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Net income In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period.It is computed as the residual of all revenues and gains less all expenses and losses for the period, and has also been defined as the net increase in shareholders' equity that results from a company's operations. It is different from gross income, which only deducts the cost of goods sold from revenue.
Morristown, Tennessee Morristown is a city in and the county seat of Hamblen County, Tennessee, United States. Morristown also extends into Jefferson County on the western and southern ends.
Hamblen County, Tennessee Hamblen County is a county located in the U.S. state of Tennessee. As of the 2020 census, the population was 64,499.
Jefferson County, Tennessee Jefferson County is an exurban county located in the U.S. state of Tennessee. As of the 2020 census, the population was 54,683.
Savings and loan crisis The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations (S&Ls) in the United States from 1986 to 1995. An S&L or "thrift" is a financial institution that accepts savings deposits and makes mortgage, car and other personal loans to individual members (a cooperative venture known in the United Kingdom as a building society).
Commercial property Commercial property, also called commercial real estate, investment property or income property, is real estate (buildings or land) intended to generate a profit, either from capital gains or rental income. Commercial property includes office buildings, medical centers, hotels, malls, retail stores, multifamily housing buildings, farm land, warehouses, and garages.
Anthony Blair (criminal) Anthony Blair (c. 1849 – September 26, 1879) was an African-American convicted for the murder of his 16-year-old stepdaughter Maggie Blair. He was executed by hanging, the first such execution to occur in Hamblen County, Tennessee.
List of high schools in Tennessee This is a list of high schools, either currently open, closed, or planned to open in the future, in the U.S. state of Tennessee.\n\n\n== Anderson County ==\nAnderson County High School, Clinton\nClinton High School, Clinton\nOak Ridge High School, Oak Ridge\n\n\n== Bedford County ==\nCentral High School, Shelbyville\nCommunity School, Unionville\nWebb School, Bell Buckle\nCascade High School, Wartrace\n\n\n== Benton County ==\nBig Sandy High School, Big Sandy\nCamden Central High School, Camden\n\n\n== Bledsoe County ==\nBledsoe County High School, Pikeville\n\n\n== Blount County ==\nAlcoa High School, Alcoa\nWilliam Blount High School, Maryville\nHeritage High School, Maryville\nMaryville High School, Maryville\nPeninsula Village School, Louisville\nEagleton College and Career Academy, Eagleton\n\n\n== Bradley County ==\nBradley Central High School, Cleveland\nCleveland High School, Cleveland\nWalker Valley High School, Charleston\nTennessee Christian Preparatory School, Cleveland\nUnited Christian Academy, Cleveland\n\n\n== Campbell County ==\nCampbell County High School, Jacksboro\nJellico High School, Jellico\n\n\n== Cannon County ==\nCannon County High School, Woodbury\n\n\n== Carroll County ==\nCarroll Academy, Huntingdon\nClarksburg High School, Clarksburg\nHollow Rock-Bruceton Central High School, Bruceton\nHuntingdon High School, Huntingdon\nMcKenzie High School, McKenzie\nWest Carroll Junior / Senior High School, Atwood\n\n\n== Carter County ==\nCloudland High School, Roan Mountain\nElizabethton High School, Elizabethton\nHampton High School, Hampton\nHappy Valley High School, Elizabethton\nUnaka High School, Hunter\n\n\n== Cheatham County ==\nCheatham County High School, Ashland City\nHarpeth High School, Kingston Springs\nPleasant View Christian School, Pleasant View\nSycamore High School, Pleasant View\n\n\n== Chester County ==\nChester County High School, Henderson\n\n\n== Claiborne County ==\nClaiborne High School, Tazewell (replaces Claiborne County High School)\nJ. Frank White Academy, Harrogate\nCumberland Gap High School, Harrogate, Tennessee\n\n\n== Clay County ==\nClay County High School, Celina\n\n\n== Cocke County ==\nCocke County High School, Newport\nCosby High School, Cosby\n\n\n== Coffee County ==\nCoffee County Central High School, Manchester\nTullahoma High School, Tullahoma\n\n\n== Crockett County ==\nCrockett County High School, Alamo\n\n\n== Cumberland County ==\nCumberland County High School, Crossville\nStone Memorial High School, Crossville\nSylvan Learning of the Cumberlands, Crossville\nThe Phoenix School, Crossville\n\n\n== Davidson County ==\nAcademy at Old Cockrill, Nashville\nAntioch High School,\nCane Ridge High School, Nashville\nChrist Presbyterian Academy, Nashville\nDonelson Christian Academy, Nashville\nDavidson Academy, Nashville\nEast Magnet School, Nashville\nEzell-Harding Christian School, Antioch\nFather Ryan High School, Nashville\nFranklin Road Academy, Nashville\nGlencliff High School, Nashville\nGoodpasture Christian School, Madison\nHarpeth Hall School, Nashville\nHillsboro High School, Nashville\nHillwood Comprehensive High School, Nashville\nHume-Fogg High School, Nashville\nHunters Lane High School, Nashville*\nJohn Overton Comprehensive High School, Nashville\nMartin Luther King Magnet at Pearl High School, Nashville\nMadison Academy, Madison\nMaplewood Comprehensive High School, Nashville\nMcGavock High School, Nashville\nMetro Christian Academy, Madison\nMiddle College High School, Nashville\nMontgomery Bell Academy, Nashville\nNashville Academy, Antioch\nNashville Big Picture, Nashville\nNashville Christian School, Bellevue\nNashville School of the Arts, Nashville\nPearl Cohn Magnet High School, Nashville\nRenaissance High School, Nashville\nSt.
Morristown-Hamblen High School West Morristown-Hamblen High School West (also known as Morristown West High School) is a secondary school located in Morristown, Tennessee. The school incorporates grades 9-12.
Stuart Hamblen Carl Stuart Hamblen (October 20, 1908 – March 8, 1989) was an American entertainer who became one of radio's first singing cowboys in 1926, going on to become a singer, actor, radio show host, and songwriter. He underwent a Christian conversion and became a Temperance movement supporter and recurring candidate for political office.
Hamblen Hamblen is a surname. Notable people with the surname include:\n\nFrank Hamblen, National Basketball Association (NBA) coach and scout, and a former college basketball player at Syracuse University\nHerbert M. Hamblen (1905–1994), American Washington State politician\nJ. H. Hamblen (1877–1971), lifelong Texan, a pastor of the Methodist Episcopal Church, South in Texas, an evangelist and revivalist preacher\nLapsley W. Hamblen Jr.
European Economic Area The European Economic Area (EEA) was established via the Agreement on the European Economic Area, an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade Association. The EEA links the EU member states and three EFTA states (Iceland, Liechtenstein, and Norway) into an internal market governed by the same basic rules.
Mortgage loan A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination.
Student loan A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
Loan shark A loan shark is a person who offers loans at extremely high interest rates, has strict terms of collection upon failure, and generally operates outside the law. Because loan sharks operating illegally cannot reasonably expect to be able to use the legal system to collect such debts, they often resort to enforcing repayment by blackmail and threats of violence.
Competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Perfect competition In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price.
Competition law Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement.
Monopolistic competition Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
Interspecific competition Interspecific competition, in ecology, is a form of competition in which individuals of different species compete for the same resources in an ecosystem (e.g. food or living space).
Competition regulator A competition regulator is the institution that oversees the functioning of the markets. And the Law in which it takes cognizance of situations having any type of impediments and distortions on the markets and correct them is the competition law (also known as antitrust law).
Commercial area Commercial areas in a city are areas, districts, or neighborhoods primarily composed of commercial buildings, such as a strip malls, office parks, downtown, central business district, financial district, "Main Street", or shopping centers. Commercial activity within cities includes the buying and selling of goods and services in retail businesses, wholesale buying and selling, financial establishments, and a wide variety of uses that are broadly classified as "business." While commercial activities typically take up a relatively small amount of land, they are extremely important to a community's economy.
Savings and loan association A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks.
Unsecured debt In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment. Unsecured debts are sometimes called signature debt or personal loans.
Participation loan Participation loans are loans made by multiple lenders to a single borrower. \nSeveral banks, for example, might chip in to fund one extremely large loan, with one of the banks taking the role of the "lead bank".
Allowance for Loan and Lease Losses In banking, the Allowance for Loan and Lease Losses (ALLL), formerly known as the reserve for bad debts, is a calculated reserve that financial institutions establish in relation to the estimated credit risk within the institution's assets. This credit risk represents the charge-offs that will most likely be realized against an institution's operating income as of the financial statement end date.
Citibank Citibank is the consumer division of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York.
PIK loan A PIK, or payment in kind, is a type of high-risk loan or bond that allows borrowers to pay interest with additional debt, rather than cash. That makes it an expensive, high-risk financing instrument since the size of the debt may increase quickly, leaving lenders with big losses if the borrower is unable to pay back the loan.
Operation Mincemeat Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Arithmetic Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Operations management Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Operations research Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Surgery Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Bitwise operation In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Operation (mathematics) In mathematics, an operation is a function which takes zero or more input values (called operands) to a well-defined output value. The number of operands (also known as arguments) is the arity of the operation.
Risk Factors
JEFFERSON BANCSHARES INC ITEM 1A RISK FACTORS Additional operating expenses relating to our expansion activities may reduce our profitability
We will incur additional expenses relating to our lending and branch expansion strategy
These expenses will be primarily salaries and employee benefits for the additional employees hired to staff our new offices and occupancy and equipment relating to our two new full-service branch offices that opened in mid-2006 and our anticipated branch office in Knoxville, Tennessee scheduled to open in 2007
Initially, we expect that these expenses will be greater than the additional income that we generate through our new facilities
Over time, we anticipate that we will generate sufficient income to offset the expenses related to our new facilities and new employees, although we cannot guarantee when that will occur
We may not be able to implement successfully our plans for growth
We have operated out of our main office and two drive-through facilities in Morristown, Tennessee since 1963 and have historically considered Hamblen County to be our primary market area
Recently, our management began to implement a growth strategy that expands our presence in Morristown, as well as into Knoxville, Tennessee, approximately 40 miles southwest of Morristown
In mid-2006, we opened two full-service branch offices, one in Morristown and one in Knoxville
In addition, we intend to open a second full-service branch office in Knoxville during 2007
In connection with these new branches, we will have, among others, construction expenses, as well as the cost of equipment and hiring new employees
We cannot assure you that our expansion strategy will be accretive to earnings, or that our strategy will be accretive to earnings within a reasonable period of time
Numerous factors will affect our expansion strategy, such as our ability to select suitable office locations, real estate acquisition costs, competition, interest rates, managerial resources, our ability to hire and retain qualified personnel, the effectiveness of our marketing strategy and our ability to attract deposits
We can provide no assurance that we will be successful in increasing the volume of our loans and deposits by expanding our lending and branch network
We can provide no assurance that we will be able to manage the costs and implementation risks associated with this strategy so that expansion of our lending and branch network will be profitable
A downturn in the local economy or a decline in real estate values could hurt our earnings
The success of our business depends on our ability to generate profits and grow our franchise
We are located in Morristown, Tennessee and consider Hamblen County, with a population of 60cmam000, and its contiguous counties to be our primary market area, although we are currently expanding into the Knoxville region
The economy of the Hamblen County market area is based primarily on manufacturing and agriculture
Our primary lending activity is the origination of loans secured by real estate
Nearly all of these loans are made to borrowers who live and work in our primary market area
As a result, a downturn in the local economy could cause significant 15 ______________________________________________________________________ [43]Table of Contents increases in nonperforming loans, which would hurt our earnings
Decreases in real estate values could adversely affect the value of property used as collateral for our loans which would expose us to a greater risk of loss
In addition, adverse employment conditions may have a negative effect on the ability of our borrowers to make timely repayments of their loans and on our ability to make new loans, which would have an adverse impact on our earnings
Rising interest rates may hurt our earnings and asset value
Interest rates have recently been at historically low levels
However, since June 30, 2004, the US Federal Reserve has increased its target for the federal funds rate 17 times, from 1dtta00prca to 5dtta25prca
While these short-term market interest rates (which we use as a guide to our price deposits) have increased, longer-term market interest rates (which we use as a guide to price our longer-term loans) have not
This “flattening” of the market yield curve has had a negative impact on our interest rate spread and net interest margin, and if short-term interest rates continue to rise, and if rates on our deposits and borrowings continue to reprice upwards faster than the rates on our long-term loans and investments, we would continue to experience compression of our interest rate spread and net interest margin, which would have a negative effect on our profitability
Changes in interest rates also affect the value of our interest-earnings assets, and in particular our securities portfolio
Generally, the value of fixed-rate securities fluctuates inversely with changes in interest rates
Unrealized gains and losses on securities available for sale are reported as a separate component of equity, net of tax
Decreases in the fair value of securities available for sale resulting from increases in interest rates could have an adverse effect on stockholders’ equity
Strong competition within our market area could hurt our profits and slow growth
We face intense competition both in making loans and attracting deposits
This competition has made it more difficult for us to make new loans and at times has forced us to offer higher deposit rates
Price competition for loans and deposits might result in us earning less on our loans and paying more on our deposits, which reduces net interest income
As of June 30, 2005, we held 25dtta4prca of the deposits in Hamblen County, which is the largest market share out of nine financial institutions with offices in the county at that date
However, banks owned by SunTrust Banks, Inc, First Tennessee National Corporation and Regions Financial Corporation, all of which are large regional bank holding companies, also operate in Hamblen County
These institutions are significantly larger than us and, therefore, have significantly greater resources
We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry
Our profitability depends upon our continued ability to compete successfully in our market area
Our commercial real estate, commercial business and multi-family real estate loans expose us to increased lending risks
At June 30, 2006, dlra156dtta2 million, or 60dtta9prca, of our loan portfolio consisted of commercial real estate, commercial business and multi-family real estate loans
Commercial real estate and multi-family real estate loans generally expose a lender to greater risk of non-payment and loss than one- to four-family residential mortgage loans because repayment of the loans often depends on the successful operation of the property and the income stream of the borrowers
Commercial business loans expose us to additional risks because they typically are made on the basis of the borrower’s ability to make repayments from the cash flow of the borrower’s business and are secured by collateral that may depreciate over time
All three of these types of loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans
Because such loans generally entail greater risk than one- to four- family residential mortgage loans, we may need to increase our allowance for loan losses in the future to account for the likely increase in probable incurred credit losses associated with the growth of such loans
Also, many of our commercial borrowers have more than one loan outstanding with us
Consequently, an adverse development with respect to one loan or one credit relationship can expose us to a significantly greater risk of loss compared to an adverse development with respect to a one- to four-family residential mortgage loan
16 ______________________________________________________________________ [44]Table of Contents We may require further additions to our allowance for loan losses, which would reduce net income
If our borrowers do not repay their loans or if the collateral securing their loans is insufficient to provide for the full repayment, we may suffer credit losses
We make various assumptions and judgments about the collectibility of our loan portfolio and provide an allowance for loan losses based on a number of factors
If our assumptions and judgments are wrong, our allowance for loan losses may not be sufficient to cover our losses
If we determine that our allowance for loan losses is insufficient, we would be required to take additional provisions for loan losses, which would reduce net income during the period those provisions are taken
In addition, the Office of Thrift Supervision periodically reviews our allowance for loan losses and may require us to increase our allowance for loan losses or to charge off particular loans
Loss of our President and Chief Executive Officer could hurt our operations
We rely heavily on our President and Chief Executive Officer, Anderson L Smith
Smith could have an adverse effect on us because, as a small community bank, Mr
Smith is responsible for more aspects of our business than he might be at a larger financial institution with more employees
Moreover, as a small community bank, we have fewer management-level employees who are in a position to succeed and assume the responsibilities of Mr
We have entered into a three-year employment agreement with Mr
We do not have key-man life insurance on Mr
We operate in a highly regulated environment and we may be adversely affected by changes in laws and regulations
We are subject to extensive regulation, supervision and examination by the Office of Thrift Supervision, our chartering authority, and by the Federal Deposit Insurance Corporation, as insurer of our deposits
As a savings and loan holding company, Jefferson Bancshares is subject to regulation and supervision by the Office of Thrift Supervision
Such regulation and supervision govern the activities in which an institution and its holding company may engage, and are intended primarily for the protection of the insurance fund and depositors
Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets and determination of the level of our allowance for loan losses
Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations