MORTGAGE BANKING ACTIVITIES (Tables)

3 Months Ended

Sep. 30, 2012

Originated Mortgage Servicing Rights Capitalized and Amortized

Originated mortgage servicing rights capitalized and amortized during the three months ended September 30, 2012 and 2011 were as follows:

	Three months ended
	September 30
	2012			2011
Servicing rights:
Beginning of period	$	6,867,334		$	7,519,287
Additions		1,548,248			520,263
Amortized to expense		(972,306	)		(773,379	)
Change in valuation allowance		(604,179	)		(698,468	)
End of period	$	6,839,097		$	6,567,703

Activity in Valuation Allowance for Mortgage Servicing Rights

Activity in the valuation allowance for mortgage servicing rights over the three months ended September 30, 2012, as compared with the same periods during 2011, were as follows:

	Three months ended			Three months ended
	September 30, 2012			September 30, 2011
Balance, beginning of period	$	(816,481	)	$	(304,001	)
Impairment charges		(604,179	)		(698,468	)
Impairment recoveries		—			—
Balance, end of period	$	(1,420,660	)	$	(1,002,469	)

Mortgage Banking Activities

Mortgage banking activities for the three months ended September 30, 2012 and 2011, net consisted of the following:

	Three months ended
	September 30
	2012			2011
Mortgage loan servicing fees	$	671,611		$	654,577
Amortization of mortgage loan servicing rights		(972,306	)		(773,379	)
Impairment of mortgage loan servicing rights		(604,179	)		(698,468	)
Mortgage loan servicing (loss), net		(904,874	)		(817,270	)
Changes in fair value of loans held for sale		(87,634	)		231,052
Changes in fair value of mortgage banking derivatives		567,931			748,776
Realized gains on sale of loans		3,550,824			847,607
Gain on the sale of mortgage loans	$	4,031,121		$	1,827,435