-----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, KqxqiUoUw3ThCRWXYYxDM3oEesg4r2WZd468DLkwzde6Gzt7kO8RMyhiGBOSi2CD 4QYFT12E42X2sOGQgdle6w== 0000909654-09-000930.txt : 20091102 0000909654-09-000930.hdr.sgml : 20091102 20091102155439 ACCESSION NUMBER: 0000909654-09-000930 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20091029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20091102 DATE AS OF CHANGE: 20091102 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: 091151135 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 jefferson8koct29.txt 1 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 29, 2009 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)) 2 ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION --------------------------------------------- On October 29, 2009, Jefferson Bancshares, Inc. (the "Company"), the holding company for Jefferson Federal Bank, announced its financial results for the quarter ended September 30, 2009. The press release announcing financial results for the quarter ended September 30, 2009 is included as Exhibit 99.1 and is furnished herewith. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- (d) Exhibits Number Description ------ ----------- 99.1 Earnings Press Release Dated October 29, 2009 3 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: November 2, 2009 By: /s/ Jane P. Hutton -------------------------------- Jane P. Hutton Chief Financial Officer and Treasurer EX-99.1 2 jefferson8koct29release.txt 1 JEFFERSON BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 Morristown, Tennessee -- (October 29, 2009) - Jefferson Bancshares, Inc. (Nasdaq: JFBI), the holding company for Jefferson Federal Bank, announced net earnings for the quarter ended September 30, 2009 of $484,000, or $0.08 per diluted share, compared to net earnings of $533,000, or $0.09 per diluted share, for the quarter ended September 30, 2008. The 2009 results reflect the Company's acquisition of State of Franklin Bancshares, Inc., the parent company of State of Franklin Bank, a Tennessee chartered savings bank headquartered in Johnson City, Tennessee, (collectively, "State of Franklin") on October 31, 2008. Anderson L. Smith, President and Chief Executive Officer commented, "Financial institutions continue to confront a challenging operating environment due to the struggling economy and historically low interest rates. Current economic conditions have impacted the performance of the Company's loan portfolio, as evidenced by higher charge-offs and an increased provision for loan losses compared to the prior year. However, our asset quality continues to compare favorably with industry peers. Non-performing assets to total assets were 1.42% at September 30, 2009, compared to 1.43% at June 30, 2009, and 0.36% at September 30, 2008. We are proactive in identifying the risk within our loan portfolio and in managing problem loans. On the deposit side, we continue to monitor our deposit mix and deposit pricing and have been successful in achieving growth in lower costing transaction accounts." The net interest margin was 3.24% for the quarter ended September 30, 2009 compared to 3.95% for the same period in 2008. The yield on interest-earning assets declined 70 basis points to 5.47% for the quarter ended September 30, 2009 compared to 6.17% for the same period in 2008 due primarily to reductions in market interest rates. The yield on assets was impacted in the current quarter by loan payoffs as well as a higher balance of loans in nonaccrual status. The cost of interest-bearing liabilities declined 37 basis points to 2.43% for the quarter ended September 30, 2009 compared to 2.80% for the same period in 2008 primarily due to lower market interest rates. At September 30, 2009, total assets were $654.5 million compared to $662.7 million at June 30, 2009. Investment securities increased $18.9 million, or 51.7%, to $55.4 million during the quarter ended September 30, 2009 due to purchases of government agency and U.S. Treasury securities. Net loans decreased $17.6 million to $480.5 million at September 30, 2009, compared to $498.1 million at June 30, 2009, due primarily to lower loan demand combined with both residential and commercial loan payoffs during the quarter. Total deposits decreased $9.1 million to $473.1 million at September 30, 2009 compared to $482.2 million at June 30, 2009 due to the planned runoff of higher costing time deposits, which was partially offset by increases in money market, interest-bearing NOW and savings deposits. Time deposits decreased $23.1 million to $249.0 million at September 30, 2009 compared to June 30, 2009. The average cost of interest-bearing deposits was 2.15% for the quarter ended September 30, 2 2009 compared to 2.59% for the corresponding period in 2008. Total Federal Home Loan Bank advances were virtually unchanged at $90.2 million at September 30, 2009 compared to $90.3 million at June 30, 2009. Total stockholders' equity increased $1.3 million to $80.8 million at September 30, 2009 compared to $79.5 million at June 30, 2009. Unrealized gains and losses, net of taxes, in the available-for-sale investment portfolio are reflected as an adjustment to stockholders' equity. At September 30, 2009, the adjustment to stockholders' equity was a net unrealized gain of $741,000 compared to a net unrealized gain of $150,000 at June 30, 2009. As of September 30, 2009 the Company had 6,706,489 common shares outstanding with a book value of $12.05 per common share. The Bank continues to be well-capitalized under regulatory requirements. Nonperforming assets represented 1.42% of total assets at September 30, 2009, compared to 1.43% of total assets at June 30, 2009 and 0.36% of total assets at September 30, 2008. The level of nonperforming assets increased for the quarter ended September 30, 2009 compared to the same period in 2008 due to an increase in nonaccrual real estate loans and repossessed assets. Net charge-offs for the three months ended September 30, 2009 were $427,000, or 0.35% of average loans on an annualized basis, compared to $38,000, or 0.05% of average loans on an annualized basis, for the same period in 2008. The allowance for loan losses was $4.6 million, or 0.95% of total loans, at September 30, 2009 compared to $4.7 million, or 0.94% of total loans, at June 30, 2009 and $2.0 million, or 0.68% of total loans, at September 30, 2008. The provision for loan losses totaled $300,000 for the three months ended September 30, 2009, compared to $160,000 for the three months ended September 30, 2008. The increase in the provision for loan losses was primarily the result of the increase in nonaccrual real estate loans during the 2009 period and current economic conditions. Jefferson Bancshares, Inc. is the holding company for Jefferson Federal Bank, a Tennessee-chartered savings bank headquartered in Morristown, Tennessee. Jefferson Federal is a community oriented financial institution offering traditional financial services with offices in Hamblen, Knox, Washington and Sullivan Counties, Tennessee. 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. 3 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. Contacts: Jefferson Bancshares, Inc. Anderson L. Smith, President and Chief Executive Officer 423-586-8421 Jane P. Hutton, Chief Financial Officer 423-586-8421 4 JEFFERSON BANCSHARES, INC.
AT AT SEPTEMBER 30, 2009 JUNE 30, 2009 ------------------ ------------- (Dollars in thousands) Financial Condition Data: Total assets $654,512 $662,655 Loans receivable, net 480,500 498,107 Cash and cash equivalents, and interest-bearing deposits 37,310 44,108 Investment securities 55,438 36,544 Deposits 473,098 482,167 Total borrowings 98,008 98,606 Stockholders' equity 80,781 $ 79,505
THREE MONTHS ENDED SEPTEMBER 30, 2009 2008 -------------- -------------- (Dollars in thousands, except per share data) OPERATING DATA: Interest income $ 7,945 $ 4,668 Interest expense 3,250 1,681 Net interest income 4,695 2,987 Provision for loan losses 300 160 Net interest income after provision for loan losses 4,395 2,827 Noninterest income 908 394 Noninterest expense 4,611 2,339 Earnings before income taxes 692 882 Total income taxes 208 349 Net earnings $ 484 $ 533 SHARE DATA: Earnings per share, basic $ 0.08 $ 0.09 Earnings per share, diluted $ 0.08 $ 0.09 Book value per common share $ 12.05 $ 11.82 Tangible book value $ 8.37 $ 11.82 Weighted average shares: Basic 6,216,515 5,638,175 Diluted 6,216,515 5,638,175
THREE MONTHS ENDED SEPTEMBER 30, 2009 2008 ------------- -------------- (Dollars in thousands) Allowance for Loan Losses: Allowance at beginning of period $ 4,722 $ 1,836 Provision for loan losses 300 160 Recoveries 25 11 Charge-offs (452) (49) ------------- -------------- Net Charge-offs (427) (38) ------------- -------------- Allowance at end of period $ 4,595 $ 1,958 ============= ============== Net charge-offs to average outstanding loans during the period, annualized 0.35% 0.05%
5
AT AT AT SEPT. 30, 2009 JUNE 30, 2009 SEPT. 30, 2008 -------------- ------------- -------------- (Dollars in thousands) Nonperforming Assets: Nonperforming loans $6,955 $6,031 $ 725 Real estate owned 2,318 3,328 474 Other nonperforming assets 24 106 5 -------------- ------------- -------------- Total nonperforming assets $9,297 $9,465 $1,204 ============== ============= ==============
THREE MONTHS ENDED YEAR ENDED SEPTEMBER 30, 2009 JUNE 30, 2009 ------------------ ------------- PERFORMANCE RATIOS: Return on average assets 0.29% 0.48% Return on average equity 2.39% 3.40% Interest rate spread 3.05% 3.17% Net interest margin 3.24% 3.42% Efficiency ratio 82.40% 76.57% Average interest-earning assets to average interest-bearing liabilities 108.63% 110.52% ASSET QUALITY RATIOS: Allowance for loan losses as a percent of total gross loans 0.95% 0.94% Allowance for loan losses as a percent of nonperforming loans 66.07% 78.30% Nonperforming loans as a percent of total loans 1.43% 1.20% Nonperforming assets as a percent of total assets 1.42% 1.43%
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