HR Block 2008 Annual Report Download - page 61

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The following table shows the cost basis, scheduled maturities and average yields for HRB Bank’s investment
portfolio at April 30, 2008:
Cost
Basis
Balance
Due
Average
Yield
Balance
Due
Average
Yield
Balance
Due
Average
Yield
Less Than One Year After Ten Years Total
(dollars in 000s)
Mortgage-backed securities $ 30,809 $ – – % $ 30,809 4.94% $ 30,809 4.94%
Federal funds sold 9,938 9,938 3.25% – – % 9,938 3.25%
FHLB stock 7,536 – – % 7,536 4.70% 7,536 4.70%
Other 3,500 – – % 3,500 6.20% 3,500 6.20%
$ 51,783 $ 9,938 $ 41,845 $ 51,783
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, 2008 and 2007, and information on
delinquent loans:
April 30. 2008 2007
(in 000s)
Residential real estate mortgages $ 1,004,283 $ 1,350,612
Home equity lines of credit 357 280
$ 1,004,640 $ 1,350,892
Non-accrual loans $ 110,759 $ 22,909
Loans past due 90 days or more 73,600 22,909
Of total loans outstanding at April 30, 2008, 71% were adjustable-rate loans and 29% were fixed-rate loans. A
rollforward of HRB Bank’s allowance for loss on mortgage loans is as follows:
Year Ended April 30, 2008 2007
(dollars in 000s)
Balance at beginning of the year $ 3,448 $–
Provision 42,004 3,622
Recoveries 999 –
Charge-offs (1,050) (174)
Balance at end of the year $ 45,401 $ 3,448
Ratio of net charge-offs to average loans outstanding during the year 0.09% 0.02%
DEPOSITS –The following table shows HRB Bank’s average deposit balances and the average rate paid on those
deposits for fiscal years 2008 and 2007:
Year Ended April 30,
Average
Balance
Average
Rate
Average
Balance
Average
Rate
2008 2007
(dollars in 000s)
Money market and savings $ 653,126 4.92% $ 509,915 5.46%
Interest-bearing checking accounts 141,328 4.31% 75,077 4.96%
IRAs 101,085 4.12% 10,534 5.05%
Certificates of deposit 9,297 5.45% 578 5.06%
904,836 4.74% 596,104 5.39%
Non-interest-bearing deposits 189,325 104,603
$ 1,094,161 $ 700,707
RATIOS –The following table shows certain of HRB bank’s key ratios for fiscal years 2008 and 2007:
Year Ended April 30, 2008 2007
Pretax return on assets 0.80% 2.60%
Net return on equity 3.32% 13.95%
Equity to assets ratio 12.80% 11.59%
H&R BLOCK 2008 Form 10K 41