HR Block 2011 Annual Report Download - page 42

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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 2011, 2010 and 2009:
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, 2011 2010 2009
(dollars in 000s)
Interest-earning assets:
Mortgage loans, net $ 545,052 $ 24,693 4.53% $ 677,115 $ 31,877 4.12% $ 839,253 $ 46,396 5.14%
Federal funds sold 2,649 3 0.10% 9,471 9 0.09% 311,138 801 0.26%
Emerald Advance
(1)
141,127 94,300 35.21% 106,093 77,891 35.21% 133,252 91,019 35.31%
Available-for-sale investment securities 22,243 174 0.78% 25,144 181 0.71% 29,500 791 2.68%
FHLB stock 5,953 171 2.88% 6,703 119 1.77% 6,557 127 1.93%
Cash and due from banks 930,666 2,338 0.25% 747,504 1,976 0.26% 12,474 123 0.99%
1,647,690 $121,679 7.38% 1,572,030 $112,053 7.00% 1,332,174 $139,257 10.45%
Non-interest-earning assets 57,899 94,499 71,759
Total HRB Bank assets $1,705,589 $1,666,529 $1,403,933
Interest-bearing liabilities:
Customer deposits $ 830,597 $ 8,488 1.02% $1,019,664 $ 10,174 1.00% $ 863,072 $ 14,069 1.63%
FHLB borrowing 72,534 1,526 2.10% 98,767 1,997 2.02% 103,885 5,113 4.92%
903,131 $ 10,014 1.11% 1,118,431 $ 12,171 1.09% 966,957 $ 19,182 1.98%
Non-interest-bearing liabilities 366,666 267,159 230,271
Total liabilities 1,269,797 1,385,590 1,197,228
Total shareholders’ equity 435,792 280,939 206,705
Total liabilities and shareholders’ equity $1,705,589 $1,666,529 $1,403,933
Net yield on interest-earning assets
(1)
$111,665 6.78% $ 99,882 6.23% $120,075 9.06%
(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 $48.5 million, $39.2 million and $44.0 million for fiscal years 2011,
2010 and 2009, 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, 2011 2010
(in 000s)
Interest income:
Loans, net
(1)
$ 9,225 $ 4,485 $ (1,211) $ 5,951 $ (27,646) $ 1,233 $ (8,192) $ (20,687)
Available-for-sale investment
securities (7) (2) 16 (21) (611) 86 (580) (117)
Federal funds sold (6) (1) 1 (6) (792) 500 (515) (777)
FHLB stock 52 (8) 73 (13) (8) — (11) 3
Cash & due from banks 362 40 (128) 450 1,853 (5,305) (90) 7,248
$ 9,626 $ 4,514 $ (1,249) $ 6,361 $ (27,204) $ (3,486) $ (9,388) $ (14,330)
Interest expense:
Customer deposits $ (1,686) $ (264) $ 56 $ (1,478) $ (3,895) $ (573) $ (5,457) $ 2,135
FHLB borrowings (471) (22) 81 (530) (3,116) 149 (3,013) (252)
$ (2,157) $ (286) $ 137 $ (2,008) $ (7,011) $ (424) $ (8,470) $ 1,883
(1)
Non-accruing loans have been excluded.
INVESTMENT PORTFOLIO –The following table presents the cost basis and fair value of HRB Bank’s
investment portfolio at April 30, 2011, 2010 and 2009:
Cost Basis Fair Value Cost Basis Fair Value Cost Basis Fair Value
April 30, 2011 2010 2009
(in 000s)
Mortgage-backed securities $ 157,970 $ 158,177 $ 23,026 $ 23,016 $ 27,466 $ 26,793
Federal funds sold 8,727 8,727 2,338 2,338 157,326 157,326
FHLB stock 3,315 3,315 6,033 6,033 6,730 6,730
Trust preferred security ––1,854 31 3,454 292
$ 170,012 $ 170,219 $ 33,251 $ 31,418 $ 194,976 $ 191,141
30 H&R BLOCK 2011 Form 10K