LOANS RECEIVABLE

3 Months Ended

Sep. 30, 2012

LOANS RECEIVABLE

NOTE 3 — LOANS RECEIVABLE

Loans receivable at September 30, 2012, and June 30, 2012 consisted of the following:

	September 30,			June 30,
	2012			2012
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	59,297,788		$	58,743,933
1-4 Family Non-Owner Occupied		34,303,456			34,368,320
1-4 Family Second Mortgage		28,729,779			29,202,145
Home Equity Lines of Credit		64,933,215			65,908,899
Home Equity Investment Lines of Credit		5,267,763			5,645,851
One-to-Four Family Construction Loans:
1-4 Family Construction		1,341,302			514,052
1-4 Family Construction Models/Speculative		621,042			1,608,137
Multi-Family Loans:
Multi-Family		62,638,057			53,959,459
Multi-Family Second Mortgage		144,754			145,642
Multi-Family Construction		108,428			5,375,000
Commercial Real Estate Loans:
Commercial		198,023,597			198,287,457
Commercial Second Mortgage		4,799,704			5,750,283
Commercial Lines of Credit		22,656,803			22,335,619
Commercial Construction		9,126,892			7,732,736
Commercial and Industrial Loans		37,556,592			35,443,184
Land Loans:
Lot Loans		9,346,567			12,091,093
Acquisition and Development Loans		18,968,781			19,093,006
Consumer Loans		2,101,434			2,112,708
Total loans receivable		559,965,954			558,317,524
Net deferred loan origination fees		(644,038	)		(637,144	)
Allowance for loan losses		(16,135,640	)		(16,052,865	)
Total loans receivable, net	$	543,186,276		$	541,627,515

The following table presents activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2012:

				One-to-Four						Commercial			Commercial
	One-to-Four			Family			Multi-			Real			and
	Family			Construction			Family			Estate			Industrial			Land			Consumer			Total
Beginning balance at June 30, 2012	$	5,765,276		$	305,312		$	1,903,138		$	5,084,179		$	928,043		$	2,057,301		$	9,616		$	16,052,865
Provision for loan losses		623,779			43,601			(766,960	)		943,294			312,966			(120,627	)		13,947			1,050,000
Charge-offs		(741,685	)		(45,959	)		—			(248,493	)		(12,500	)		(20,078	)		(13,000	)		(1,081,715	)
Recoveries		42,569			10,000			—			17,614			1,585			42,480			242			114,490
Ending balance at September 30, 2012	$	5,689,939		$	312,954		$	1,136,178		$	5,796,594		$	1,230,094		$	1,959,076		$	10,805		$	16,135,640

The following table presents activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2011:

				One-to-Four						Commercial			Commercial
	One-to-Four			Family			Multi-			Real			and
	Family			Construction			Family			Estate			Industrial			Land			Consumer		Total
Beginning balance at June 30, 2011	$	8,841,454		$	1,266,740		$	1,767,335		$	8,458,943		$	1,663,894		$	7,891,305		$	107,222	$	29,996,893
Provision for loan losses		(511,394	)		39,566			(360,444	)		949,896			493,657			728,029			160,690		1,500,000
Charge-offs		(476,158	)		(109,322	)		(236,663	)		(1,089,347	)		(29,609	)		(28,421	)		—		(1,969,520	)
Recoveries		4,765			—			—			19,271			1,755			—			—		25,791
Ending balance at September 30, 2011	$	7,858,667		$	1,196,984		$	1,170,228		$	8,338,763		$	2,129,697		$	8,590,913		$	267,912	$	29,553,164

The following table presents the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2012. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees, but excludes accrued interest receivable which is not considered to be material.

			One-to-Four				Commercial		Commercial
	One-to-Four		Family		Multi-		Real		and
	Family		Construction		Family		Estate		Industrial		Land		Consumer		Total
Allowance for loan losses
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	699,204	$	101,716	$	—	$	98,725	$	300,860	$	252,000	$	—	$	1,452,505
Collectively evaluated for impairment		4,990,735		211,238		1,136,178		5,697,869		929,234		1,707,076		10,805		14,683,135
Total ending allowance balance	$	5,689,939	$	312,954	$	1,136,178	$	5,796,594	$	1,230,094	$	1,959,076	$	10,805	$	16,135,640
Loans
Loans individually evaluated for impairment	$	12,208,532	$	833,904	$	300,254	$	11,851,912	$	540,441	$	6,763,662	$	—	$	32,498,705
Loans collectively evaluated for impairment		180,102,030		1,126,183		62,518,652		222,485,254		36,972,956		21,519,119		2,099,017		526,823,211
Total ending loans balance	$	192,310,562	$	1,960,087	$	62,818,906	$	234,337,166	$	37,513,397	$	28,282,781	$	2,099,017	$	559,321,916

The following table presents the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of June 30, 2012. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees, but excludes accrued interest receivable which is not considered to be material.

			One-to-Four				Commercial		Commercial
	One-to-Four		Family		Multi-		Real		and
	Family		Construction		Family		Estate		Industrial		Land		Consumer		Total
Allowance for loan losses
Ending allowance balance attributable to loans
Individually evaluated for impairment	$	665,033	$	101,716	$	—	$	98,725	$	300,860	$	252,000	$	—	$	1,418,334
Collectively evaluated for impairment		5,100,243		203,596		1,903,138		4,985,454		627,183		1,805,301		9,616		14,634,531
Total ending allowance balance	$	5,765,276	$	305,312	$	1,903,138	$	5,084,179	$	928,043	$	2,057,301	$	9,616	$	16,052,865
Loans
Loans individually evaluated for impairment	$	13,243,350	$	880,749	$	622,228	$	11,902,730	$	740,297	$	7,189,109	$	—	$	34,578,463
Loans collectively evaluated for impairment		180,404,558		1,239,018		58,789,996		221,936,205		34,662,439		23,959,404		2,110,297		523,101,917
Total ending loans balance	$	193,647,908	$	2,119,767	$	59,412,224	$	233,838,935	$	35,402,736	$	31,148,513	$	2,110,297	$	557,680,380

The following table presents loans individually evaluated for impairment by class of loan as of September 30, 2012 and the average recorded investment and interest income recognized by class for the three months ended September 30, 2012:

	September 30, 2012
	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance (1)		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	5,878,741	$	5,075,565	$	0	$	5,373,322	$	0	$	0
1-4 Family Non-Owner Occupied		3,487,465		2,130,102		0		2,291,842		164		164
1-4 Family Second Mortgage		1,405,390		1,142,585		0		1,186,435		0		0
Home Equity Lines of Credit		1,751,282		1,749,268		0		1,790,931		0		0
Home Equity Investment Lines of Credit		157,122		156,941		0		156,942		0		0
One-to-Four Family Construction Loans:
1-4 Family Construction		0		0		0				0		0
1-4 Family Construction Models/Speculative		678,779		308,146		0		331,566		0		0
Multi-Family Loans:
Multi-Family		312,714		300,254		0		461,241		0		0
Multi-Family Second Mortgage		0		0		0		0		0		0
Multi-Family Construction		0		0		0		0		0		0
Commercial Real Estate Loans:
Commercial		10,366,525		9,239,212		0		9,262,945		43,972		43,972
Commercial Second Mortgage		0		0		0				0		0
Commercial Lines of Credit		613,910		613,204		0		614,870		0		0
Commercial Construction		828,491		643,855		0		643,859		0		0
Commercial and Industrial Loans		484,799		239,927		0		339,854		0		0
Land Loans:
Lot Loans		5,379,609		4,254,141		0		3,966,345		11,569		11,569
Acquisition and Development Loans		4,990,178		2,374,790		0		2,874,945		0		0
Consumer Loans		0		0		0		0		0		0
Total with no related allowance recorded	$	36,335,005	$	28,227,990	$	0	$	29,295,097	$	55,705	$	55,705
With an allowance recorded
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	231,051	$	230,786	$	39,982	$	231,635	$	0	$	0
1-4 Family Non-Owner Occupied		116,463		116,329		8,286		116,778		0		0
1-4 Family Second Mortgage		246,621		246,337		14,685		246,674		592		592
Home Equity Lines of Credit		963,762		962,653		338,080		928,753		0		0
Home Equity Investment Lines of Credit		398,424		397,966		298,171		402,629		0		0
One-to-Four Family Construction Loans:
1-4 Family Construction		0		0		0		0		0		0
1-4 Family Construction Models/Speculative		526,363		525,758		101,716		525,760		7,062		7,062
Multi-Family Loans:
Multi-Family		0		0		0		0		0		0
Multi-Family Second Mortgage		0		0		0		0		0		0
Multi-Family Construction		0		0		0		0		0		0
Commercial Real Estate Loans:
Commercial		1,357,202		1,355,641		98,725		1,355,647		0		0
Commercial Second Mortgage		0		0		0		0		0		0
Commercial Lines of Credit		0		0		0				0		0
Commercial Construction		0		0		0		0		0		0
Commercial and Industrial Loans		300,860		300,514		300,860		300,515		0		0
Land Loans:
Lot Loans		134,886		134,731		252,000		135,095		2,031		2,031
Acquisition and Development Loans		0		0		0		0		0		0
Consumer Loans		0		0		0		0		0		0
Total with an allowance recorded	$	4,275,632	$	4,270,715	$	1,452,505	$	4,243,486	$	9,685	$	9,685
Total loans evaluated for impairment	$	40,610,637	$	32,498,705	$	1,452,505	$	33,538,583	$	65,390	$	65,390

(1) There are $14.5 million of loans individually identified for impairment accruing interest.

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2012:

	June 30, 2012
	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance (1)		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	6,380,803	$	5,671,079	$	0	$	5,437,834	$	30,882	$	30,882
1-4 Family Non-Owner Occupied		4,597,708		2,453,581		0		3,503,049		48,828		48,828
1-4 Family Second Mortgage		1,455,914		1,230,284		0		1,374,161		3,958		3,958
Home Equity Lines of Credit		1,834,685		1,832,595		0		1,344,562		0		0
Home Equity Investment Lines of Credit		157,120		156,943		0		204,703		0		0
One-to-Four Family Construction Loans:
1-4 Family Construction		0		0		0		52,573		4,821		4,821
1-4 Family Construction Models/Speculative		678,779		354,986		0		475,027		0		0
Multi-Family Loans:
Multi-Family		635,053		622,228		0		550,760		4,081		4,081
Multi-Family Second Mortgage		0		0		0		0		0		0
Multi-Family Construction		0		0		0		0		0		0
Commercial Real Estate Loans:
Commercial		10,902,253		9,286,679		0		8,005,131		147,148		147,148
Commercial Second Mortgage		0		0		0		192,399		1,660		1,660
Commercial Lines of Credit		617,240		616,536		0		2,413,942		0		0
Commercial Construction		828,490		643,863		0		575,159		0		0
Commercial and Industrial Loans		801,075		439,781		0		2,335,961		662		662
Land Loans:
Lot Loans		5,235,050		3,678,550		0		2,955,360		5,519		5,519
Acquisition and Development Loans		5,986,575		3,375,100		0		2,258,295		19,132		19,132
Consumer Loans		0		0		0		0		0		0
Total with no related allowance recorded	$	40,110,745	$	30,362,205	$	0	$	31,678,916	$	266,691	$	266,691
With an allowance recorded
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	232,751	$	232,485	$	39,981	$	526,956	$	0	$	0
1-4 Family Non-Owner Occupied		117,360		117,226		8,286		1,243,154		10,112		10,112
1-4 Family Second Mortgage		247,293		247,011		14,685		175,881		0		0
Home Equity Lines of Credit		895,875		894,852		299,759		1,629,256		0		0
Home Equity Investment Lines of Credit		407,757		407,293		302,322		470,382		0		0
One-to-Four Family Construction Loans:
1-4 Family Construction		0		0		0		0
1-4 Family Construction Models/Speculative		526,363		525,762		101,716		1,064,520		14,047		14,047
Multi-Family Loans:
Multi-Family		0		0		0		92,056		0		0
Multi-Family Second Mortgage		0		0		0		0		0		0
Multi-Family Construction		0		0		0		0		0		0
Commercial Real Estate Loans:
Commercial		1,357,202		1,355,653		98,725		3,796,149		37,340		37,340
Commercial Second Mortgage		0		0		0		34,220		0		0
Commercial Lines of Credit		0		0		0		48,854		0		0
Commercial Construction		0		0		0		711,804		0		0
Commercial and Industrial Loans		300,860		300,517		300,860		1,404,807		0		0
Land Loans:
Lot Loans		135,614		135,459		252,000		962,537		0		0
Acquisition and Development Loans		0		0		0		2,397,176		0		0
Consumer Loans		0		0		0		0		0		0
Total with an allowance recorded	$	4,221,075	$	4,216,258	$	1,418,334	$	14,557,752	$	61,499	$	61,499
Total loans evaluated for impairment	$	44,331,820	$	34,578,463	$	1,418,334	$	46,236,668	$	328,190	$	328,190

(1) There are $13.9 million of loans individually identified for impairment accruing interest.

The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2011:

	September 30, 2011
	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance (1)		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	6,101,095	$	6,091,111	$	—	$	6,605,736	$	47,473	$	47,473
1-4 Family Non-Owner Occupied		2,845,537		2,840,881		—		1,998,029		7,295		7,295
1-4 Family Second Mortgage		1,517,563		1,515,080		—		1,279,294		107		107
Home Equity Lines of Credit		796,506		795,203		—		867,519		582		582
Home Equity Investment Lines of Credit		310,121		309,614		—		221,646		317		317
One-to-Four Family Construction Loans:
1-4 Family Construction		—		—		—		—		—		—
1-4 Family Construction Models/Speculative		176,887		176,598		—		176,753		1,322		1,322
Multi-Family Loans:
Multi-Family		305,904		305,404		—		1,224,791		—		—
Multi-Family Second Mortgage		—		—		—		—		—		—
Multi-Family Construction		—		—		—		—		—		—
Commercial Real Estate Loans:
Commercial		7,266,866		7,254,974		—		6,842,586		25,577		25,577
Commercial Second Mortgage		571,473		570,538		—		570,519		—		—
Commercial Lines of Credit		2,623,140		2,618,848		—		2,758,567		2,186		2,186
Commercial Construction		370,000		369,395		—		369,382		—		—
Commercial and Industrial Loans		2,559,945		2,555,755		—		2,057,142		—		—
Land Loans:
Lot Loans		1,344,192		1,341,993		—		1,153,055		807		807
Acquisition and Development Loans		109,818		109,638		—		274,431		—		—
Consumer Loans		—		—		—				—		—
Total with no related allowance recorded	$	26,899,047	$	26,855,032	$	—	$	26,399,450	$	85,666	$	85,666
With an allowance recorded
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	1,631,018	$	1,628,349	$	405,552	$	1,158,082	$	719	$	719
1-4 Family Non-Owner Occupied		4,625,921		4,618,352		1,924,308		4,747,990		3,565		3,565
1-4 Family Second Mortgage		457,261		456,513		224,653		361,465		—		—
Home Equity Lines of Credit		2,329,197		2,325,385		987,669		2,298,073		—		—
Home Equity Investment Lines of Credit		345,735		345,170		102,008		345,158		1,286		1,286
One-to-Four Family Construction Loans:
1-4 Family Construction		—		—		—		—		—		—
1-4 Family Construction Models/Speculative		2,685,405		2,681,011		862,554		2,838,155		—		—
Multi-Family Loans:
Multi-Family		368,828		368,224		226,067		368,212		—		—
Multi-Family Second Mortgage		—		—		—		—		1,660		1,660
Multi-Family Construction		—		—		—		—		—		—
Commercial Real Estate Loans:
Commercial		6,378,282		6,367,846		929,808		7,485,402		6,936		6,936
Commercial Second Mortgage		137,105		136,881		3,553		68,440		—		—
Commercial Lines of Credit		—		—		—		—		—		—
Commercial Construction		2,851,883		2,847,217		751,178		3,146,613		—		—
Commercial and Industrial Loans		3,279,788		3,274,422		1,041,066		2,456,243		2,920		2,920
Land Loans:
Lot Loans		3,202,019		3,196,779		1,291,302		3,084,307		6,742		6,742
Acquisition and Development Loans		9,604,420		9,588,705		4,810,417		9,826,391		24,176		24,176
Consumer Loans		—		—		—		—		—		—
Total with an allowance recorded	$	37,896,862	$	37,834,854	$	13,560,135	$	38,184,531	$	48,004	$	48,004
Total loans evaluated for impairment	$	64,795,909	$	64,689,886	$	13,560,135	$	64,583,981	$	133,670	$	133,670

(1) There are $17.0 million of loans individually identified for impairment accruing interest.

Past Due and Non-Accrual Loans

The following table presents the recorded investment in non-accrual loans and loans past due over 90 days still on accrual by class of loan as of September 30, 2012 and June 30, 2012. Non-accrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

	September 30, 2012				June 30, 2012
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
	Nonaccrual(1)		Still Accruing(2)		Nonaccrual(1)		Still Accruing(2)
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	2,293,702	$	—	$	2,871,746	$	—
1-4 Family Non-Owner Occupied		2,084,520		0		2,461,281		0
1-4 Family Second Mortgage		481,843		0		566,444		0
Home Equity Lines of Credit		2,715,044		0		2,727,447		0
Home Equity Investment Lines of Credit		555,545		0		564,235		0
One-to-Four Family Construction Loans:
1-4 Family Construction		—		0		0		0
1-4 Family Construction Models/Speculative		308,927		0		355,355		0
Multi-Family Loans:
Multi-Family		5,720		0		324,602		0
Multi-Family Second Mortgage		—		0		0		0
Multi-Family Construction		—		0		0		0
Commercial Real Estate Loans:
Commercial		3,146,513		0		3,310,170		0
Commercial Second Mortgage		—		0		0		0
Commercial Lines of Credit		613,910		0		616,537		0
Commercial Construction		644,808		0		644,072		0
Commercial and Industrial Loans		238,229		0		437,729		0
Land Loans:
Lot Loans		3,578,542		0		3,815,778		0
Acquisition and Development Loans		1,197,045		0		1,380,199		0
Consumer Loans		—		0		0		0
Total	$	17,864,348	$	—	$	20,075,595	$	—

(1) Non-accrual status denotes loans on which, in the opinion of management, the collection of additional interest is unlikely, or loans that meet the non-accrual criteria established by regulatory authorities. Payments received on a non-accrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on an assessment of the collectibility of the principal balance of the loan.

(2) At September 30, 2012 and June 30, 2012, the Company had balances of approximately $6.1 million and $6.3 million, respectively, in loans that have matured and continue to make current payments. These loans are not considered past due as a result of their payment status being current.

The following table presents the aging of the recorded investment in past due loans as of September 30, 2012 by class of loan. Performing loans are accruing loans less than 90 days past due. Nonperforming loans are all loans not accruing or greater than 90 days past due and accruing. At September 30, 2012, the Company had a balance of approximately $6.1 million in loans that were contractually past maturity but were not considered past due as a result of the payment status being current.

					Greater Than
	30-59 Days		60-89 Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Performing Loans
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	2,050,531	$	247,273	$	—	$	2,297,804	$	54,638,081	$	56,935,885
1-4 Family Non-Owner Occupied		16,284		—		—		16,284		32,163,198		32,179,482
1-4 Family Second Mortgage		273,583		—		—		273,583		27,941,310		28,214,893
Home Equity Lines of Credit		777,134		19,991		—		797,125		61,346,364		62,143,489
Home Equity Investment Lines of Credit		235,512		—		—		235,512		4,470,647		4,706,159
One-to-Four Family Construction Loans:
1-4 Family Construction		—		—		—		—		1,339,759		1,339,759
1-4 Family Construction Models/Speculative		—		—		—		—		311,401		311,401
Multi-Family Loans:
Multi-Family		235,540		—		—		235,540		62,324,755		62,560,295
Multi-Family Second Mortgage		—		—		—		—		144,588		144,588
Multi-Family Construction		—		—		—		—		108,303		108,303
Commercial Real Estate Loans:
Commercial		405,037		616,238		—		1,021,275		193,628,054		194,649,329
Commercial Second Mortgage		—		—		—		—		4,794,184		4,794,184
Commercial Lines of Credit		587,524		1,183,484		—		1,771,008		20,245,827		22,016,835
Commercial Construction		—		—		—		—		8,471,587		8,471,587
Commercial and Industrial Loans										37,275,168		37,275,168
Land Loans:
Lot Loans		14,622		95,903		—		110,525		5,646,750		5,757,275
Acquisition and Development Loans		—		—		—		—		17,749,919		17,749,919
Consumer Loans		—		—		—		—		2,099,017		2,099,017
Total Performing Loans	$	4,595,767	$	2,162,889	$	—	$	6,758,656	$	534,698,912	$	541,457,568
Nonperforming Loans
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	—	$	—	$	2,036,669	$	2,036,669	$	257,033	$	2,293,702
1-4 Family Non-Owner Occupied		57,235		58,470		1,870,021		1,985,726		98,794		2,084,520
1-4 Family Second Mortgage		—		41,014		393,349		434,363		47,480		481,843
Home Equity Lines of Credit		119,966		—		2,249,808		2,369,774		345,270		2,715,044
Home Equity Investment Lines of Credit		84,536		—		471,009		555,545		—		555,545
One-to-Four Family Construction Loans:
1-4 Family Construction		—		—		—		—		—		—
1-4 Family Construction Models/Speculative		—		—		190,256		190,256		118,671		308,927
Multi-Family Loans:
Multi-Family		—		—		5,720		5,720		—		5,720
Multi-Family Second Mortgage		—		—		—		—		—		—
Multi-Family Construction		—		—		—		—		—		—
Commercial Real Estate Loans:
Commercial		—		—		3,013,679		3,013,679		132,834		3,146,513
Commercial Second Mortgage		—		—		—		—		—		—
Commercial Lines of Credit		—		—		494,972		494,972		118,938		613,910
Commercial Construction		—		—		644,808		644,808		—		644,808
Commercial and Industrial Loans		—		—		38,229		38,229		200,000		238,229
Land Loans:
Lot Loans		—		—		3,096,352		3,096,352		482,190		3,578,542
Acquisition and Development Loans		—		—		1,197,045		1,197,045		—		1,197,045
Consumer Loans		—		—		—		—		—		—
Total Nonperforming Loans	$	261,737	$	99,484	$	15,701,917	$	16,063,138	$	1,801,210	$	17,864,348
Total Loans	$	4,857,504	$	2,262,373	$	15,701,917	$	22,821,794	$	536,500,122	$	559,321,916

The following table presents the aging of the recorded investment in past due loans as of June 30, 2012 by class of loan. Performing loans are accruing loans less than 90 days past due. Nonperforming loans are all loans not accruing. At June 30, 2012, the Company had a balance of approximately $6.3 million in loans that were contractually past maturity but were not considered past due as a result of the payment status being current.

					Greater Than
	30-59 Days		60-89 Days		90 Days		Total		Loans Not
	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Performing Loans
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	584,430	$	—	$	—	$	584,430	$	55,220,719	$	55,805,149
1-4 Family Non-Owner Occupied		375,660		303,667		—		679,327		31,188,492		31,867,819
1-4 Family Second Mortgage		14,221		—		—		14,221		28,588,155		28,602,376
Home Equity Lines of Credit		114,558		23,230		—		137,788		62,968,449		63,106,237
Home Equity Investment Lines of Credit		200,657		—		—		200,657		4,874,516		5,075,173
One-to-Four Family Construction Loans:
1-4 Family Construction		—		145,771		—		145,771		367,695		513,466
1-4 Family Construction Models/Speculative		—		—		—		—		1,250,946		1,250,946
Multi-Family Loans:
Multi-Family		—		—		—		—		53,573,280		53,573,280
Multi-Family Second Mortgage		—		—		—		—		145,476		145,476
Multi-Family Construction		—		—		—		—		5,368,866		5,368,866
Commercial Real Estate Loans:
Commercial		744,536		—		—		744,536		194,006,468		194,751,004
Commercial Second Mortgage		—		—		—		—		5,743,721		5,743,721
Commercial Lines of Credit		—		—		—		—		21,693,593		21,693,593
Commercial Construction		—		—		—		—		7,079,839		7,079,839
Commercial and Industrial Loans		—		—		—		—		34,965,008		34,965,007
Land Loans:
Lot Loans		—		—		—		—		8,261,518		8,261,518
Acquisition and Development Loans		—		—		—		—		17,691,018		17,691,018
Consumer Loans		—		58,394		—		58,394		2,051,903		2,110,297
Total Performing Loans	$	2,034,062	$	531,062	$	—	$	2,565,124	$	535,039,662	$	537,604,785
Nonperforming Loans
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	105,333	$	—	$	2,124,062	$	2,229,395	$	642,351	$	2,871,746
1-4 Family Non-Owner Occupied		—		—		2,405,774		2,405,774		55,507		2,461,281
1-4 Family Second Mortgage		—		—		499,154		499,154		67,290		566,444
Home Equity Lines of Credit		14,607		—		2,371,962		2,386,569		340,878		2,727,447
Home Equity Investment Lines of Credit		—		134,195		430,041		564,236		—		564,236
One-to-Four Family Construction Loans:
1-4 Family Construction		—		—		—		—		—		—
1-4 Family Construction Models/Speculative		—		—		235,945		235,945		119,410		355,355
Multi-Family Loans:
Multi-Family		—		—		324,602		324,602		—		324,602
Multi-Family Second Mortgage		—		—		—		—		—		—
Multi-Family Construction		—		—		—		—		—		—
Commercial Real Estate Loans:
Commercial		—		—		3,166,992		3,166,992		143,178		3,310,170
Commercial Second Mortgage		—		—		—		—		—		—
Commercial Lines of Credit		—		122,129		494,407		616,536		—		616,536
Commercial Construction		—		—		644,072		644,072		—		644,072
Commercial and Industrial Loans		—		—		237,957		237,957		199,772		437,729
Land Loans:
Lot Loans		—		—		3,144,721		3,144,721		671,057		3,815,778
Acquisition and Development Loans		—		—		1,380,199		1,380,199		—		1,380,199
Consumer Loans		—		—		—		—		—		—
Total Nonperforming Loans	$	119,940	$	256,324	$	17,459,888	$	17,836,152	$	2,239,443	$	20,075,595
Total Loans	$	2,154,002	$	787,386	$	17,459,888	$	20,401,276	$	537,279,105	$	557,680,380

Troubled Debt Restructurings:

Included in loans individually impaired are loans with recorded investment of $15,345,654 and $15,590,705 for which the Company has allocated $153,391 of specific reserves to customers whose terms have been modified in troubled debt restructurings as of both September 30, 2012 and June 30, 2012, respectively. Included in troubled debt restructurings are $1,608,276 and $1,805,855 of restructured loans on non-accrual at September 30, 2012 and June 30, 2012, respectively. Of the restructured loans, both performing and non-accrual, one loan totaling $111,944 was not performing in accordance with its modified terms. There are no commitments to lend additional amounts at September 30, 2012 and June 30, 2012.

The following table presents the aggregate balance of loans by loan class whose terms have been modified in troubled debt restructurings as of September 30, 2012 and June 30, 2012:

			Outstanding				Outstanding
			Recorded				Recorded
	Number		Investment		Number		Investment
	of Loans		9/30/2012		of Loans		6/30/2012
Troubled Debt Restructurings:
One-to-Four Family Loans:
1-4 Family Owner Occupied		20	$	3,756,859		20	$	3,775,715
1-4 Family Non-Owner Occupied		1		49,594		1		53,993
1-4 Family Second Mortgage		5		908,979		5		912,147
Home Equity Lines of Credit		1		63,782		1		63,782
Home Equity Investment Lines of Credit		0		—		0		0
One-to-Four Family Construction Loans:
1-4 Family Construction		0		—		0		0
1-4 Family Construction Models/Speculative		0		—		0		0
Multi-Family Loans:
Multi-Family		1		294,893		1		297,979
Multi-Family Second Mortgage		0		—		0		0
Multi-Family Construction		0		—		0		0
Commercial Real Estate Loans:
Commercial		12		8,230,906		12		8,264,020
Commercial Second Mortgage		0		—		0		0
Commercial Lines of Credit		0		—		0		0
Commercial Construction		0		—		0		0
Commercial and Industrial Loans		2		40,485		2		40,696
Land Loans:
Lot Loans		0		—		0		0
Acquisition and Development Loans		2		2,000,156		2		2,182,373
Consumer Loans		0		—		0		0
Total		44	$	15,345,654		44	$	15,590,705

The summary of activity for troubled debt restructured loans for the three months ending September 30, 2012 was as follows:

	Three months ended
	September 30, 2012
Troubled Debt Restructurings:
Beginning Balance	$	15,590,705
Additions		—
Charge-offs		(3,688	)
Payoffs or pay downs		(241,363	)
Ending Balance	$	15,345,654

During the periods ended September 30, 2012 and September 30, 2011, the terms of certain loans to borrowers experiencing financial difficulty were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

The following table presents loans, by classes, which were modified during the three months ended September 30, 2012. All modifications during the three months ended September 30, 2012 were limited to loans which were already classified as troubled debt restructurings and involved an extension of the maturity dates and were for periods ranging from 12 months to 24 months.

	September 30, 2012
			Pre-Modification		Post-Modification
	Number		Outstanding Recorded		Outstanding Recorded
	of Loans		Investment		Investment
Troubled Debt Restructurings:
1-4 Family Owner Occupied		0		0		0
1-4 Family Non-Owner Occupied		0		0		0
Commercial Real Estate		1	$	1,283,869	$	1,283,869
Commercial Second Mortgage		0		0		0
Acquisition and Development		1		816,672		816,672
Total		2	$	2,100,541	$	2,100,541

The troubled debt restructurings described above did not result in an increase in the allowance for loan losses for the three months ended September 30, 2012, and did not result in charge offs during the three months ended September 30, 2012.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three-month period ended September 30, 2011:

	September 30, 2011
			Pre-Modification		Post-Modification
	Number		Outstanding Recorded		Outstanding Recorded
	of Loans		Investment		Investment
Troubled Debt Restructurings:
Commercial Real Estate		1	$	295,362	$	295,362
Commercial and Industrial		1		44,149		44,149
Total		2	$	339,511	$	339,511

The troubled debt restructurings described above increased the allowance for loan losses by $36,395 and did not result in charge offs during the period ended September 30, 2011.

During the three months ended September 30, 2012, one loan modified as a troubled debt restructure had a payment default within twelve months following the modification.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the period ended September 30, 2011:

			Pre-Modification		Post-Modification
	Number		Outstanding Recorded		Outstanding Recorded
	of Loans		Investment		Investment
Troubled Debt Restructurings:
1-4 Family Non-Owner Occupied		13	$	1,050,206	$	1,050,206
Home Equity Lines of Credit		1		63,782		63,782
Total		14	$	1,113,988	$	1,113,988

For the purpose of this disclosure, a loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The troubled debt restructurings that subsequently defaulted described above did not result in increasing the allowance or result in charge offs during the period ending September 30, 2011.

Credit Quality Indicators

The Company categorizes loans into risk strata based on relevant borrower information about the ability to service debt. This information includes a review of current financial information, historic payment experience, credit documentation, relevant public information and other factors, as determined by credit underwriting guidelines. Through its analysis of individual borrowers, the Company classifies each loan as to credit risk. All loans considered non-homogeneous, specifically those that are deemed commercial and industrial or commercial real estate loans, are subject to review by the Company, regardless of loan size. In practice, these loans are reviewed continually and changes to the risk rating, if necessary, occur on a quarterly basis. Loans that are considered homogeneous, or those which fall into the categories of one-to-four family loans or into consumer loans, are not individually rated annually. The payment performance of the homogeneous loans serves as the clear credit indicator of classification into the categories of pass-rated loans or into substandard, non-accrual loans. Homogeneous loans that are less than 90 days past due are generally reported as pass-rated loans, unless related to a rated commercial and industrial or commercial real estate loan. Homogeneous loans which are greater than 90 days past due are placed on non-accrual and rated substandard. Payment performance indicators are based on performance through September 30, 2012. The Company uses the following definitions for adverse risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that requires close attention. If left unattended, the potential weaknesses may result in further deterioration in the repayment prospects of the loan or of the institution’s credit position at a future date.

Substandard. Loans classified as substandard are protected inadequately by the current financial means of the borrower or through the liquidation of collateral pledged. Loans classified as substandard have a well-defined weakness and without substantial intervention, there is a distinct possibility that the Company may incur a loss. As a matter of practice, if the Company feels that a total loss is imminent, it

designates nearly all of these loans to charge off. Accordingly, the Company uses the loan classification of doubtful (as defined hereafter), sparingly.

Doubtful. Loans classified as doubtful have all of the inherent weaknesses of those loans classified as substandard with the added structural weakness that the collection in full is highly unlikely. As such, this category is used sparingly by the Company.

As of September 30, 2012, and based on the most recent analysis performed by the Company, the risk category of loans by class of loan was as follows:

			Special
	Pass(1)		Mention		Substandard		Doubtful		Total
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	56,662,038	$	0	$	2,567,550	$	0	$	59,229,588
1-4 Family Non-Owner Occupied		30,693,293		1,108,211		2,462,498		0		34,264,002
1-4 Family Second Mortgage		27,762,887		205,384		728,464		0		28,696,735
Home Equity Lines of Credit		62,045,109		49,585		2,763,839		0		64,858,533
Home Equity Investment Lines of Credit		4,312,353		200,846		748,505		0		5,261,704
One-to-Four Family Construction Loans:
1-4 Family Construction		1,030,832		0		308,927		0		1,339,759
1-4 Family Construction Models/Speculative		93,964		0		526,364		0		620,328
Multi-Family Loans:
Multi-Family		61,448,233		1,112,062		5,720		0		62,566,015
Multi-Family Second Mortgage		144,588		0		0		0		144,588
Multi-Family Construction		108,303		0		0		0		108,303
Commercial Real Estate Loans:
Commercial		182,950,964		3,389,855		11,455,022		0		197,795,841
Commercial Second Mortgage		4,794,184		0		0		0		4,794,184
Commercial Lines of Credit		19,724,964		0		2,905,781		0		22,630,745
Commercial Construction		8,471,587		0		644,808		0		9,116,395
Commercial and Industrial Loans		36,356,799		87,877		1,068,721		0		37,513,397
Land Loans:
Lot Loans		4,901,956		38,650		4,395,212		0		9,335,818
Acquisition and Development Loans		17,367,339		0		1,579,625		0		18,946,964
Consumer Loans		2,099,017		0		0		0		2,099,017
Total	$	520,968,410	$	6,192,470	$	32,161,036	$	0	$	559,321,916

(1) There are $2.1 million in non-homogeneous loans which are subject to individual review for risk rating included in the pass risk category based on payment status as they have not yet been individually reviewed.

As of June 30, 2012, and based on the most recent analysis performed by the Company, the risk category of loans by class of loan was as follows:

			Special
	Pass(1)		Mention		Substandard		Doubtful		Total
One-to-Four Family Loans:
1-4 Family Owner Occupied	$	55,526,297	$	0	$	3,150,598	$	—	$	58,676,895
1-4 Family Non-Owner Occupied		30,621,009		1,117,122		2,590,969		—		34,329,100
1-4 Family Second Mortgage		28,147,735		206,701		814,384		—		29,168,820
Home Equity Lines of Credit		63,030,206		49,585		2,753,893		—		65,833,684
Home Equity Investment Lines of Credit		4,828,651		200,886		609,872		—		5,639,409
One-to-Four Family Construction Loans:
1-4 Family Construction		513,466		0		0		—		513,466
1-4 Family Construction Models/Speculative		724,177		0		882,124		—		1,606,301
Multi-Family Loans:
Multi-Family		52,448,152		1,124,756		324,974		—		53,897,882
Multi-Family Second Mortgage		145,476		0		0		—		145,476
Multi-Family Construction		5,368,866		0		0		—		5,368,866
Commercial Real Estate Loans:
Commercial		183,422,738		3,100,295		11,538,141		—		198,061,174
Commercial Second Mortgage		5,743,721		0		0		—		5,743,721
Commercial Lines of Credit		19,401,017		0		2,909,112		—		22,310,129
Commercial Construction		7,079,104		0		644,807		—		7,723,911
Commercial and Industrial Loans		34,042,381		91,634		1,268,721		—		35,402,736
Land Loans:
Lot Loans		8,217,784		39,374		3,820,138		—		12,077,296
Acquisition and Development Loans		16,486,141		0		2,585,076		—		19,071,217
Consumer Loans		2,110,297		0		0		—		2,110,297
Total	$	517,857,218	$	5,930,353	$	33,892,809	$	—	$	557,680,380

(1) There are $2.6 million in non-homogeneous loans which are subject to individual review for risk rating included in the pass risk category based on payment status as they have not yet been individually reviewed.