HR Block 2008 Annual Report Download - page 60

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DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY; INTEREST RATES AND INTEREST
DIFFERENTIAL – The following table presents average balance data and interest income and expense data for our
banking operations, as well as the related interest yields and rates for fiscal years 2008 and 2007:
Average
Balance
Interest
Income/
Expense
Average
Yield/Cost
Average
Balance
Interest
Income/
Expense
Average
Yield/Cost
April 30, 2008 2007
(dollars in 000s)
Interest-earning assets:
Loans, net
(1)
$ 1,221,103 $ 120,233 9.85% $ 746,387 $ 50,767 6.80%
Available-for-sale investment securities 36,055 1,847 5.12% 24,405 1,389 5.69%
Federal funds sold 153,332 4,981 3.25% 91,975 4,747 5.16%
FHLB stock 6,876 323 4.70% 970 20 2.11%
1,417,366 $ 127,384 8.99% 863,737 $ 56,923 6.59%
Non-interest-earning assets 25,502 24,583
Total HRB Bank assets $ 1,442,868 $ 888,320
Interest-bearing liabilities:
Customer deposits $ 904,836 $ 42,878 4.74% $ 596,104 $ 32,128 5.39%
FHLB borrowing 117,743 6,008 5.10% 16,055 832 5.18%
1,022,579 $ 48,886 4.78% 612,159 $ 32,960 5.38%
Non-interest-bearing liabilities 210,767 110,610
Total liabilities 1,233,346 722,769
Total shareholders’ equity 209,522 165,551
Total liabilities and shareholders’ equity $ 1,442,868 $ 888,320
Net yield on interest-earning assets
(1)
$ 78,498 5.54% $ 23,963 2.77%
(1)
Excludes revenue sharing with Tax Services on Emerald Advance activities.
The following table presents the rate/volume variance in interest income and expense for fiscal year 2008
compared to fiscal year 2007:
Total Change in
Interest
Income/Expense
Change Due
to Rate/Volume
Change Due
to Rate
Change Due
to Volume
(in 000s)
Interest income:
Loans, net $ 69,466 $ 14,490 $ 23,027 $ 31,949
Available-for-sale investment securities 458 (63) (133) 654
Federal funds sold 234 (1,016) (1,659) 2,909
FHLB stock 303 153 25 125
$ 70,461 $ 13,564 $ 21,260 $ 35,637
Interest expense:
Customer deposits $ 10,750 $ (1,880) $ (3,004) $ 15,634
FHLB borrowing 5,176 (81) (13) 5,270
$ 15,926 $ (1,961) $ (3,017) $ 20,904
INVESTMENT PORTFOLIO –The following table presents the cost basis and fair value of HRB Bank’s investment
portfolio at April 30, 2008 and 2007:
Cost Basis Fair Value Cost Basis Fair Value
2008 2007April 30,
(in 000s)
Mortgage-backed securities $ 30,809 $ 29,401 $ 35,122 $ 35,084
Federal funds sold 9,938 9,938 53,946 53,946
FHLB stock 7,536 7,536 9,091 9,091
Other 3,500 2,809 3,500 3,500
$ 51,783 $ 49,684 $101,659 $101,621
40 H&R BLOCK 2008 Form 10K