 2012

Policies

Fair Value of Foreclosed Assets Policy

Foreclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company records these assets as nonrecurring Level 3.