HR Block 2007 Annual Report Download - page 72

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2006. During fiscal year 2006, we contributed additional capital of From time to time in the ordinary course of business, we receive
$5.0 million to HRBFA. inquiries from governmental and self-regulatory agencies regarding the
The U.S., various state, local, provincial and foreign governments and applicability of Laws to our services and products. In response to past
some self-regulatory organizations have enacted statutes and inquiries, we have agreed to comply with such Laws, convinced the
ordinances, and/or adopted rules and regulations, regulating aspects of authorities that such Laws were not applicable or that compliance
our business. These aspects include, but are not limited to, commercial already exists, and/or modified our activities in the applicable
income tax return preparers, income tax courses, the electronic filing of jurisdiction to avoid the application of all or certain parts of such Laws.
income tax returns, the facilitation of RALs, loan originations and We believe that the past resolution of such inquiries and our ongoing
assistance in loan originations, mortgage lending, privacy, consumer compliance with Laws have not had a material adverse effect on our
protection, franchising, sales methods, brokers, broker-dealers and consolidated financial statements. We cannot predict what effect future
various aspects of securities transactions, financial planners, Laws, changes in interpretations of existing Laws, or the results of
investment advisers, banking, accountants and the accounting practice. future regulator inquiries with respect to the applicability of Laws may
We seek to determine the applicability of such statutes, ordinances, have on our consolidated financial statements. See additional
rules and regulations (collectively, ‘‘Laws’’) and comply with those discussion of legal matters in Item 3, ‘‘Legal Proceedings’’ and Item 8,
Laws. note 19 to our consolidated financial statements.
STATISTICAL DISCLOSURE BY BANK HOLDING COMPANIES
(dollars in 000s)
This section presents information required by the SEC’s Industry
Guide 3, ‘‘Statistical Disclosure by Bank Holding Companies.’’ The
Interest Average
Average Income/Yield/
tables in this section include HRB Bank information only, which
Balance Expense Cost
commenced operations during the current fiscal year and therefore,
Interest-earning assets:
only one year of data is presented.
Loans, net $746,387 $50,767 6.80%
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’
Available-for-sa le investment securities 24,405 1,389 5.69%
EQUITY; INTEREST RATES AND INTEREST DIFFERENTIAL –The
m44 Federal funds sold 91,975 4,747 5.16%
following table presents average balance data and interest income and
FHLB stock 970 20 2.11%
expense data for our banking operations, as well as the related interest
863,737 $56,923 6.59%
yields and rates for fiscal year 2007:
Noninterest-earning assets 24,583
Total HRB Bank assets $888,320
Interest-bearing liabilities:
Customer deposits $700,707 $32,128 4.59%
FHLB borrowing 16,055 832 5.18%
716,762 $32,960 4.60%
Non-interest-bearing liabilities 6,007
Total liabilities 722,769
Total shareholders’ equity 165,551
Total liabilities and stockholders’ equity $888,320
Net yield on interest-earning assets $23,963 2.70%
The maximum amount of FHLB advances outstanding during fiscal
year 2007 was $179.0 million.
H&R BLOCK 2007 Form 10K