HR Block 2009 Annual Report Download - page 37

institutions. We cannot predict whether any of these proposals will be enacted and, if enacted, the effect that it, or
any impending regulations, would have on our business, results of operations or financial condition.
STATISTICAL DISCLOSURE BY BANK HOLDING COMPANIES
This section presents information required by the SEC’s Industry Guide 3, “Statistical Disclosure by Bank Holding
Companies.” The tables in this section include HRB Bank information only.
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 2009, 2008 and 2007:
Average
Balance
Interest
Income/
Expense
Average
Yield/
Cost
Average
Balance
Interest
Income/
Expense
Average
Yield/
Cost
Average
Balance
Interest
Income/
Expense
Average
Yield/
Cost
Year Ended April 30, 2009 2008 2007
(dollars in 000s)
Interest-earning assets:
Mortgage loans, net $ 839,253 $ 46,396 5.14% $1,157,360 $ 74,895 6.40% $746,387 $50,767 6.80%
Federal funds sold 311,138 801 0.26% 153,332 4,981 3.25% 91,975 4,747 5.16%
Emerald Advance
(1)
133,252 91,019 35.31% 68,932 45,339 32.31% – – —%
Available-for-sale investment securities 29,500 791 2.68% 36,055 1,847 5.12% 24,405 1,389 5.69%
FHLB stock 6,557 127 1.93% 6,876 322 4.70% 970 24 2.47%
Cash and due from banks 12,474 123 0.99% – – –% – – –%
1,332,174 $139,257 10.45% 1,422,555 $127,384 8.95% 863,737 $56,927 6.59%
Non-interest-earning assets 71,759 20,313 24,583
Total HRB Bank assets $1,403,933 $1,442,868 $888,320
Interest-bearing liabilities:
Customer deposits $ 863,072 $ 14,069 1.63% $ 904,836 $ 42,878 4.74% $596,104 $32,128 5.39%
FHLB borrowing 103,885 5,113 4.92% 117,743 6,008 5.10% 16,055 836 5.21%
966,957 $ 19,182 1.98% 1,022,579 $ 48,886 4.78% 612,159 $32,964 5.38%
Non-interest-bearing liabilities 230,271 210,767 110,610
Total liabilities 1,197,228 1,233,346 722,769
Total shareholders’ equity 206,705 209,522 165,551
Total liabilities and shareholders’ equity $1,403,933 $1,442,868 $888,320
Net yield on interest-earning assets
(1)
$120,075 9.06% $ 78,498 5.54% $23,963 2.77%
(1)
Includes all interest income related to Emerald Advance activities. Amounts recognized as interest income also include certain fees,
which are amortized into interest income over the life of the loan, of $44.0 million and $23.1 million for fiscal years 2009 and 2008,
respectively.
The following table presents the rate/volume variance in interest income and expense for the last two fiscal
years:
Total Change
in Interest
Income/Expense
Change
Due to
Rate/Volume
Change
Due to
Rate
Change
Due to
Volume
Total Change
in Interest
Income/Expense
Change
Due to
Rate/Volume
Change
Due to
Rate
Change
Due to
Volume
Year Ended April 30, 2009 2008
(in 000s)
Interest income:
Loans, net
(1)
$ 17,182 $ (11,253) $ 53,654 $ (25,219) $ 69,466 $ 14,490 $ 23,027 $ 31,949
Available-for-sale
investment securities (1,056) 160 (881) (335) 458 (63) (133) 654
Federal funds sold (4,180) (4,720) (4,586) 5,126 234 (1,016) (1,659) 2,909
FHLB stock (196) 9 (190) (15) 303 153 25 125
Cash & due from banks 123 123 – – ––––
$ 11,873 $ (15,681) $ 47,997 $ (20,443) $ 70,461 $ 13,564 $ 21,260 $ 35,637
Interest expense:
Customer deposits $ (28,809) $ 1,298 $ (28,128) $ (1,979) $ 10,750 $ (1,880) $ (3,004) $ 15,634
FHLB borrowings (895) 25 (213) (707) 5,176 (81) (13) 5,270
$ (29,704) $ 1,323 $ (28,341) $ (2,686) $ 15,926 $ (1,961) $ (3,017) $ 20,904
(1)
Non-accruing loans have been excluded from the analysis above.
H&R BLOCK 2009 Form 10K 33