HR Block 2007 Annual Report Download - page 73

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INVESTMENT PORTFOLIO –The following table shows the cost basis, fair values, scheduled maturities, carrying values and current yields for
HRB Bank’s investment portfolio at April 30, 2007:
(dollars in 000s)
Less Than One Year One to Five Years After Five Years Total
Cost Fair Balance Average Balance Average Balance Average Balance Average
Basis Value Due Yield Due Yield Due Yield Due Yield
Mortgage-backed securities $35,122 $35,084 $ ––%$– –% $35,122 5.65% $35,122 5.65%
Federal funds sold 53,946 53,946 53,946 5.22% ––%– –%53,946 5.22%
FHLB stock 9,091 9,091 ––%– –%9,091 4.25% 9,091 4.25%
Trust preferred securities 3,500 3,500 ––%– –%3,500 6.40% 3,500 6.40%
$101,659 $101,621 $53,946 $–$47,713 $101,659
LOAN PORTFOLIO AND RELATED ALLOWANCE FOR CREDIT LOSSES –The following table shows the composition of HRB Bank’s mortgage
loan portfolio as of April 30, 2007 and the related contractual maturities:
(in 000s)
Maturity Dates
Value as of Within One to More than
April 30, 2007One Year Five Years Five Years
Residential real estate mortgages $1,350,612 $–$180 $1,350,432
Home equity lines of credit 280 ––280
$1,350,892 $–$180 $1,350,712
Fixed-rate loans $311,516 $–$180 $311,336
Adjustable-rate loans 1,039,376 ––1,039,376
$1,350,892 $–$180 $1,350,712
45 m
Non-accrual loans $22,909
Loans past due 90 days or more22,909
A rollforward of HRB Bank’s allowance for loan loss is as follows: DEPOSITS –The following table shows HRB Bank’s average deposit
balances and the average rate paid on those deposits for fiscal year
(dollars in 000s)
2007:
Balance at beginning of period $– (dollars in 000s)
Provision 3,622 Average Average
Recoveries –Balance Rate
Charge-offs (174) Money market and savings $509,915 5.46%
Balance at end of period $3,448 Interest-bearing checking accounts 75,077 4.96%
IRAs 10,534 5.05%
Ratio of net charge-offs to average loans outstanding during the
Certificates of deposit578 5.06%
year 0.02%
596,104 5.39%
Noninterest-bearing deposits 104,603
$700,707
RATIOS –The following table shows certain of HRB Bank’s key ratios
for fiscal year 2007:
Pretax returnon assets 2.60%
Pretax returnon equity 13.95%
Equity to assets ratio 11.59%
H&R BLOCK 2007 Form 10K