-----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, WSFO5L5CE8zULQzmFOM2lVxd4YrZfpN8wqG/DvT6qYsP/9aAudygdQhzAHTtOqaC SZs1RfQLFsYCK7R0kAfq7w== 0000909654-06-001706.txt : 20070119 0000909654-06-001706.hdr.sgml : 20070119 20060728164151 ACCESSION NUMBER: 0000909654-06-001706 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060728 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: 06988533 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 jefferson8kjuly28-06.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) July 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 July 28, 2006, Jefferson Bancshares, Inc., the holding company for Jefferson Federal Bank, announced its financial results for the quarter and year ended June 30, 2006. The press release announcing financial results for the quarter and year ended June 30, 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 July 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: July 28, 2006 By: /s/ Anderson L. Smith ----------------------------- Anderson L. Smith President and Chief Executive Officer 3 EX-99.1 2 jefferson8kjuly28-06ex99.txt JEFFERSON BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2006 Morristown, Tennessee -- (July 28, 2006) - Jefferson Bancshares, Inc. (Nasdaq: JFBI), the holding company for Jefferson Federal Bank, announced net income of $359,000, or $0.06 per diluted share, for the quarter ended June 30, 2006 compared to net income of $754,000, or $0.11 per diluted share, for the quarter ended June 30, 2005. For the year ended June 30, 2006, net income was $2.3 million, or $0.37 per diluted share, compared to $3.5 million, or $0.47 per diluted share, for the comparable period in 2005. The decline in net income for the three-month period ended June 30, 2006 was primarily the result of a loss on sale of investment securities, combined with an increase in noninterest expense. During the quarter ended June 30, 2006, investment securities were sold in response to liquidity and funding objectives. The increase in noninterest expense was the result of our expansion activities, as well as our adoption of Financial Accounting Standards Board ("FASB") Statement 123R, which requires the expensing of stock options. The decline in net income for the year ended June 30, 2006 was primarily the result of an increase in noninterest expense, partially offset by an increase in noninterest income. Return on average assets and return on average equity for the year ended June 30, 2006 were 0.75% and 2.99%, respectively, compared to 1.14% and 3.92% for the corresponding 2005 period. Anderson L. Smith, President and CEO, commented, "With the completion and opening of two new offices in Hamblen and Knox counties, we look forward to the prospects of developing new customer relationships, and the asset growth and profitability planned for each location. We are pleased with the early results from both locations. Our second Knox county location is now underway with an anticipated completion toward the middle of the second quarter in 2007. Improvements in asset quality coupled with strong growth in earning assets continue to provide excellent support for our expansion activities." Net interest income increased $37,000 to $2.8 million for the quarter ended June 30, 2006 from the corresponding quarter in 2005. The interest rate spread and net interest margin for the quarter ended June 30, 2006 were 2.95% and 3.71%, respectively, compared to 3.22% and 3.89% for the corresponding period in 2005. Interest income increased $907,000, or 22.7%, to $4.9 million for the three-month period ended June 30, 2006 primarily due to growth in average earning assets and an increase in short-term interest rates. The average yield earned on interest-earning assets increased 87 basis points to 6.58% for the three months ended June 30, 2006. Interest expense increased $870,000, or 68.6%, to $2.1 million for the quarter ended June 30, 2006, primarily 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 115 basis points to 3.63% for the three months ended June 30, 2006. For the year ended June 30, 2006, net interest income increased $17,000, to $11.2 million. The interest rate spread and net interest margin for the year ended June 30, 2006 were 3.16% and 3.89%, respectively, compared to 3.24% and 3.88% for the corresponding period in 2005. Interest income increased $2.3 million, or 14.7%, to $18.1 million for the year ended June 30, 2006 primarily due to an increase in the yield on average earning assets combined with changes in the asset mix. Interest expense increased $2.3 million, or 49.5%, to $6.9 million for the year ended June 30, 2006, primarily as a result of an increase in deposit rates and an increase in FHLB borrowings. As a result of continued improvement in asset quality, the provision for loan losses for the quarter and year ended 2006 was a recovery of $68,000, compared to no provision for fiscal 2005. Nonperforming assets totaled $435,000, or 0.13% of total assets at June 30, 2006, compared to $1.3 million, or 0.45% of total assets at June 30, 2005. Net charge-offs for fiscal 2006 were 0.02% of average loans, compared to 0.09% for fiscal 2005. The allowance for loan losses was $2.2 million, or 0.85% of total gross loans, at June 30, 2006 compared to $2.3 million, or 1.09% of total gross loans, at June 30, 2005. For the three months ended June 30, 2006, the Bank recorded a net recovery of $49,000 compared to net charge-offs of $45,000 for the comparable period in 2005. For the year ended June 30, 2006, net charge-offs were $53,000 compared to $186,000 for 2005. Noninterest income decreased $222,000, or 53.5%, to $193,000 for the quarter ended June 30, 2006 due to a $168,000 loss from sale of investment securities compared to a $88,000 gain on sale of investment securities for the comparable period in 2005. For the year ended June 30, 2006, noninterest income increased $171,000, or 14.2%, to $1.4 million. Included in noninterest income for the year ended June 30, 2006 was a $258,000 loss on sale of investment securities compared to a $45,000 gain on sale of investment securities for fiscal 2005. Security sales during fiscal 2006 generated liquidity to reduce the level of short-term borrowings and to fund loan growth and treasury stock repurchases. Mortgage origination fee income accounted for the largest increase in noninterest income with $132,000 and $578,000 for the quarter and year ended June 30, 2006, respectively, compared to $82,000 and $122,000 for the comparable periods in 2005. Noninterest expense increased $551,000, or 28.2%, to $2.5 million for the three-month period ended June 30, 2006, primarily due to an increase in compensation and benefits expense. Compensation and benefits expense increased $354,000, or 30.5%, to $1.5 million for the three-month period ended June 30, 2006, primarily due to staff additions for our new branch offices in Hamblen and Knox counties and our future branch office in Knox county that is anticipated to open in 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 June 30, 2006, compensation and benefits expense included $66,000 related to the expensing of stock options. For the year ended June 30, 2006, noninterest expense increased $1.9 million, or 27.3%, to $9.0 million due primarily to an increase in compensation and benefits expense. Compensation and benefits expense increased $1.5 million, or 36.9%, to $5.6 million for the year ended June 30, 2006 due to staff additions and stock option expensing. Compensation and benefits expense related to stock option expense totaled $265,000 for the year ended June 30, 2006. There were 98 full-time employees at June 30, 2006 compared to 77 full-time employees at June 30, 2005. Total assets at June 30, 2006 were $327.1 million compared to $295.0 million at June 30, 2005. During the year ended June 30, 2006, net loans receivable increased $45.7 million, or 21.9%, to $254.1 million, due to growth in real estate and consumer loans. Investment securities decreased $21.5 million, or 40.3%, to $31.8 million at June 30, 2006, compared to $53.4 million at June 30, 2005 due primarily to sales of investment securities. Total deposits increased $4.1 million, to $198.8 million at June 30, 2006 as a result of a $3.5 million increase in certificates of deposit. FHLB advances were $52.4 million at June 30, 2006, an increase of $35.4 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 $7.5 million, or 9.1%, to $74.5 million at June 30, 2006 due to a combination of factors, including the repurchase of shares in the amount of $9.1 million and dividend payments of $1.8 million, more than offsetting net income of $2.3 million. Stock repurchases for the three months ended June 30, 2006 totaled 81,360 shares at an average cost of $13.22 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 June 30, 2006, 574,274 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 Global 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 JUNE 30, 2006 JUNE 30, 2005 -------------------- ------------------- (Dollars in thousands) FINANCIAL CONDITION DATA: Total assets $ 327,137 $ 295,041 Loans receivable, net 254,127 208,438 Cash and cash equivalents, and interest-bearing deposits 11,956 11,027 Investment securities 31,845 53,366 Deposits 198,843 194,706 Borrowings 52,400 17,000 Stockholders' equity 74,543 82,028
THREE MONTHS ENDED JUNE 30, TWELVE MONTHS ENDED JUNE 30, 2006 2005 2006 2005 -------------------- ------------------- ------------------- ------------------ (Dollars in thousands, except per share data) OPERATING DATA: Interest income $ 4,901 $ 3,994 $ 18,092 $ 15,779 Interest expense 2,138 1,268 6,935 4,639 Net interest income 2,763 2,726 11,157 11,140 Provision (Recovery) for loan losses (68) - (68) - Net interest income after provision for loan losses 2,831 2,726 11,225 11,140 Noninterest income 193 415 1,375 1,204 Noninterest expense 2,502 1,951 8,950 7,031 Earnings before income taxes 522 1,190 3,650 5,313 Total income taxes 163 436 1,320 1,863 Net earnings 359 $ 754 2,330 $ 3,450 SHARE DATA: Earnings per share, basic $ 0.06 $ 0.11 $ 0.37 $ 0.47 Earnings per share, diluted $ 0.06 $ 0.11 $ 0.37 $ 0.47 Dividends per share $ 0.085 $ 0.10 $ 0.265 $ 0.25 Weighted average shares: Basic 6,115,760 6,929,559 6,345,549 7,265,831 Diluted 6,125,096 6,940,069 6,361,624 7,282,327
YEAR ENDED JUNE 30, 2006 2005 -------------------- ------------------- (Dollars in thousands) ALLOWANCE FOR LOAN LOSSES: Allowance at beginning of period $ 2,293 $ 2,479 Provision (recovery) for loan losses (68) - Recoveries 193 254 Charge-offs (246) (440) -------------------- ------------------- Net Charge-offs (53) (186) -------------------- ------------------- Allowance at end of period $ 2,172 $ 2,293 ==================== =================== Net charge-offs to average outstanding loans during the period, annualized 0.02% 0.09% AT AT JUNE 30, 2006 JUNE 30, 2005 -------------------- ------------------- (Dollars in thousands) NONPERFORMING ASSETS: Nonaccrual loans: Real estate $ 296 $ 426 Commercial business 49 - Consumer - - -------------------- ------------------- Total 345 426 -------------------- ------------------- Real estate owned 74 914 Other nonperforming assets 16 - -------------------- ------------------- Total nonperforming assets $ 435 $ 1,340 ==================== =================== YEAR ENDED YEAR ENDED JUNE 30, 2006 JUNE 30, 2005 -------------------- ------------------- PERFORMANCE RATIOS: Return on average assets 0.75% 1.14% Return on average equity 2.99% 3.92% Interest rate spread 3.16% 3.24% Net interest margin 3.89% 3.88% Efficiency ratio 69.97% 57.17% Average interest-earning assets to average interest-bearing liabilities 130.28% 139.49% ASSET QUALITY RATIOS: Allowance for loan losses as a percent of total gross loans 0.85% 1.09% Allowance for loan losses as a percent of nonperforming loans 629.57% 538.26% Nonperforming loans as a percent of total loans 0.13% 0.20% Nonperforming assets as a percent of total assets 0.13% 0.45%
Contacts: Jefferson Bancshares, Inc. Anderson L. Smith, 423-586-8421 or Jane P. Hutton 423-586-8421 -----END PRIVACY-ENHANCED MESSAGE-----