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H&R Block 2013 Form 10-K 63
Information related to activities of our non-performing assets is as follows:
(in 000s)
For the year ended April 30, 2013 2012 2011
Average impaired loans:
Purchased from SCC $ 133,936 $ 211,867 $ 252,673
All other 25,425 33,940 37,082
$ 159,361 $ 245,807 $ 289,755
Interest income on impaired loans:
Purchased from SCC $3,825 $5,454 $5,795
All other 305 445 829
$4,130 $5,899 $6,624
Interest income on impaired loans recognized on a cash basis
on non-accrual status:
Purchased from SCC $3,746 $5,265 $5,567
All other 279 417 744
$4,025 $5,682 $6,311
As of April 30, 2013 and 2012, accrued interest receivable on mortgage loans held for investment totaled $1.3 million
and $1.6 million, respectively. As of April 30, 2013 and 2012, HRB Bank had interest-only mortgage loans in its
investment portfolio totaling $2.4 million and $2.7 million, respectively.
Activity related to our REO is as follows:
(in 000s)
Year ended April 30, 2013 2012 2011
Balance, beginning of the year $14,972 $19,532 $29,252
Additions 10,357 10,308 16,463
Sales (9,271) (11,976) (21,889)
Impairments (2,090) (2,892) (4,294)
Balance, end of the year $13,968 $14,972 $19,532
NOTE 5: INVESTMENTS
AVAILABLE-FOR-SALE – The amortized cost and fair value of securities classified as AFS are summarized below:
(in 000s)
As of April 30, 2013 2012
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1) Fair Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses (1) Fair Value
Short-term:
Municipal bonds $ — $ — $ — $ — $1,008 $ 29 $ — $ 1,037
Long-term:
Mortgage-backed
securities 476,450 6,592 (664)482,378 361,184 5,620 (121)366,683
Municipal bonds 4,178 320 — 4,498 4,236 396 —4,632
480,628 6,912 (664)486,876 365,420 6,016 (121)371,315
$ 480,628 $ 6,912 $(664) $ 486,876 $ 366,428 $ 6,045 $(121) $ 372,352
(1) As of April 30, 2013, we had no securities that had been in a continuous loss position for more than twelve months. As of April 30, 2012, mortgage-
backed securities with a cost of $8.1 million and gross unrealized losses of $21 thousand had been in a continuous loss position for more than
twelve months.