HR Block 2012 Annual Report Download - page 45

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The following table presents the rate/volume variance in interest income and expense for the last two fiscal
years:
(in 000s)
Year ended April 30, 2012 2011
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
Interest income:
Loans, net (1) $ (69,700) $ (46,549) $ (5) $ (23,146) $ 9,225 $ 4,485 $ (1,211) $ 5,951
Available-for-sale
investment securities 4,004 2,027 198 1,779 (7) (2) 16 (21)
Federal funds sold (2) – (2) – (6) (1) 1 (6)
FHLB stock (58) (15) 35 (78) 52 (8) 73 (13)
Cash & due from banks (521) (25) – (496) 362 40 (128) 450
$ (66,277) $ (44,562) $ 226 $ (21,941) $ 9,626 $ 4,514 $ (1,249) $ 6,361
Interest expense:
Customer deposits $ (1,753) $ (102) $(141) $ (1,510) $ (1,686) $ (264) $ 56 $ (1,478)
FHLB borrowings (954) (155) 225 (1,024) (471) (22) 81 (530)
$ (2,707) $ (257) $ 84 $ (2,534) $ (2,157) $ (286) $ 137 $ (2,008)
(1) Includes mortgage loans held for investment and EAs. 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, 2012, 2011 and 2010:
(in 000s)
As of April 30, 2012 2011 2010
Cost Basis Fair Value Cost Basis Fair Value Cost Basis Fair Value
Mortgage-backed securities $ 361,184 $ 366,683 $ 157,970 $ 158,177 $ 23,026 $ 23,016
Federal funds sold 1,586 1,586 8,727 8,727 2,338 2,338
FHLB stock 1,879 1,879 3,315 3,315 6,033 6,033
Trust preferred security ––– – 1,854 31
$ 364,649 $ 370,148 $ 170,012 $ 170,219 $ 33,251 $ 31,418
The following table shows the cost basis, scheduled maturities and average yields for HRB Bank’s investment
portfolio at April 30, 2012:
(dollars in 000s)
Less Than One Year After Ten Years Total
Cost
Basis
Balance
Due
Weighted
Average
Yield
Balance
Due
Weighted
Average
Yield
Balance
Due
Weighted
Average
Yield
Mortgage-backed securities $ 361,184 $ – –% $ 361,184 1.67% $ 361,184 1.67%
Federal funds sold 1,586 1,586 0.04% – –% 1,586 0.04%
FHLB stock 1,879 1,879 3.47% – –% 1,879 3.47%
$ 364,649 $ 3,465 $ 361,184 $ 364,649
H&R BLOCK 2012 Form 10K
31