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JD Bancshares, Inc. Reports Financial Results for Q3 2020

·24 min read

JENNINGS, LA / ACCESSWIRE / October 22, 2020 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the three and nine-month periods ended September 30, 2020.

Net income is $1,693,921 or $1.09 per common share for the three-month period ended September 30, 2020 compared to $1,648,996 or $1.06 per share for the linked quarter ended June 30, 2020 and $2,373,939 or $1.52 per share for the prior year quarter ended September 30, 2019. Larger than anticipated loan loss provisions have been recorded for the 2020 quarters due to the uncertainty surrounding the economic impact on both our commercial and consumer loan customers resulting from the COVID-19 pandemic. For comparative purposes, pre-tax, pre-provision operating income provides greater insight into the financial performance of the Company. Pre-tax, pre-provision operating income for the current quarter is $2,637,056 compared to $2,847,642 for the linked quarter and $2,963,064 for the comparative prior year quarter. Pre-tax, pre-provision operating income excludes taxes, provision for loan losses, losses on the sale of other real estate owned and gains on the sale of investment securities. The current quarter decline is due to a decrease in the amount of Small Business Administration (SBA) Paychecks Protection Program (PPP) origination fees recognized and lower yields on earning assets.

For the nine-month period ended September 30, 2020, net income was $4,900,629 or $3.14 per share compared to $6,857,838 or $4.40 per share for the prior year comparative period. Pre-tax, pre-provision operating earnings for the two comparative nine-month periods was $7,986,946 and $8,417,508, respectively.

Bruce W. Elder, President & CEO commented, "The Company continues to build its allowance for loan losses due to the uncertainties associated with not only the pandemic, but also the impactful hurricane season experienced in southwest Louisiana. Customer reaction and monetary responses to this pandemic have had an adverse effect on current year non-interest income associated with deposit accounts and caused a substantial decline in the yield on average earning assets. We have been able to reduce our non-interest expenses such that pre-tax, pre-provision operating income for the comparative nine-month periods remain relatively stable. This has allowed us to continue to reward shareholders with a quarterly dividend of $0.59 per share." Elder continued "Our Calcasieu and Jeff Davis Parish branches were impacted by two major hurricanes hitting southwest Louisiana occurring six weeks apart. Both storms caused widespread power outages in the affected areas; however, our business continuity preparedness allowed us to open offices and serve the needs of our customers and communities at 13 of our 14 offices located in those parishes within days of the events."

COVID-19 Activities and Impact

Over the course of the second quarter of 2020, the Company made approximately 750 loans totaling $73.6 million. These loans are for terms ranging from two to five years and carry an interest rate of 1%. The Company received approximately $2.4 million in net fees from the SBA, of which $254,000 were recognized as interest income during the current quarter compared to $633,000 in the linked quarter. The remaining $1.5 million in fees will be recognized over the remaining life of the loans.

As was mentioned at the end of the second quarter, we assisted existing loan customers who experienced challenges as a result of the pandemic by extending 90 day payment deferrals to approximately 1,200 customers with loans totaling $208.6 million. The vast majority of those customers have returned to a normal payment cycle and while there has been a slight increase in past due loans, those borrowers who have returned to making payments appear able and willing. As of September 30, 2020, we approved a second 90 day deferral for less than 100 customers with loans totaling approximately $25.6 million. Loans on a COVID related deferral at June 30 accounted for approximately 31.14% of our total loan portfolio compared to approximately 3.87% at September 30, 2020.

Asset Quality

With the expiration of the first round of COVID related payment deferrals, the Company experienced a slight uptick in asset quality issues. As previously disclosed, past due loans of 89 days or less constituted 0.16% of the total portfolio at June 30, 2020. At September 30, total past due loans have increased to $1.8 million or 0.28% of the total loan portfolio. Despite the linked quarter-to-quarter increase, past due loans are still below the $3.3 million or 0.52% of total loans reported at December 31, 2019.

Total nonperforming assets, including loans on non-accrual status, other real estate owned (OREO) and repossessed assets are $10.1 million at September 30, 2020, up from $8.7 million at December 31, 2019. Loans on non-accrual status increased to $9.6 million from $7.7 million at December 31, 2019. While loans migrate to and from non-accrual status during the past nine-months, one loan in the amount of $1.4 million moving to non-accrual in June accounts for the majority of the increase. OREO decreased by $564,000 to $392,000 at September 30, 2020 from $956,000 at the year-end December 31, 2019, reflecting foreclosure activity net of sales and write-downs of certain real estate properties. Management performs a quarterly evaluation of OREO properties and believes their adjusted carrying values are representative of their fair market values, although there is no assurance that the ultimate sales will be equal or greater than the carrying values.

The Bank recorded $958,000 in provisions for credit losses in current quarter compared to $897,000 for the linked quarter and $90,000 for the prior year quarter ended September 30, 2019. The allowance for loan losses (ALLL) was $9.1 million at September 30, 2020 or 1.37% of total loans compared to $6.6 million at December 31, 2019 or 1.06% of total loans. Net charge offs are $78,000 for 2020 year-to-date compared to $297,000 for the prior year comparative period. Since March, the degree of uncertainty regarding the impact of the pandemic on asset quality has caused us to continually reassess our allowance for loan loss calculation. We believe that as of September 30, 2020, we have fine-tuned our methodology to account for that uncertainty to the best of our ability, given the information available. While we believe the current level of our ALLL is adequate, there is no assurance that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require additional adjustments to the ALLL.

Net Interest Income

Net interest income for the current quarter is $8.3 million, a decrease of $421,000 compared to the $8.7 million for the linked quarter, and is $525,000 lower than the $8.8 million reported for the prior year quarter ended September 30, 2019. The net interest margin for the current quarter was 3.61% and declined 44 basis points from 4.05% for the linked quarter and 96 basis points compared to 4.57% for the prior year period. The yield on earning assets for the current quarter was 4.11% compared to 4.60% and 5.16% for the two comparative periods, respectively. The cost of funds has declined slightly from 0.50% for current period compared to 0.54% for Q2 2020 and 0.60% from the prior year quarter.

Net margin has been significantly impacted by the sharp reduction in interest rates, the high volume of low priced PPP loans and a surge in deposit levels causing high levels of liquidity. As previously discussed, the Company originated approximately $73.6 million in PPP loans priced at 1%. The origination of these loans was important for the well-being of small businesses in our communities, but had an adverse impact on net interest margin. The yield on loans is 4.93% for the current quarter, down 68 basis points from 5.61% for Q3 2019. The pandemic has resulted in a significant increase in deposits as businesses and individuals are holding large quantities of cash. Non-PPP loan demand has been soft and the excess cash has been deployed into short-term investments yielding lower rates of interest. The weighted average yield of interest-bearing deposits with banks and investment securities for the quarter ended September 30, 2020 is 2.11% compared with 3.47% for the comparative period in 2019.

For the nine-month period ended September 30, 2020, net interest income is $25.6 million, down $705,000 from $26.3 million for the comparative period ended September 30, 2019. Net interest margin declined during the current nine-month period to 4.20% from 4.49% for the prior year comparative period.

Non-Interest Income

Total non-interest income is $2.8 million for the three-month period ended September 30, 2020 compared to $2.3 million for the linked quarter and $2.5 million for the prior year quarter. Service charges and fees associated with deposit accounts rebounded slightly from the June quarter to $1.7 million from $1.6 million, but remained below the level from the prior year quarter of $1.8 million. NSF fees tend to reflect depositors spending habits given their opinions about economic conditions. After declining significantly in the June 30, 2020 quarter, NSF fees increased by $144,000 to $585,000 for the current quarter, but remain $139,000 below the $724,000 reported for the prior year period. Interchange fees on debit card transactions are $882,000 for the current quarter, $893,000 for the linked quarter and $825,000 for the prior year quarter.

Despite the disruption in mortgage loans closings and sales resulting from the August 27 landfall of Hurricane Laura in southwest Louisiana, gains from the sale of mortgage loans in the current period are $280,000, slightly better than the $266,000 for the quarter ended June 30, 2020 and $148,000 more than the $132,000 reported for the prior year quarter. Mortgage rates remain at very attractive levels and both refinance and purchase money activity is robust. Other non-interest income was $842,000 for the current quarter compared to $484,000 for the quarter ended June 30, 2020 and $535,000 for the prior year quarter. The current quarter included a $252,000 gain on the sale of securities.

Non-interest income for the nine-month period ended September 30, 2020 was $7.5 million, a decline of $52,000 from the $7.6 million reported for the comparative 2019 period. Both periods included non-recurring gains on the sale of investment securities of $252,000 for the current period and $389,000 for the prior year period. An increase in gains on the sale of originated mortgages of $231,000, more than offset lower service charge revenue.

Non-Interest Expense

Total non-interest expense is $8.3 million for both the current and linked quarter and compares to $8.4 million for the September 2019 quarter. Salary and benefits expense is the largest component of non-interest expenses and is stable at $4.5 million for all three comparative periods. Personnel expenses for the current quarter reflect the additional expenses of staffing our newest office at 631 E. Admiral Doyle Drive in New Iberia, LA.

Occupancy expense has remained relatively stable at $1.3 million for the current and linked quarters compared with $1.4 million for the prior year quarter. Data processing expense is $899,000 for the current quarter, $918,000 for the linked quarter and $761,000 from a year ago. The increase from the September 2019 quarter relates primarily to the outsourcing of our ATM fleet to a third party and an increase in account volume. Marketing, business development and public relations expenses total $275,000 in the current quarter compared to $349,000 for the June 2020 quarter and $409,000 for the prior year quarter. The pandemic has limited the normal level of activity in these categories. Other non-interest expenses were $1.2 million for both the current and linked quarter and $1.3 million for the prior year quarter. Included in total other non-interest expenses are losses on the sale of OREO of $3,000, $41,000 and $73,000 for the three comparative periods, respectively.

Non-interest expenses for the nine-month period ended September 30, 2020 are $24.9 million, reflecting a $342,000 decrease compared to $25.3 million for the prior year. Decreases in salary and benefits, occupancy, marketing and business development, amortization of core deposit intangibles, professional fees and travel were partially offset by increases in data processing and audit fees. Losses on the sale of OREO for the current and prior nine-month periods are $69,000 and $220,000, respectively.

Income tax expense is $234,000 for the current quarter compared to $261,000 for the June 30, 2020 quarter and $426,000 for the September 30, 2019 quarter. The decline was primarily due to a reduction in the effective tax rate to 12.13% compared to 13.66% for the linked quarter and 15.22% for the prior year quarter. The downward shift in the effective tax rate from 2019 to 2020 is due to the restructure of the investment portfolio in the second quarter of 2019 to a higher concentration of tax-exempt securities. Current year-to-date income tax expense was $731,000 with an effective rate of 12.98% compared to $1,368,000 and 16.63% for the prior year nine-month period.

Balance Sheet

Total assets are $1.1 billion at September 30, 2020, reflecting a $195.8 million or 22% increase over the $885.0 million at December 31, 2019. Categories experiencing the largest increases include cash and interest-bearing deposits with banks up $103.3 million, investment securities are up $48.4 million and loans held for investment increased by $41.6 million. As previously mentioned, the Company has originated $73.6 million of PPP loans and the demand for non-PPP loans has been impacted by the economic conditions resulting from the pandemic. Southwest Louisiana experienced two hurricanes over a six week period resulting in significant property damages for both businesses and individuals. As recovery efforts progress, we believe the need for financing will begin to increase and provide opportunities for loan growth.

Total deposits are $960.2 million at September 30, 2020, reflecting a $188.1 million or 24% increase over the $772.1 million reported at year end 2019. Non-interest bearing demand deposits increased by $101.0 million or 38% since December 31, 2019. Balances in savings, interest-bearing demand, money market and time deposits have increased by $41.1 million, $23.3 million, $17.1 million, and $5.5 million, respectively. Both consumers and businesses are holding higher than normal amounts of cash in the face of COVID-19 pandemic.

Other liabilities increased by approximately $1.9 million since year-end 2019. The primary drivers of the increase are our deferred tax liability and the accrual for ad valorem taxes.

Stockholders' equity increased by $5.8 million to $94.7 million at September 30, 2020 from $88.9 million at December 31, 2019. The increase is primarily comprised of year-to-date net earnings of $4.9 million, plus the increase in other comprehensive income of $3.6 million, less the dividends paid to common shareholders of $2.8 million. The tangible equity to assets ratio decreased to 7.95% at September 30, 2020 from 9.46% at December 31, 2019 due to our significant asset growth. There were 1,560,000 common shares outstanding at both September 30, 2020 and December 31, 2019. Tangible book value per common share increased to $58.02 at September 30, 2020 compared to $54.28 at December 31, 2019.

Key Performance Ratios

Return on average assets (ROA) declined slightly in the current quarter compared with linked and prior year periods. ROA is 0.65% for the current three-month period compared to 0.66% for the linked quarter and 1.09% for prior year quarter. Return on average equity (ROE) is 7.33%, 7.09% and 11.42% for the three comparative quarters ended September 2020, June 2020 and September 2019, respectively. ROA and ROE for both 2020 periods were significantly impacted by the large loan loss provisions recorded due to uncertainty related to the pandemic. ROA and ROE for the nine-month periods ended September 30, 2020 and 2019 were 0.70% and 1.05%, and 7.14% and 11.18%, respectively.

About JD Bancshares, Inc.

JD Bancshares, Inc. is the bank holding company of JD Bank, a state chartered bank headquartered in Jennings, Louisiana. JD Bank has been serving the citizens of southwest Louisiana since 1947 and offers a variety of personal and commercial lending and deposit products through both physical and digital delivery channels. The Bank also offers both trust and investment services. JD Bank operates through 22 full service branch offices located along the Interstate 10 corridor from Lake Charles to Lafayette, Louisiana. JD Bancshares, Inc. may be accessed on its website at www.jdbank.com/investor relations .

JD Bancshares, Inc. (OTCQX: JDVB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com .

Forward-Looking Statements

Statements contained in this release, which are not historical facts, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, the effects of competition, and including without limitation to other factors that could cause actual results to differ materially as discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

For more information contact:

Bruce Elder (CEO) (337-246-5399)
Paul Brummett (CFO) (337-824-1422)
Website: www.jdbank.com

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

Actual
Sep 2020

Actual
Dec 2019

$ Variance

% Variance

Assets

Cash and due from banks

61,099,998

30,370,742

30,729,256

101.2

Interest bearing deposits with banks

84,576,721

11,982,637

72,594,084

605.8

Investment Securities - Taxable

122,779,739

69,127,279

53,652,460

77.6

Investment Securities - Tax-exempt

95,539,962

100,803,434

(5,263,472

)

(5.2

)

Mortgage loans held for sale

1,424,363

1,041,433

382,929

36.8

Loans, net of unearned income

662,378,985

620,734,159

41,644,826

6.7

Less: Allowance for loan losses

(9,069,946

)

(6,609,790

)

(2,460,155

)

(37.2

)

Premises and equipment, net

23,864,646

24,335,806

(471,160

)

(1.9

)

Accrued interest receivable

4,515,362

3,456,611

1,058,751

30.6

Other real estate

392,434

955,977

(563,543

)

(58.9

)

Other assets

33,327,523

28,850,470

4,477,053

15.5

Total Assets

1,080,829,786

885,048,756

195,781,030

22.1

Liabilities

Non-Interest Bearing Deposits

369,276,287

268,308,603

100,967,684

37.6

Interest bearing demand deposits

182,063,016

158,753,030

23,309,985

14.7

Savings and Money Market Deposits

289,060,613

230,802,149

58,258,464

25.2

Time Deposits - Retail

119,776,014

114,239,259

5,536,755

4.8

Total Deposits

960,175,930

772,103,042

188,072,889

24.4

Accrued expenses and other liabilities

5,538,600

3,582,138

1,956,463

54.6

FHLB Advances

2,825,985

3,011,367

(185,383

)

(6.2

)

Other Borrowings

17,602,634

17,490,445

112,189

0.6

Total Liabilities

986,143,150

796,186,992

189,956,158

23.9

Equity

Common stock

9,750,000

9,750,000

0

-

Capital surplus

3,598,000

3,598,000

0

-

Retained earnings

71,831,338

65,644,694

6,186,644

9.4

Accumulated other comprehensive income (loss)

4,897,099

1,270,276

3,626,822

285.5

Less: Notes Receivable common stock

-290,430

-349,050

58,620

16.8

Net Income

4,900,629

8,947,844

(4,047,215

)

(45.2

)

Total Equity

94,686,637

88,861,765

5,824,872

6.6

Total Liabilities & Equity

1,080,829,786

885,048,756

195,781,030

22.1

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

QTD
Actual
Sep 2020

QTD
Actual
Jun 2020

$ Variance

% Variance

QTD
Actual
Sep 2019

$ Variance

% Variance

Interest Income

Interest on Loans

8,216,991

8,729,051

(512,060

)

(5.9

)

8,767,549

(550,557

)

(6.3

)

Mortgage Loans Held For Sale

12,876

7,115

5,761

81.0

4,071

8,805

216.3

Interest on deposits with banks

77,917

85,381

(7,464

)

(8.7

)

152,965

(75,048

)

(49.1

)

Investment Securities - Taxable

462,296

405,179

57,117

14.1

324,113

138,183

42.6

Investment Securities - Tax-exempt

698,208

709,402

(11,194

)

(1.6

)

743,975

(45,766

)

(6.2

)

Total Interest Income

9,468,288

9,936,128

(467,839

)

(4.7

)

9,992,672

(524,384

)

(5.2

)

Interest Expense

Interest bearing demand deposits

219,666

216,511

3,155

1.5

230,798

(11,132

)

(4.8

)

Savings and Money Market Deposits

164,187

173,370

(9,183

)

(5.3

)

206,106

(41,918

)

(20.3

)

Time Deposits - Retail

420,346

453,825

(33,479

)

(7.4

)

393,794

26,552

6.7

Total Interest Expense on Deposits

804,199

843,706

(39,507

)

(4.7

)

830,697

(26,498

)

(3.2

)

FHLB Advances

29,887

36,892

(7,005

)

(19.0

)

32,827

(2,940

)

(9.0

)

Interest on other borrowings

338,534

338,534

1

-

308,399

30,135

9.8

Total Interest Expense

1,172,621

1,219,132

(46,511

)

(3.8

)

1,171,924

697

0.1

Net Interest Income

8,295,668

8,716,996

(421,328)

(4.8)

8,820,749

(525,081)

(6.0)

Provision for loan losses

958,000

897,000

61,000

6.8

90,000

868,000

964.4

Net In. Inc. After Prov. for Loan Losses

7,337,668

7,819,996

(482,328)

(6.2)

8,730,749

(1,393,081)

(16.0)

Non Interest Income

Service charges and fees

1,732,995

1,599,294

133,701

8.4

1,840,733

(107,738

)

(5.9

)

Mortgage loan and related fees

280,115

266,170

13,945

5.2

132,053

148,062

112.1

Other noninterest income

841,934

483,734

358,200

74.0

534,807

307,127

57.4

Total Non Interest Income

2,855,043

2,349,197

505,846

21.5

2,507,592

347,451

13.9

Non Interest Expense

Salaries and employee benefits

4,543,931

4,537,459

6,471

0.1

4,533,705

10,226

0.2

Occupancy

1,321,475

1,267,802

53,674

4.2

1,399,177

(77,702

)

(5.6

)

Advertising and public relations

274,592

348,689

(74,097

)

(21.3

)

408,588

(133,996

)

(32.8

)

Data Processing

899,379

917,778

(18,399

)

(2.0

)

760,848

138,531

18.2

Other noninterest expense

1,225,544

1,187,492

38,052

3.2

1,335,988

(110,444

)

(8.3

)

Total Non Interest Expense

8,264,921

8,259,220

5,701

0.1

8,438,306

(173,385

)

(2.1

)

Income Before Taxes

1,927,790

1,909,973

17,817

0.9

2,800,035

(872,244)

(31.2)

Income taxes

233,869

260,977

(27,108

)

(10.4

)

426,096

(192,227

)

(45.1

)

Net Income

1,693,921

1,648,996

44,925

2.7

2,373,939

(680,018)

(28.6)

Per common share data:

Earnings

$

1.09

$

1.06

$

1.52

Weighted average number of shares outstanding

1,560,000

1,560,000

1,559,156

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)

YTD
Actual
Sep 2020

YTD
Actual
Sep 2019

$ Variance

% Variance

Interest Income

Interest on Loans

25,590,044

25,969,560

(379,516

)

(1.5

)

Mortgage Loans Held For Sale

26,329

15,800

10,528

66.6

Funds Transfer Interest

0

98

(98

)

(100.0

)

Interest on deposits with banks

222,139

600,821

(378,683

)

(63.0

)

Investment Securities - Taxable

1,321,964

1,681,828

(359,863

)

(21.4

)

Investment Securities - Tax-exempt

2,127,922

1,630,025

497,897

30.5

Total Interest Income

29,288,398

29,898,132

(609,734

)

(2.0

)

Interest Expense

Interest bearing demand deposits

663,757

697,573

(33,816

)

(4.8

)

Savings and Money Market Deposits

549,721

552,528

(2,807

)

(0.5

)

Time Deposits - Retail

1,346,357

1,067,952

278,405

26.1

Total Interest Expense on Deposits

2,559,835

2,318,053

241,782

10.4

FHLB Advances

121,292

350,163

(228,871

)

(65.4

)

Interest on other borrowings

1,009,984

927,271

82,713

8.9

Total Interest Expense

3,691,111

3,595,487

95,624

2.7

Net Interest Income

25,597,287

26,302,645

(705,358)

(2.7)

Provision for loan losses

2,538,000

360,000

2,178,000

605.0

Net In. Inc. After Prov. for Loan Losses

23,059,287

25,942,645

(2,883,358)

(11.1)

Non Interest Income

Service charges and fees

5,078,768

5,244,457

(165,689

)

(3.2

)

Mortgage loan and related fees

680,684

449,196

231,488

51.5

Other noninterest income

1,745,681

1,863,682

(118,001

)

(6.3

)

Total Non Interest Income

7,505,133

7,557,336

(52,202

)

(0.7

)

Non Interest Expense

Salaries and employee benefits

13,704,093

13,761,192

(57,099

)

(0.4

)

Occupancy

3,883,582

3,987,774

(104,192

)

(2.6

)

Advertising and public relations

991,430

1,273,443

(282,013

)

(22.1

)

Data Processing

2,775,196

2,269,409

505,787

22.3

Other noninterest expense

3,578,248

3,982,300

(404,052

)

(10.1

)

Total Non Interest Expense

24,932,549

25,274,118

(341,569

)

(1.4

)

Income Before Taxes

5,631,871

8,225,862

(2,593,992)

(31.5)

Income taxes

731,241

1,368,024

(636,783

)

(46.5

)

Net Income

4,900,629

6,857,838

(1,957,209)

(28.5)

Per common share data:

Earnings

$

3.14

$

4.40

Weighted average number of shares outstanding

1,560,000

1,559,156

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

Margin Analysis Compare

Average Yield and Rate

Average Funds

Interest Income/Expense

QTD
Actual
Sep 2020

QTD
Actual
Jun 2020

Change

QTD
Actual
Sep 2020

QTD
Actual
Jun 2020

Change

QTD
Actual
Sep 2020

QTD
Actual
Jun 2020

Change

Earning Assets

Loans

4.93

5.25

(0.32

)

663,035,980

668,932,880

(5,896,900

)

8,216,991

8,729,051

(512,060

)

Loan fees

0

0

-

0

0

-

0

0

-

Loans with fees

4.93

5.25

(0.32

)

663,035,980

668,932,880

(5,896,900

)

8,216,991

8,729,051

(512,060

)

Mortgage loans held for sale

3.2

2.78

0.42

1,609,449

1,024,414

585,035

12,876

7,115

5,761

Deposits with banks

0.44

0.72

(0.28

)

70,630,360

47,708,728

22,921,632

77,917

85,381

(7,464)

Investment securities - taxable
1.79 2.34 (0.55) 103,530,798 69,226,938 34,303,860 462,296 405,179 57,117
Investment securities - tax-exempt
3.68 3.69 (0.01) 96,064,395 97,464,172 (1,399,776) 698,208 709,402 (11,194)
Total Earning Assets
4.11 4.6 (0.49) 934,870,983 884,357,132 50,513,851 9,468,288 9,936,128 (467,839)
Interest bearing liabilities
Interest bearing demand
0.52 0.52 - 167,885,293 165,954,419 1,930,874 219,666 216,511 3,155
Savings and Money Market
0.23 0.26 (0.03) 280,009,740 271,545,940 8,463,800 164,187 173,370 (9,183)
Time deposits - Retail
1.4 1.55 (0.15) 119,330,425 117,666,743 1,663,682 420,346 453,825 (33,479)
Total interest bearing deposits
0.56 0.61 (0.05) 567,225,457 555,167,102 12,058,355 804,199 843,706 (39,507)
Federal home Loan Bank advances
4.1 1.47 2.63 2,854,283 9,919,082 (7,064,799) 29,887 36,892 (7,005)
Other borrowings
7.53 7.64 (0.11) 17,580,872 17,540,168 40,703 338,534 338,534 1
Total borrowed funds
7.05 5.41 1.64 20,435,155 27,459,250 (7,024,096) 368,421 375,426 (7,004)
Total interest-bearing liabilities
0.79 0.84 (0.05) 587,660,612 582,626,353 5,034,260 1,172,621 1,219,132 (46,511)
Net interest rate spread
3.32 3.76 (0.44) 8,295,668 8,716,996 (421,328)
Effect of non-interest bearing deposits
(0.29) (0.30) 0.01 346,974,631 324,018,573 22,956,057
Cost of funds
0.5 0.54 (0.04)
Net interest margin
3.61 4.05 (0.44)

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

Margin Analysis Compare

Average Yield and Rate

Average Funds

Interest Income/Expense

QTD
Actual
Sep 2020

QTD
Actual
Sep 2019

Change

QTD
Actual
Sep 2020

QTD
Actual
Sep 2019

Change

QTD
Actual
Sep 2020

QTD
Actual
Sep 2019

Change

Earning Assets

Loans

4.93

5.61

(0.68

)

663,035,980

619,769,542

43,266,438

8,216,991

8,767,549

(550,557

)

Loan fees

0

0

-

0

0

-

0

0

-

Loans with fees

4.93

5.61

(0.68

)

663,035,980

619,769,542

43,266,438

8,216,991

8,767,549

(550,557

)

Mortgage loans held for sale

3.2

4.03

(0.83

)

1,609,449

404,034

1,205,415

12,876

4,071

8,805

Deposits with banks

0.44

2.99

(2.55

)

70,630,360

20,270,729

50,359,631

77,917

152,965

(75,048

)

Investment securities - taxable

1.79

3.01

(1.22

)

103,530,798

43,142,132

60,388,666

462,296

324,113

138,183

Investment securities - tax-exempt

3.68

3.76

(0.08

)

96,064,395

100,281,436

(4,217,041

)

698,208

743,975

(45,766

)

Total Earning Assets

4.11

5.16

(1.05)

934,870,983

783,867,873

151,003,110

9,468,288

9,992,672

(524,384)

Interest bearing liabilities

Interest bearing demand

0.52

0.64

(0.12

)

167,885,293

142,331,351

25,553,941

219,666

230,798

(11,132

)

Savings and Money Market

0.23

0.35

(0.12

)

280,009,740

231,262,701

48,747,039

164,187

206,106

(41,918

)

Time deposits - Retail

1.4

1.39

0.01

119,330,425

112,797,714

6,532,711

420,346

393,794

26,552

Total interest bearing deposits

0.56

0.68

(0.12

)

567,225,457

486,391,767

80,833,691

804,199

830,697

(26,498

)

Federal home Loan Bank advances

4.1

4.15

(0.05

)

2,854,283

3,096,839

(242,556

)

29,887

32,827

(2,940

)

Other borrowings

7.53

6.86

0.67

17,580,872

17,602,928

(22,056

)

338,534

308,399

30,135

Total borrowed funds

7.05

6.45

0.60

20,435,155

20,699,768

(264,613

)

368,421

341,226

27,195

Total interest-bearing liabilities

0.79

0.91

(0.12)

587,660,612

507,091,534

80,569,078

1,172,621

1,171,924

697

Net interest rate spread

3.32

4.25

(0.93)

8,295,668

8,820,749

(525,081)

Effect of non-interest bearing deposits

(0.29

)

(0.31

)

0.02

346,974,631

263,486,765

83,487,866

Cost of funds

0.5

0.6

(0.10

)

Net interest margin

3.61

4.57

(0.96)

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

Margin Analysis Compare

Average Yield and Rate

Average Funds

Interest Income/Expense

YTD
Actual
Sep 2020

YTD
Actual
Sep 2019

Change

YTD
Actual
Sep 2020

YTD
Actual
Sep 2019

Change

YTD
Actual
Sep 2020

YTD
Actual
Sep 2019

Change

Earning Assets

Loans

5.55

5.59

(0.04

)

615,621,547

621,156,646

(5,535,099

)

25,590,044

25,969,560

(379,516

)

Loan fees

0

0

-

0

0

-

0

98

(98

)

Loans with fees

5.55

5.59

(0.04

)

615,621,547

621,156,646

(5,535,099

)

25,590,044

25,969,658

(379,614

)

Mortgage loans held for sale

3.04

4.34

(1.30

)

1,154,007

485,976

668,030

26,329

15,800

10,528

Deposits with banks

0.63

2.95

(2.32

)

47,264,461

27,205,148

20,059,313

222,139

600,821

(378,683

)

Investment securities - taxable

2.32

2.8

(0.48

)

75,978,643

80,165,087

(4,186,445

)

1,321,965

1,681,828

(359,863

)

Investment securities - tax-exempt

3.91

4.12

(0.21

)

91,861,042

66,803,555

25,057,487

2,127,922

1,630,025

497,897

Total Earning Assets

4.79

5.09

(0.30)

831,879,699

795,816,412

36,063,288

29,288,398

29,898,132

(609,734)

Interest bearing liabilities

Interest bearing demand

0.57

0.64

(0.07

)

154,895,286

146,313,511

8,581,775

663,757

697,573

(33,816

)

Savings and Money Market

0.29

0.33

(0.04

)

249,302,596

227,253,495

22,049,101

549,721

552,528

(2,807

)

Time deposits - Retail

1.62

1.26

0.36

110,923,156

113,527,657

(2,604,500

)

1,346,357

1,067,952

278,405

Time Deposits - Wholesale

0

0

-

0

-99

99

0

0

-

Total interest bearing deposits

0.66

0.64

0.02

515,121,039

487,094,563

28,026,476

2,559,835

2,318,053

241,782

Federal home Loan Bank advances

2.12

2.79

(0.67

)

7,506,558

16,564,914

(9,058,356

)

121,292

350,163

(228,871

)

Other borrowings

7.57

6.92

0.65

17,521,824

17,675,322

(153,499

)

1,009,984

927,271

82,713

Total borrowed funds

5.94

4.92

1.02

25,028,381

34,240,236

(9,211,855

)

1,131,276

1,277,434

(146,158

)

Total interest-bearing liabilities

0.91

0.92

(0.01)

540,149,420

521,334,799

18,814,621

3,691,111

3,595,487

95,624

Net interest rate spread

3.88

4.18

(0.29)

25,597,287

26,302,645

(705,358)

Effect of non-interest bearing deposits

(0.32

)

(0.31

)

(0.01

)

296,467,171

263,055,546

33,411,625

Cost of funds

0.59

0.61

(0.02

)

Net interest margin

4.2

4.49

(0.29)

JD BANCSHARES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

For the Nine

For the Nine

For the Qtr

For the Qtr

For the Qtr

Months

Months

Ended

Ended

Ended

Ended

Ended

September 30,
2020

June 30,
2020

September 30,
2019

September 30,
2020

September 30,
2019

Performance Ratios

Return on Average Assets

0.65

%

0.66

%

1.09

%

0.70

%

1.05

%

Return on Average Equity

7.33

%

7.09

%

11.42

%

7.14

%

11.18

%

Earnings per Share

$

1.09

$

1.06

$

1.52

$

3.14

$

4.40

Net Interest Margin

3.61

%

4.05

%

4.57

%

4.20

%

4.50

%

Efficiency Ratio **

74.56

%

73.38

%

73.87

%

74.61

%

74.54

%

Non-Interest Income as a % of Avg. Assets**

1.00

%

0.91

%

1.12

%

1.03

%

1.06

%

Non-Interest Expense as a % of Avg. Assets

3.18

%

3.27

%

3.90

%

3.59

%

3.87

%

As of

As of

September 30, 2020

December 31, 2019

Capital

Tier 1 Leverage Ratio

7.98

%

9.51

%

Common Equity Tier 1 Ratio

13.49

%

13.04

%

Tier 1 Risk-Based Capital Ratio

13.49

%

13.04

%

Total Risk-Based Capital Ratio

14.92

%

14.07

%

Tangible Equity / Total Assets

7.95

%

9.46

%

Tangible Book Value per Share

$

58.02

$

54.28

Reconcilement of GAAP to Pre-tax, Pre-Provision Operating Income:

For the Nine

For the Nine

For the Qtr

For the Qtr

For the Qtr

Months

Months

Ended

Ended

Ended

Ended

Ended

September 30,
2020

June 30,
2020

September 30,
2019

September 30,
2020

September 30,
2019

Net Income (GAAP)

$

1,693,921

$

1,648,996

$

2,373,939

$

4,900,629

$

6,857,838

Provision for Loan Lossess

958,000

897,000

90,000

2,538,000

360,000

Net Loss on OREO

3,223

40,669

73,029

69,032

220,044

Less: Net Gain on Securities

(251,957

)

-

-

(251,957

)

(388,398

)

Income Tax Expense

233,869

260,977

426,096

731,241

1,368,024

Pre-tax, Pre-Provision Operating Income

$

2,637,056

$

2,847,642

$

2,963,064

$

7,986,945

$

8,417,508

** Non-recurring items are eliminated for this ratio

SOURCE: JD Bancshares, Inc.



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