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 29, 2014
JEFFERSON BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Tennessee | 0-50347 | 45-0508261 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
120 Evans Avenue, Morristown, Tennessee 37814
(Address of principal executive offices, including 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 29, 2014, Jefferson Bancshares, Inc. (the “Company”), the holding company for Jefferson Federal Bank, announced its financial results for the three and nine months ended March 31, 2014. The press release announcing financial results for the three and nine months ended March 31, 2014 is included as Exhibit 99.1 and is furnished herewith. The information contained in this Item 2.02 and in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 | Financial Statements and Exhibits | |
(d) | Exhibits | |
Number | Description | |
99.1 | Earnings Press Release Dated April 29, 2014 |
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. | ||
Date: May 1, 2014 | By: | /s/ Jane P. Hutton |
Jane P. Hutton | ||
Chief Financial Officer and Treasurer |
Jefferson Bancshares, Inc. 8-K
Exhibit 99.1
JEFFERSON BANCSHARES, INC. ANNOUNCES EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31, 2014
Morristown, Tennessee -- (April 29, 2014) – Jefferson Bancshares, Inc. (NASDAQ: JFBI), the holding company for Jefferson Federal Bank (the “Bank”), announced net income for the quarter ended March 31, 2014 of $440,000, or $0.07 per diluted share, compared to net income of $386,000, or $0.06 per diluted share, for the quarter ended March 31, 2013. For the nine months ended March 31, 2014, the Company reported net income of $1.4 million, or $0.22 per diluted share, compared to net income of $1.0 million, or $0.16 per diluted share, for the nine months ended March 31, 2013. The improvement in net income is largely the result of a lower provision for loan losses and lower noninterest expense which more than offset a decrease in net interest income and noninterest income during the quarter and nine months ended March 31, 2014.
Anderson L. Smith, President and Chief Executive Officer, commented, “Our third quarter results reflect a continuation of positive trends in several key areas. Notwithstanding acquisition related expenses totaling $226,000, net income increased 14.0% to $440,000 for the quarter ended March 31, 2014. Although the extended low interest rate environment continues to pressure asset yields, we have been successful in lowering funding costs to offset decreases in asset yields. We are encouraged by the gradual improvement in loan demand in our market. Net loans grew to $342.3 million, reflecting an increase of $21.0 million during the nine months ended March 31, 2014. Asset quality continues to improve as evidenced by the ratio of non-performing assets as a percent of total assets totaling 2.49% at March 31, 2014 compared to 3.81% at June 30, 2013 and 3.98% at March 31, 2013.”
Net interest income remained relatively unchanged at $4.0 million for the quarter ended March 31, 2014 compared to the same period in 2013. The net interest margin was 3.67% for the quarter ended March 31, 2014 compared to 3.63% for the same period in 2013. The yield on interest-earning assets declined by 9 basis points compared to the same period in 2013, as the current low interest rate environment has continued to negatively impact asset yields. The cost of interest-bearing liabilities decreased 14 basis points due primarily to lower rate paid on FHLB advances. For the nine months ended March 31, 2014, net interest income decreased $251,000, or 2.0%, to $12.0 million compared to $12.3 million for the nine months ended March 31, 2013, while the net interest margin remained steady at 3.63% compared to the same period in 2013.
Noninterest income decreased $61,000, or 11.0% to $493,000 for the quarter ended March 31, 2014 and decreased $266,000, or 14.8%, to $1.5 million for the nine months ended March 31, 2014 compared to the same periods in 2013. Mortgage origination fee income decreased $66,000 and $263,000, respectively, for the three and nine month periods ended March 31, 2014 compared to the same periods in 2013 due to a decline in refinance originations.
Noninterest expense remained relatively unchanged at $3.8 million for the quarter ended March 31, 2014 compared to the same period in 2013. Noninterest expense for the three months ended March 31, 2014 included acquisition related expenses totaling $226,000. Noninterest expense for the nine months ended March 31, 2014 decreased $376,000, or 3.2%, to $11.5 million compared to the same period in 2013 due primarily to a decrease in expenses related to foreclosed property totaling $378,000 and a decrease in deposit insurance premiums totaling $191,000 more than offsetting acquisition related expenses totaling $244,000.
At March 31, 2014, total assets were $506.8 million compared to $503.0 million at June 30, 2013. Net loans increased $21.0 million, or 6.5%, to $342.3 million at March 31, 2014, compared to $321.3 million at June 30, 2013 due to an increase in loan demand. Total deposits decreased $15.7 million to $384.0 million at March 31, 2014 compared to $399.6 million at June 30, 2013. Certificates of deposit comprised 36.0% of total deposits at March 31, 2014 compared to 37.1% of total deposits at June 30, 2013. The average cost of interest-bearing deposits for the three-month period ended March 31, 2014 was 0.37% compared to 0.41% for the corresponding period in 2013.
The Bank continues to be well-capitalized under regulatory requirements. At March 31, 2014, the Bank's total risk-based, Tier 1 risk-based, and Tier 1 leverage capital ratios were 14.28%, 13.21%, and 9.81%, respectively, compared to 14.18%, 12.93%, and 9.21%, respectively, at June 30, 2013. At March 31, 2014, the Company had 6,595,301 common shares outstanding with a book value of $8.25 per common share.
Nonperforming assets totaled $12.6 million, or 2.49% of total assets, at March 31, 2014, compared to $19.2 million, or 3.81% of total assets, at June 30, 2013. Nonaccrual loans totaled $6.8 million at March 31, 2014 compared to $12.8 million at June 30, 2013. Nonaccrual loans with a current payment status represented approximately 48.0% of total nonaccrual loans at March 31, 2014. Foreclosed real estate totaled $4.9 million at March 31, 2014 compared to $5.4 million at June 30, 2013. Net charge-offs for the three months ended March 31, 2014 were $54,000, or 0.06% of average loans annualized, compared to $259,000, or 0.29% of average loans annualized, for the quarter ended March 31, 2013. The allowance for loan losses was $3.9 million, or 1.13% of total loans, at March 31, 2014 compared to $5.7 million, or 1.73% of total loans, at June 30, 2013. There was no provision for loan losses recorded for the quarter ended March 31, 2014, compared to a $200,000 provision for the quarter ended March 31, 2013. The decrease in the provision for loan losses is the result of continued improvement in asset quality.
Jefferson Bancshares, Inc. is the holding company for Jefferson Federal Bank, a Tennessee-chartered savings bank headquartered in Morristown, Tennessee. Jefferson Federal Bank 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.
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
JEFFERSON BANCSHARES, INC.
At | At | |||||||
March 31, 2014 | June 30, 2013 | |||||||
(Dollars in thousands) | ||||||||
Financial Condition Data: | ||||||||
Total assets | $ | 506,806 | $ | 503,028 | ||||
Loans receivable, net | 342,303 | 321,299 | ||||||
Cash and cash equivalents, and | ||||||||
interest-bearing deposits | 20,888 | 24,514 | ||||||
Investment securities | 88,008 | 96,024 | ||||||
Deposits | 383,974 | 399,642 | ||||||
Repurchase agreements | 593 | 551 | ||||||
FHLB advances | 59,899 | 37,626 | ||||||
Subordinated debentures | 7,442 | 7,358 | ||||||
Stockholders' equity | $ | 54,398 | $ | 53,025 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
(Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | ||||||||||
Operating Data: | |||||||||||
Interest income | $ | 4,621 | $ | 4,781 | $ | 13,959 | $ | 14,681 | |||
Interest expense | 605 | 751 | 1,915 | 2,386 | |||||||
Net interest income | 4,016 | 4,030 | 12,044 | 12,295 | |||||||
Provision for loan losses | - | 200 | - | 800 | |||||||
Net interest income after | |||||||||||
provision for loan losses | 4,016 | 3,830 | 12,044 | 11,495 | |||||||
Noninterest income | 493 | 554 | 1,534 | 1,800 | |||||||
Noninterest expense | 3,841 | 3,845 | 11,545 | 11,921 | |||||||
Earnings before income taxes | 668 | 539 | 2,033 | 1,374 | |||||||
Total income taxes | 228 | 153 | 651 | 345 | |||||||
Net earnings | $ | 440 | $ | 386 | $ | 1,382 | $ | 1,029 | |||
Share Data: | |||||||||||
Earnings per share, basic | $ | 0.07 | $ | 0.06 | $ | 0.22 | $ | 0.16 | |||
Earnings per share, diluted | $ | 0.07 | $ | 0.06 | $ | 0.22 | $ | 0.16 | |||
Book value per common share | $ | 8.25 | $ | 8.11 | $ | 8.25 | $ | 8.11 | |||
Weighted average shares: | |||||||||||
Basic | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 | |||||||
Diluted | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||
Allowance at beginning of period | $ | 3,973 | $ | 5,702 | $ | 5,660 | $ | 5,852 | ||||||||
Provision for loan losses | — | 200 | — | 800 | ||||||||||||
Recoveries | 4 | 27 | 204 | 427 | ||||||||||||
Charge-offs | (58 | ) | (259 | ) | (1,945 | ) | (1,409 | ) | ||||||||
Net Charge-offs | (54 | ) | (232 | ) | (1,741 | ) | (982 | ) | ||||||||
Allowance at end of period | $ | 3,919 | $ | 5,670 | $ | 3,919 | $ | 5,670 | ||||||||
Net charge-offs to average outstanding | ||||||||||||||||
loans during the period, annualized | 0.06 | % | 0.29 | % | 0.70 | % | 0.41 | % |
JEFFERSON BANCSHARES, INC.
At | At | At | ||||||||||
March 31, 2014 | June 30, 2013 | March 31, 2013 | ||||||||||
(Dollars in thousands) | ||||||||||||
Nonperforming Assets: | ||||||||||||
Nonperforming loans | $ | 6,827 | $ | 12,796 | $ | 12,937 | ||||||
Nonperforming investments | 872 | 942 | 719 | |||||||||
Real estate owned | 4,928 | 5,433 | 6,489 | |||||||||
Other nonperforming assets | — | — | — | |||||||||
Total nonperforming assets | $ | 12,627 | $ | 19,171 | $ | 20,145 |
Nine Months Ended | Year Ended | Nine Months Ended | ||||||||||
March 31, 2014 | June 30, 2013 | March 31, 2013 | ||||||||||
Performance Ratios: | ||||||||||||
Return on average assets | 0.37 | % | 0.31 | % | 0.27 | % | ||||||
Return on average equity | 3.42 | % | 2.97 | % | 2.56 | % | ||||||
Interest rate spread | 3.55 | % | 3.55 | % | 3.54 | % | ||||||
Net interest margin | 3.63 | % | 3.64 | % | 3.63 | % | ||||||
Efficiency ratio | 85.03 | % | 84.16 | % | 84.45 | % | ||||||
Average interest-earning assets to | ||||||||||||
average interest-bearing liabilities | 112.98 | % | 112.76 | % | 112.66 | % | ||||||
Asset Quality Ratios: | ||||||||||||
Allowance for loan losses as a | ||||||||||||
percent of total loans | 1.13 | % | 1.73 | % | 1.79 | % | ||||||
Allowance for loan losses as a | ||||||||||||
percent of nonperforming loans | 57.40 | % | 44.23 | % | 43.83 | % | ||||||
Nonperforming loans as a percent | ||||||||||||
of total loans | 1.97 | % | 3.91 | % | 4.07 | % | ||||||
Nonperforming assets as a percent | ||||||||||||
of total assets | 2.49 | % | 3.81 | % | 3.98 | % |