-----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, OqoYfE3KrdglGDi0PqkLRgWOvC+R528yz26btyIwf12haL7s7x/4nrSOC61aBQN8 ddV5b4hP3S0qKK0F413TwA== 0000909654-06-002277.txt : 20070119 0000909654-06-002277.hdr.sgml : 20070119 20061030133715 ACCESSION NUMBER: 0000909654-06-002277 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061027 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061030 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: 061171346 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 jefferson8koct30-06.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) October 27, 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 October 27, 2006, Jefferson Bancshares, Inc., the holding company for Jefferson Federal Bank, announced its financial results for the quarter ended September 30, 2006. The press release announcing financial results for the quarter ended September 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 October 27, 2006 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: October 30, 2006 By: /s/ Anderson L. Smith ------------------------------------- Anderson L. Smith President and Chief Executive Officer EX-99.1 2 jefferson8koct30-06ex99.txt JEFFERSON BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE QUARTER ENDED SEPTEMBER 30, 2006 Morristown, Tennessee -- (October 27, 2006) - Jefferson Bancshares, Inc. (Nasdaq: JFBI), the holding company for Jefferson Federal Bank, announced net income of $290,000, or $0.05 per diluted share, for the quarter ended September 30, 2006 compared to net income of $785,000, or $0.12 per diluted share, for the quarter ended September 30, 2005. The decline in net income for the three-month period ended September 30, 2006 was primarily the result of a decrease in net interest income and noninterest income combined with an increase in noninterest expense. The increase in noninterest expense was attributable to the staffing and operational costs of two new full-service offices and our future branch office scheduled to open in 2007. Return on average assets and return on average equity for the quarter ended September 30, 2006 were 0.35% and 1.55%, respectively, compared to 1.05% and 3.87% for the corresponding 2005 period. Anderson L. Smith, President and Chief Executive Officer, commented, "The interest rate environment continues to be challenging for financial institutions and competition for loans and deposits is very intense. Despite this difficult environment, we have achieved strong loan and deposit growth during the quarter while maintaining positive trends in asset quality. Our recent additions of the Merchants-Greene office in Hamblen County and our Farragut office in Knox County have allowed us to expand our customer base, and construction on our second Knoxville office is underway with an estimated completion date of mid 2007. While our recent expansion efforts have adversely affected our current earnings, we feel that we are positioning the Company for future growth and building the value of our franchise." Net interest income decreased $65,000 to $2.7 million for the quarter ended September 30, 2006 from the corresponding quarter in 2005. The interest rate spread and net interest margin for the quarter ended September 30, 2006 were 2.86% and 3.65%, respectively, compared to 3.38% and 4.06% for the corresponding 2005 period. Interest income increased $940,000, or 22.4%, to $5.1 million for the three-month period ended September 30, 2006 due to growth in average earning assets and an increase in short-term interest rates. The average yield earned on interest-earning assets increased 77 basis points to 6.82% for the three months ended September 30, 2006. Interest expense increased $1.0 million, or 72.8%, to $2.4 million for the quarter ended September 30, 2006 as a result of an increase in the volume and rate paid on interest-bearing liabilities. The average rate paid on interest-bearing liabilities increased 129 basis points to 3.95% for the three months ended September 30, 2006. Noninterest income decreased $69,000, or 15.1%, to $387,000 for the quarter ended September 30, 2006 compared to the corresponding 2005 period due to a combination of factors including decreases in mortgage origination income, service charges and gain on sale of foreclosed property more than offsetting a decrease in loss on sale of investment securities. Noninterest expense increased $591,000, or 28.5%, to $2.7 million for the three-month period ended September 30, 2006 compared to the corresponding 2005 period due to a combination of factors including increases in expenses for compensation and benefits, occupancy, advertising and equipment and data processing. Compensation and benefits expense increased $262,000, or 20.5%, to $1.5 million for the three-month period ended September 30, 2006 primarily due to staff additions for our branch offices in Hamblen and Knox Counties and our future branch office in Knox County that is anticipated to open in 2007. There were 95 full-time employees at September 30, 2006 compared to 81 full-time employees at September 30, 2005. Increases in advertising, occupancy, equipment and data processing expenses were also the result of our recent expansion activities. Nonperforming assets totaled $271,000, or 0.08% of total assets at September 30, 2006, compared to $480,000, or 0.16% of total assets at September 30, 2005 due to a decline in repossessed assets. Net charge-offs for the quarter ended September 30, 2006 were $28,000, or 0.04% of average loans, compared to $12,000, or 0.02% of average loans for the quarter ended September 30, 2005. The allowance for loan losses was $2.1 million, or 0.80% of total gross loans, at September 30, 2006 compared to $2.3 million, or 1.05% of total gross loans, at September 30, 2005. There were no additions to the allowance for loan losses for either three-month period. Total assets at September 30, 2006 were $331.4 million compared to $327.1 million at June 30, 2006. During the quarter ended September 30, 2006, net loans receivable increased $10.9 million, or 4.3%, to $265.0 million, primarily due to growth in real estate loans. Total deposits increased $9.3 million, or 4.7%, during the quarter to $208.1 million at September 30, 2006 as a result of marketing efforts and promotions associated with the opening of our two new full-service offices. The increase in deposits has provided funding for loan growth and reduced our reliance on Federal Home Loan Bank advances during the quarter ended September 30, 2006. Federal Home Loan Bank advances were $47.9 million at September 30, 2006, a decrease of $4.5 million compared to $52.4 million at June 30, 2006. Total equity decreased $101,000, to $74.4 million at September 30, 2006 due primarily to the repurchase of shares in the amount of $633,000. Stock repurchases for the three months ended September 30, 2006 totaled 47,351 shares at an average cost of $13.38 per share. On February 24, 2006, the Company announced its third stock repurchase program in which up to 690,261 shares, or 10% of the Company's outstanding common stock, may be repurchased. At September 30, 2006, 526,923 shares remained eligible for repurchase under the current stock repurchase program. The Company paid a $0.06 per share dividend to shareholders during the quarter ended September 30, 2006 totaling $396,000. 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 press release, as well as other written communications made from time to time by the Company and its subsidiaries and oral communications made from time to time by authorized officers of the Company, may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA. The Company cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and geopolitical conditions; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services and other factors that may be described in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
JEFFERSON BANCSHARES, INC. AT AT SEPTEMBER 30, 2006 JUNE 30, 2006 ------------------------------- -------------------- (Dollars in thousands) FINANCIAL CONDITION DATA: Total assets $ 331,398 $ 327,137 Loans receivable, net 265,033 254,127 Cash and cash equivalents, and interest-bearing deposits 8,760 11,956 Investment securities 31,271 31,845 Deposits 208,130 198,843 Borrowings 47,900 52,400 Stockholders' equity 74,442 74,543 THREE MONTHS ENDED SEPTEMBER 30, 2006 2005 ------------------------------- -------------------- (Dollars in thousands, except per share data) OPERATING DATA: Interest income $ 5,134 $ 4,194 Interest expense 2,385 1,380 Net interest income 2,749 2,814 Provision for loan losses - - Net interest income after provision for loan losses 2,749 2,814 Noninterest income 387 456 Noninterest expense 2,666 2,075 Earnings before income taxes 470 1,195 Total income taxes 180 410 Net earnings 290 785 SHARE DATA: Earnings per share, basic $ 0.05 $ 0.12 Earnings per share, diluted $ 0.05 $ 0.12 Dividends per share $ 0.06 $ 0.06 Weighted average shares: Basic 6,041,551 6,620,320 Diluted 6,049,466 6,633,489 THREE MONTHS ENDED SEPTEMBER 30, 2006 2005 ------------------------------- -------------------- (Dollars in thousands) ALLOWANCE FOR LOAN LOSSES: Allowance at beginning of period $ 2,172 $ 2,293 Provision for loan losses - - Recoveries 25 36 Charge-offs (53) (48) ------------------------------- -------------------- Net charge-offs (28) (12) ------------------------------- -------------------- Allowance at end of period $ 2,144 $ 2,281 =============================== ==================== Net charge-offs to average outstanding loans during the period, annualized 0.04% 0.02%
AT AT AT SEPTEMBER 30, 2006 JUNE 30, 2006 SEPTEMBER 30, 2005 ------------------------------- -------------------- ------------------------ (Dollars in thousands) NONPERFORMING ASSETS: Nonaccrual loans: Real estate $ 138 $ 296 $ 221 Commercial business 50 49 - Consumer 17 - - ------------------------------- -------------------- ------------------------ Total 205 345 221 ------------------------------- -------------------- ------------------------ Real estate owned 66 74 259 Other nonperforming assets - 16 - ------------------------------- -------------------- ------------------------ Total nonperforming assets $ 271 $ 435 $ 480 =============================== ==================== ========================
THREE MONTHS ENDED YEAR ENDED SEPTEMBER 30, 2006 JUNE 30, 2006 ------------------------------- -------------------- PERFORMANCE RATIOS: Return on average assets 0.35% 0.75% Return on average equity 1.55% 2.99% Interest rate spread 2.86% 3.16% Net interest margin 3.65% 3.89% Efficiency ratio 85.03% 69.97% Average interest-earning assets to average interest-bearing liabilities 124.88% 130.28% ASSET QUALITY RATIOS: Allowance for loan losses as a percent of total gross loans 0.80% 0.85% Allowance for loan losses as a percent of nonperforming loans 1045.85% 629.57% Nonperforming loans as a percent of total loans 0.08% 0.13% Nonperforming assets as a percent of total assets 0.08% 0.13%
Contacts: Jefferson Bancshares, Inc. Anderson L. Smith 423-586-8421 Jane P. Hutton 423-586-8421 -----END PRIVACY-ENHANCED MESSAGE-----