HR Block 2009 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2009 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

A rollforward of HRB Bank’s allowance for loss on mortgage loans is as follows:
Year Ended April 30, 2009 2008 2007
(dollars in 000s)
Balance at beginning of the year $ 45,401 $ 3,448 $ –
Provision 63,897 42,004 3,622
Recoveries 54 999 –
Charge-offs (25,279) (1,050) (174)
Balance at end of the year $ 84,073 $ 45,401 $ 3,448
Ratio of net charge-offs to average loans outstanding during the year 2.80% 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 2009, 2008 and 2007:
Average
Balance
Average
Rate
Average
Balance
Average
Rate
Average
Balance
Average
Rate
Year Ended April 30, 2009 2008 2007
(dollars in 000s)
Money market and savings $ 467,864 1.37% $ 653,126 4.92% $ 509,915 5.46%
Interest-bearing checking accounts 13,579 2.25% 141,328 4.31% 75,077 4.96%
IRAs 289,814 1.27% 101,085 4.12% 10,534 5.05%
Certificates of deposit 91,815 3.98% 9,297 5.45% 578 5.06%
863,072 1.63% 904,836 4.74% 596,104 5.39%
Non-interest-bearing deposits 212,607 189,325 104,603
$ 1,075,679 $ 1,094,161 $ 700,707
RATIOS –The following table shows certain of HRB Bank’s key ratios for fiscal years 2009, 2008 and 2007:
Year Ended April 30, 2009 2008 2007
Pretax return on assets (1.03%) 0.80% 2.60%
Net return on equity (6.67%) 3.32% 13.95%
Equity to assets ratio 12.44% 12.80% 11.59%
SHORT-TERM BORROWINGS –The following table shows HRB Bank’s short-term borrowings for fiscal years
2009, 2008 and 2007:
Balance Rate Balance Rate Balance Rate
Year Ended April 30, 2009 2008 2007
(dollars in 000s)
Ending balance of FHLB advances $ 25,000 1.76% $ 25,000 2.64% $ 75,000 5.31%
Average balance of FHLB advances 103,885 4.92% 13,743 5.32% 16,055 5.18%
The maximum amount of FHLB advances outstanding during fiscal years 2009, 2008 and 2007 was
$129.0 million, $179.0 million and $179.0 million, respectively.
NEW ACCOUNTING PRONOUNCEMENTS
See Item 8, note 1 to our consolidated financial statements for a discussion of recently issued accounting
pronouncements.
H&R BLOCK 2009 Form 10K 35