-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KD9lCASi8eFp+FJ0QehoCxuyIGGXAG3lQ3w3WE412obsfEqufgCf4ddG/Lcra2TL vs9gRvRB7wijofBpHK34lQ== 0000909654-06-000960.txt : 20070119 0000909654-06-000960.hdr.sgml : 20070119 20060428142907 ACCESSION NUMBER: 0000909654-06-000960 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060428 DATE AS OF CHANGE: 20070118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JEFFERSON BANCSHARES INC CENTRAL INDEX KEY: 0001222915 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 450508261 STATE OF INCORPORATION: TN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50347 FILM NUMBER: 06789055 BUSINESS ADDRESS: STREET 1: JEFFERSON FEDERAL SAVINGS & LOAN ASSOC STREET 2: 120 EVANS AVENUE CITY: MORRISTOWN STATE: TN ZIP: 37814 BUSINESS PHONE: 4235868421 MAIL ADDRESS: STREET 1: JEFFERSON FEDERAL SAVINGS & LOAN ASSOC STREET 2: 120 EVANS AVENUE CITY: MORRISTOWN STATE: TN ZIP: 37814 8-K 1 jefferson8kapril28-06.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) April 28, 2006 -------------- JEFFERSON BANCSHARES, INC. -------------------------- (Exact name of registrant as specified in its charter) Tennessee 0-50347 45-0508261 --------- --------- ---------- (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 120 Evans Avenue, Morristown, Tennessee 37814 --------------------------------------- ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (423) 586-8421 -------------- Not Applicable -------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION --------------------------------------------- On April 28, 2006, Jefferson Bancshares, Inc., the holding company for Jefferson Federal Bank, announced its financial results for the quarter ended March 31, 2006. The press release announcing financial results for the quarter ended March 31, 2006 is included as Exhibit 99.1 and incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- (a) Financial Statements of Businesses Acquired: Not applicable (b) Pro Forma Financial Information: Not applicable (c) Shell Company Transactions: Not applicable (d) Exhibits Number Description ------ ----------- 99.1 Earnings Press Release Dated April 28, 2006 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. JEFFERSON BANCSHARES, INC. Dated: April 28, 2006 By: /s/ Anderson L. Smith ------------------------------------- Anderson L. Smith President and Chief Executive Officer 3 EX-99.1 2 jefferson8kapril28-06ex99.txt Press Release JEFFERSON BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2006 Morristown, Tennessee -- (April 28, 2006) - Jefferson Bancshares, Inc. (Nasdaq: JFBI), the holding company for Jefferson Federal Bank, announced net income of $476,000, or $0.08 per diluted share, for the quarter ended March 31, 2006 compared to net income of $862,000, or $0.12 per diluted share, for the quarter ended March 31, 2005. For the nine months ended March 31, 2006, net income was $2.0 million, or $0.31 per diluted share, compared to $2.7 million, or $0.36 per diluted share, for the comparable period in 2005. The decline in net income for the three-month period ended March 31, 2006 was primarily the result of an increase in noninterest expense, combined with a decrease in net interest income. The increase in noninterest expense was the result of our expansion activities, as well as our adoption of Financial Accounting Standards Board's ("FASB") Statement 123R, which requires the expensing of stock options. The decline in net income for the nine-month period ended March 31, 2006 was primarily the result of an increase in noninterest expense, partially offset by an increase in noninterest income. Annualized return on average assets and return on average equity for the nine months ended March 31, 2006 were 0.86% and 3.33%, respectively, compared to 1.18% and 4.01% for the corresponding 2005 period. Anderson L. Smith, President and CEO, commented, "We are pleased that construction of our Merchants Greene office in Hamblen County, Tennessee is near completion and scheduled to open in May 2006. Our Farragut office in Knox County, Tennessee is also near completion and scheduled to open in June 2006. In addition, we plan to break ground in June 2006 for our second Knoxville location in the Bearden Hill area. While the costs related to our investment in new facilities and human resources is a short-term detractor to net earnings, we anticipate that these investments will position our company for continued growth and profitability. We continue to experience significant growth in our loan portfolio while maintaining positive trends in asset quality." Net interest income decreased $96,000 to $2.7 million for the quarter ended March 31, 2006 from the corresponding quarter in 2005. The interest rate spread and net interest margin for the quarter ended March 31, 2006 were 3.04% and 3.80%, respectively, compared to 3.36% and 4.02% for the same period in 2005. Interest income increased $605,000, or 15.1%, to $4.6 million for the three-month period ended March 31, 2006 primarily due to growth in average earning assets and an increase in short-term interest rates. Interest expense increased $701,000, or 60.2%, to $1.9 million for the quarter ended March 31, 2006, as a result of an increase in deposit rates and an increase in Federal Home Loan Bank ("FHLB") borrowings. The average rate paid on interest-bearing liabilities increased 103 basis points to 3.34% for the three months ended March 31, 2006. For the nine months ended March 31, 2006, net interest income decreased $20,000, to $8.4 million. The interest rate spread and net interest margin for the nine months ended March 31, 2006 were 3.24% and 3.96%, respectively, compared to 3.25% and 3.88% for the same period in 2005. Interest income increased $1.4 million, or 11.9%, to $13.2 million for the nine-month period ended March 31, 2006 primarily due to an increase of 79 basis points in the yield on average earning assets combined with changes in the asset mix. Interest expense increased $1.4 million, or 42.3%, to $4.8 million for the nine months ended March 31, 2006, as a result of an increase in deposit rates and an increase in FHLB borrowings. Noninterest income decreased $14,000, or 4.3%, to $313,000 for the quarter ended March 31, 2006 and increased $393,000, or 49.8%, to $1.2 million for the nine months ended March 31, 2006 compared to the corresponding periods in 2005. Mortgage origination fee income accounted for the largest increase in noninterest income with $129,000 and $446,000 for the three- and nine-month periods ended March 31, 2006, respectively, compared to $40,000 for both the three- and nine-periods in 2005. Noninterest expense increased $371,000, or 19.4%, to $2.3 million for the three-month period ended March 31, 2006, primarily due to an increase in compensation and benefits expense. Compensation and benefits expense increased $413,000, or 38.6%, to $1.5 million for the three-month period ended March 31, 2006, primarily due to staff additions for our future branch office in Morristown, Tennessee and two future branch offices in Knoxville, Tennessee that are anticipated to open during 2006 and early 2007. On July 1, 2005, we adopted FASB Statement No.123R, "Share-Based Payment" which requires the expensing of stock options at fair value. Accordingly, for the three months ended March 31, 2006, compensation and benefits expense included $66,000 related to the expensing of stock options. For the nine months ended March 31, 2006, noninterest expense increased $1.4 million, or 27.0%, to $6.4 million due primarily to an increase in compensation and benefits expense. Compensation and benefits expense increased $1.1 million, or 39.4%, to $4.1 million for the nine months ended March 31, 2006 due to staff additions and stock option expensing. Compensation and benefits expense related to stock option expense totaled $199,000 for the nine months ended March 31, 2006. There were 95 full-time employees at March 31, 2006 compared to 75 full-time employees at March 31, 2005. Nonperforming assets totaled $223,000, or 0.07% of total assets at March 31, 2006, compared to $1.5 million, or 0.50% of total assets at March 31, 2005. Annualized net charge-offs for the nine months ended March 31, 2006 were 0.06% of average loans, compared to 0.09% for the same period in 2005. The allowance for loan losses was $2.2 million, or 0.90% of total gross loans, at March 31, 2006 compared to $2.3 million, or 1.18% of total gross loans, at March 31, 2005. There were no additions to the allowance for loan losses for either nine-month period. Total assets at March 31, 2006 were $312.4 million compared to $295.0 million at June 30, 2005. During the nine months ended March 31, 2006, net loans receivable increased $32.4 million, or 15.6%, to $240.9 million, due to growth in real estate and consumer loans. Investment securities decreased $13.5 million, or 25.2%, to $39.9 million at March 31, 2006, compared to $53.4 million at June 30, 2005 due primarily to sales of investment securities. Proceeds from the sale of investment securities were used to fund stock repurchases and to fund growth in the loan portfolio. Total deposits increased $2.2 million, to $196.9 million at March 31, 2006 as a result of a $4.9 million increase in transaction accounts, more than offsetting a $2.7 million decline in certificates of deposit. Transaction accounts represented 39.8% of total deposits at March 31, 2006 compared to 37.8% at June 30, 2005 and 35.9% at March 31, 2005. FHLB advances were $39.0 million at March 31, 2006, an increase of $22.0 million, compared to $17.0 million at June 30, 2005. We utilize advances from the FHLB as a funding source for loan growth and to manage daily liquidity needs. Total equity decreased $6.5 million, or 8.0%, to $75.5 million at March 31, 2006 due to a combination of factors, including the repurchase of shares in the amount of $8.1 million and dividend payments of $1.2 million, more than offsetting net income of $2.0 million. Stock repurchases for the three months ended March 31, 2006 totaled 210,695 shares at an average cost of $13.44 per share. On February 24, 2006, the Company announced its third stock repurchase program in which 690,261 shares, or 10% of the Company's outstanding common stock, may be repurchased. At March 31, 2006, 655,634 shares remained eligible for repurchase under the current stock repurchase program. Jefferson Bancshares, Inc. is the holding company for Jefferson Federal Bank, a federally-chartered stock thrift institution headquartered in Morristown, Tennessee. Jefferson Federal is a community oriented financial institution offering traditional financial services with offices in Hamblen and Knox County. The Company's stock is listed on the NASDAQ National Market under the symbol JFBI. More information about Jefferson Bancshares and Jefferson Federal Bank can be found at its website: www.jeffersonfederal.com. This news release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, and changes in the quality or composition of the Company's loan or investment portfolios. Additionally, other risks and uncertainties may be described in the Company's quarterly reports on Form 10-Q and its annual report on Form 10-K, each filed with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company assumes no obligation to update any forward-looking statements.
JEFFERSON BANCSHARES, INC. AT AT MARCH 31, 2006 JUNE 30, 2005 -------------------- ------------------- (Dollars in thousands) FINANCIAL CONDITION DATA: Total assets $ 312,361 $ 295,041 Loans receivable, net 240,860 208,438 Cash and cash equivalents, and interest-bearing deposits 8,759 11,027 Investment securities 39,902 53,366 Deposits 196,879 194,706 Borrowings 39,000 17,000 Stockholders' equity 75,494 82,028
THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31, 2006 2005 2006 2005 -------------------- ------------------- ------------------- ------------------ (Dollars in thousands, except per share data) OPERATING DATA: Interest income $ 4,605 $ 4,000 $ 13,191 $ 11,786 Interest expense 1,866 1,165 4,797 3,372 Net interest income 2,739 2,835 8,394 8,414 Provision for loan losses - - - - Net interest income after provision for loan losses 2,739 2,835 8,394 8,414 Noninterest income 313 327 1,182 789 Noninterest expense 2,286 1,915 6,448 5,079 Earnings before income taxes 766 1,247 3,128 4,124 Total income taxes 290 385 1,157 1,428 Net earnings 476 862 1,971 2,696 SHARE DATA: Earnings per share, basic $ 0.08 $ 0.12 $ 0.31 $ 0.36 Earnings per share, diluted $ 0.08 $ 0.12 $ 0.31 $ 0.36 Dividends per share $ 0.06 $ 0.05 $ 0.18 $ 0.15 Weighted average shares: Basic 6,227,668 7,171,692 6,422,164 7,443,856 Diluted 6,248,104 7,188,557 6,440,357 7,462,315
THREE MONTHS ENDED MARCH 31, NINE MONTHS ENDED MARCH 31, 2006 2005 2006 2005 -------------------- ------------------- ------------------- ------------------ (Dollars in thousands) ALLOWANCE FOR LOAN LOSSES: Allowance at beginning of period $ 2,234 $ 2,388 $ 2,293 $ 2,479 -------------------- ------------------- ------------------- ------------------ Provision for loan losses - - - - Recoveries 49 66 125 252 Charge-offs (92) (116) (227) (393) -------------------- ------------------- ------------------- ------------------ Net Charge-offs (43) (50) (102) (141) -------------------- ------------------- ------------------- ------------------ Allowance at end of period $ 2,191 $ 2,338 $ 2,191 $ 2,338 ==================== =================== =================== ================== Net charge-offs to average outstanding loans during the period, annualized 0.07% 0.10% 0.06% 0.09%
AT AT AT MARCH 31, 2006 JUNE 30, 2005 MARCH 31, 2005 -------------------- ------------------- ------------------- (Dollars in thousands) NONPERFORMING ASSETS: Nonaccrual loans: Real estate $ 62 $ 426 $ 296 Commercial business - - 46 Consumer - - - -------------------- ------------------- ------------------- Total 62 426 342 -------------------- ------------------- ------------------- Real estate owned 161 914 1,143 Other nonperforming assets - - - -------------------- ------------------- ------------------- Total nonperforming assets $ 223 $ 1,340 $ 1,485 ==================== =================== ===================
NINE MONTHS ENDED YEAR ENDED MARCH 31, 2006 JUNE 30, 2005 -------------------- ------------------- PERFORMANCE RATIOS: Return on average assets 0.86% 1.14% Return on average equity 3.33% 3.92% Interest rate spread 3.24% 3.24% Net interest margin 3.96% 3.88% Efficiency ratio 66.71% 57.17% Average interest-earning assets to average interest-bearing liabilities 131.64% 139.49% ASSET QUALITY RATIOS: Allowance for loan losses as a percent of total gross loans 0.90% 1.09% Allowance for loan losses as a percent of nonperforming loans 3533.87% 538.26% Nonperforming loans as a percent of total loans 0.03% 0.20% Nonperforming assets as a percent of total assets 0.07% 0.45%
Contacts: Jefferson Bancshares, Inc. Anderson L. Smith 423-586-8421 or Jane P. Hutton 423-586-8421 -----END PRIVACY-ENHANCED MESSAGE-----