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38 2014 Form 10-K | H&R Block, Inc.
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, 2014 2013
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) $ (1,811) $ (2,603) $ (584) $ 1,376 $ 1,560 $ 3,052 $ (60) $ (1,432)
AFS securities 2,713 222 1,102 1,389 2,613 147 300 2,166
Federal funds sold — — — — — (1) 1 —
FHLB stock 12 — 12 — (113) 50 (118) (45)
Cash & due from
banks (4) 3 69 (76) (205) 49 (146) (108)
$ 910 $ (2,378) $ 599 $ 2,689 $ 3,855 $ 3,297 $ (23) $ 581
Interest expense:
Customer deposits $ (3,551) $ 511 $ (3,085) $ (977) $ (1,075) $ (52) $ (1,286) $ 263
FHLB borrowings — — — — (572) 574 (573) (573)
$ (3,551) $ 511 $ (3,085) $ (977) $ (1,647) $ 522 $ (1,859) $ (310)
(1) Includes mortgage loans held for investment, EAs and credit cards. Non-accruing loans have been excluded.
INVESTMENT PORTFOLIO – The following table presents the cost basis and fair value of HRB Bank's investment
portfolio as of April 30, 2014, 2013 and 2012:
(in 000s)
As of April 30, 2014 2013 2012
Cost Basis Fair Value Cost Basis Fair Value Cost Basis Fair Value
Mortgage-backed securities $ 420,697 $ 423,495 $ 476,450 $ 482,378 $ 361,184 $ 366,683
Federal funds sold 1,156 1,156 1,169 1,169 1,586 1,586
FHLB stock 1,633 1,633 1,861 1,861 1,879 1,879
$ 423,486 $ 426,284 $ 479,480 $ 485,408 $ 364,649 $ 370,148
The following table shows the cost basis, scheduled maturities and average yields for HRB Bank's investment
portfolio as of April 30, 2014:
(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 $ 420,697 $ — — $ 420,697 2.08% $ 420,697 2.08%
Federal funds sold 1,156 1,156 0.10% — — 1,156 0.10%
FHLB stock 1,633 1,633 0.49% — — 1,633 0.49%
$ 423,486 $ 2,789 $ 420,697 $ 423,486