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JD Bancshares, Inc. Reports Financial Results for Three and Twelve-Month Periods Ended December 31, 2020

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JENNINGS, LA / ACCESSWIRE / January 21, 2021 / 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 twelve-month periods ended December 31, 2020.

Net income is $2,303,079 or $1.48 per common share for the three-month period ended December 31, 2020 compared to $1,693,921 or $1.09 per common share for the linked quarter ended September 30, 2020 and $2,090,006 or $1.34 per share for the prior year quarter ended December 31, 2019. The economic uncertainty associated with both the COVID-19 pandemic and two major hurricanes hitting the southwest Louisiana region have resulted in larger loan loss provisions in 2020. 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 $2,508,474 compared to $2,637,056 for the linked quarter and $2,773,357 for the comparative prior year quarter. Pre-tax, pre-provision operating income excludes taxes, provision for loan losses, net losses on the sale of other real estate owned, gains on the sale of investment securities and net gains on the disposal of fixed assets. The current quarter was adversely impacted by an increase in non-interest expenses that were partially offset by an increase in the recognition of Small Business Administration (SBA) Paychecks Protection Program (PPP) origination fees as a portion of our PPP loans have been forgiven.

For the twelve-month period ended December 31, 2020, net income was $7,203,708 or $4.62 per share compared to $8,947,844 or $5.74 per share for the prior year comparative period. Pre-tax, pre-provision operating earnings for the two comparative twelve-month periods was $10,443,300 and $11,171,187, respectively.

Bruce W. Elder, President & CEO commented, "In a year full of unprecedented occurrences which included a pandemic, two hurricanes and 50% deposit growth, the Company's performance was certainly impacted by the uncertainty of the pandemic's impact on asset quality, the lack of non-PPP loan demand and a flood of liquidity that is invested in very low interest yielding assets. Despite these challenges, the team has delivered respectable financial results. The primary cause of a $1.7 million decline in year-over-year net earnings was an increase of $2.0 million in provision for loan losses. Management believes enhancing the reserve for loan loss level during 2020 was the prudent thing to do given the circumstances."

Elder continued by saying "We declared a 10% stock dividend on December 17, 2020, payable on January 4, 2021 to shareholders of record on December 28, 2020. The Board decided that going forward, the declaration and payment of cash dividends will be considered after the financial results of each quarter are known. Therefore, cash dividends, the amount of which are dependent on the level of quarterly earnings and anticipated capital needs of the Bank and Company, will be considered in January, April, July and October and paid in February, May, August and November."

COVID-19 and Hurricane Laura Impact

The Bank made approximately 750 PPP loans totaling $73.6 million. These loans are for terms ranging from two to five years and carry an interest rate of 1%. As of December 31, 2020, we had been repaid approximately $12.9 million and had $60.7 million in PPP loans outstanding. We received approximately $2.4 million in net origination fees from the SBA, of which approximately $555,000 were recognized as interest income during the current quarter compared to $254,000 in the linked quarter. For the twelve-months ended December 31, 2020, we had recognized approximately $1,442,000 in PPP origination fees and the other $973,000 will be recognized over the remaining life of the outstanding loans.

On December 27, 2020, the President signed into law the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. The legislation provides additional relief to those who meet the eligibility requirements by offering loans through the nation's banking system at terms substantially similar to those offered since the SBA PPP program's inception. The Bank anticipates participating in the program and will therefore originate an additional group of loans earning a lower than market rate of interest, but with yield enhancing origination fees that will be earned over the life of those loans.

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. We approved a second 90 day deferral for less than 100 customers with loans totaling approximately $25.6 million. The loans whose payments were deferred due to the COVID-19 pandemic have reached the end of the deferral period and any loans still experiencing payment issues are reflected in the past due numbers and percentages shown below in the Asset Quality narrative.

Hurricane Laura hit southwest Louisiana on August 27, 2020. The Bank provided relief by extending payment deferrals on approximately 670 loans totaling $67.5 million. The majority of those extensions were made in September 2020 with payments due to resume in December. Seven of the original loans totaling $359,000 have been extended a second time. As of December 31, 2020, there are 44 of the original 670 loans totaling $5.4 million that are due for December, but are not yet 30 days past due and therefore not reflected in the figures discussed in the Asset Quality section below.

Asset Quality

Loans past due of 30 to 89 days at December 31, 2020 are $1.3 million or 0.21% of the total loans outstanding compared to $1.8 million or 0.28% of the total loan portfolio at September 30, 2020 and $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 $9.1 million at December 31, 2020 compared to $8.7 million at December 31, 2019. Loans on non-accrual status at year-end 2020 increased to $8.8 million from $7.7 million at December 31, 2019. OREO decreased by $665,000 to $291,000 at December 31, 2020 from $956,000 at comparative prior year-end. Management performs a quarterly evaluation of OREO properties and believes the 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 $190,000 in provision for credit losses in current quarter compared to $958,000 for the linked quarter and $336,000 for the prior year quarter. The allowance for loan losses (ALLL) is $8.6 million at December 31, 2020 or 1.36% of total loans compared to $6.6 million at December 31, 2019 or 1.06% of total loans. Net charge offs are $755,000 for 2020 compared to $471,000 for the prior year comparative period. We believe the current level of our ALLL is adequate, but there is no assurance that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require future adjustments to the ALLL.

Net Interest Income

Net interest income for the current quarter is $8.4 million, an increase of $146,000 compared to the $8.3 million for the linked quarter, and is $389,000 below the $8.8 million reported for the prior year quarter ended December 31, 2019. The net interest margin for the current quarter was 3.19% and declined 42 basis points from 3.61% for the linked quarter and 131 basis points compared to 4.50% for the prior year quarter. The yield on earning assets for the current quarter is 3.63% compared to 4.11% and 5.11% for the two comparative periods, respectively. The cost of funds has declined to 0.43% for current period compared to 0.50% for Q3 2020 and 0.62% from the prior year quarter.

Net interest margins have been impacted all year by the lower interest rate environment, diminished loan demand outside of the PPP program and an unprecedented surge in deposit levels causing high levels of liquidity. We experienced an increase in deposits between September 30 and December 31 of $203.4 million. On the loan side, we are receiving PPP loan forgiveness proceeds, experiencing payoffs from insurance proceeds for residential homes destroyed in the hurricanes and have paydowns on seasonal agriculture loans. All of this excess liquidity is being invested in interest-bearing deposit accounts with correspondent banks and low yielding investment securities. While there has been an incremental improvement in net interest income dollars compared with the linked quarter, the net interest margin has been negatively impacted.

For the twelve-month period ended December 31, 2020, net interest income is $34.0 million, down $1.1 million from $35.1 million for the year-ended December 31, 2019. Net interest margin declined during the current twelve-month period to 3.90% from 4.49% for the prior year comparative period.

Non-Interest Income

Total non-interest income is $3.0 million for the current three-month period compared to $2.9 million for the linked quarter and $2.4 million for the prior year quarter. Service charges and fees associated with deposit accounts grew to $1.9 million from $1.7 million for the linked quarter, and were $82,000 more than the $1.8 million recorded for the prior year quarter. While NSF fees continue to lag levels seen in the quarters of previous years, interchange revenue on debit card usage has grown significantly. Interchange revenue for the current quarter is $1.1 million and reflects a $187,000 or 21% increase over the linked quarter and a $292,000 or 37% increase over the prior year comparative quarter.

Hurricanes Laura and Delta that hit several weeks apart, disrupted the residential real estate market in southwest Louisiana during the fourth quarter. Homes under contract that were damaged needed to be repaired and re-inspected prior to closing mortgage loans. Because of building material and labor scarcity, it did have an impact on our mortgage revenue for the three-months ended December 31, 2020. Gains from the sale of originated mortgage loans in the current quarter are $249,000 compared to $280,000 for the linked quarter and $116,000 in the quarter ended December 31, 2019. Rates on mortgage loans remain at attractive levels and we believe as southwest Louisiana begins to recover from the hurricanes, demand for new residential housing construction and purchase will pick-up sharply.

Other non-interest income is $893,000 for the current quarter compared to $842,000 for the linked quarter and $447,000 for the prior year quarter. Revenue from our Trust and Wealth Management Divisions were $142,000 and $139,000, respectively, reflecting increases over both the linked and prior year quarter results. Results for the current quarter includes a gain from disposal of fixed assets of $454,000 and the third quarter 2020 results include a $252,000 gain on the sale of investment securities. There were no non-recurring revenue items for the December 31, 2019 quarter.

Non-interest income for the twelve-month period ended December 31, 2020 was $10.5 million, an increase of $609,000 from the $9.9 million reported for the comparative 2019 period. The uncertainty of the pandemic led to more cautious customer behaviors and reduced NSF fees and service charges by $460,000 and $94,000, respectively. These decreases were partially offset by a $467,000 increase in debit card interchange income. Gain on the sale of originated mortgage loans was $365,000 higher than 2019 due to a favorable interest rate environment and greater resources directed to that area of the Bank. Both periods include non-recurring gains on the sale of investment securities of $252,000 for the current period and $393,000 for the prior year period. Gains on the disposal of fixed assets are $506,000 and $25,000 for 2020 and 2019, respectively.

Non-Interest Expense

Total non-interest expense is $8.5 million for the current quarter compared to $8.3 million for linked quarter and $8.4 million for the fourth quarter of 2019. Salary and benefits expense is the largest component of non-interest expenses and is $4.5 million for the current and linked periods compared to $4.4 million for Q4 2019. Current quarter expenses includes a severance payment made to a former contractual employee who is no longer with the Company.

Occupancy expense has remained relatively stable at $1.3 million for the current and linked quarters compared with $1.5 million for the prior year quarter. Data processing expense is $910,000 for the current quarter compared to $899,000 for the linked quarter and $815,000 from a year ago. The increase reflects greater account volume as well as additional products, services and enhancements. Marketing, business development and public relations expenses total $362,000 in the current quarter compared to $275,000 in the linked quarter and $414,000 for the prior year quarter. Expenses for the current quarter reflect marketing associated with a new branch office located in New Iberia, LA and costs associated with our Christmas Club product. Other non-interest expenses were $1.5 million for the current quarter compared to $1.2 million for the linked quarter and $1.3 million for the prior year quarter. The largest components of other non-interest expenses include professional fees, FDIC insurance premiums, telecommunication costs, and losses associated with fraud. Net losses on the sale of OREO are $45,000, $3,000 and $1,000 for the three comparative periods, respectively.

Non-interest expenses for the twelve-month period ended December 31, 2020 are $33.5 million, reflecting a $210,000 decrease compared to $33.7 million for the prior year. Decreases in occupancy, marketing and business development, amortization of core deposit intangibles, professional fees and travel were partially offset by increases in salary and employee benefits and data processing. Losses on the sale of OREO for the current and prior twelve-month periods are $114,000 and $221,000, respectively.

Income tax expense is $424,000 for the current quarter compared to $234,000 for the Q3 2020 and $351,000 for Q4 2019. Pre-tax income in the current quarter was higher than the two comparative quarters. Income tax expense for 2020 is $1.1 million with an effective rate of 13.82% compared to $1.7 million and 16.11% for the prior year twelve-month period. The decrease in effective tax rate is primarily due to an increase in tax-exempt income from municipal securities and bank owned life insurance investments.

Balance Sheet

Total assets are $1.3 billion at December 31, 2020, reflecting a $402.7 million or 46% increase over the $885.0 million at December 31, 2019. Categories experiencing the largest increases include interest-bearing deposits with banks up $229.6 million, investment securities are up $170.6 million and loans held for investment increased by $9.5 million. After experiencing total asset growth in Q1 of $29.4 million, total assets grew by $112.8 million, $53.6 million and $206.9 million in Q2, Q3 and Q4, respectively. Growth in the second quarter of 2020 was primarily the result of stimulus from the government in the form of direct payments to individuals and families, as well as PPP loans to small businesses. Fourth quarter growth was due, in part, to insurance proceeds flowing into southwest Louisiana for hurricane damage sustained in the late summer and early fall. Property damage recovery efforts have been hindered by an undersupply of both labor and building materials. As recovery efforts progress, we believe the need for financing will begin to increase and provide opportunities for loan growth.

Total deposits are $1.2 billion at December 31, 2020, reflecting a $391.4 million or 51% increase over the $772.1 million reported at year end 2019. Non-interest bearing demand deposits increased by $179.9 million or 67% year over year. Balances in savings, interest-bearing demand, time and money market have increased by $104.2 million, $85.6 million, $11.4 million, and $10.3 million, respectively. While deposit growth was primarily attributable to stimulus and hurricanes, the Company experienced good growth in core, non-maturity deposits during the year. For 2020, we opened over 7,400 new non-maturity accounts with average opening balances of more than $11,000.

Other liabilities increased by approximately $1.4 million to $25.5 million at December 31, 2020. The increase is primarily due to a larger deferred tax liability stemming from the unrealized gain on investment securities.

Stockholders' equity increased by $9.8 million to $98.7 million at December 31, 2020 from $88.9 million at December 31, 2019. The increase is primarily comprised of 2020 net income of $7.2 million, plus the increase in other comprehensive income of $5.3 million, less the dividends paid to common shareholders of $2.8 million. The tangible equity to assets ratio decreased to 7.40% at December 31, 2020 from 9.46% at December 31, 2019 due to our significant asset growth. There were 1,558,757 common shares outstanding at December 31, 2020 and 1,560,000 shares outstanding at December 31, 2019. Tangible book value per common share increased to $60.65 at December 31, 2020 compared to $54.28 at December 31, 2019.

Key Performance Ratios

Return on average assets (ROA) improved in the current quarter to 0.76% compared to 0.65% for the linked quarter and 0.95% for the prior year quarter. Return on average equity (ROE) is 10.16%, 7.33% and 9.89% for the three comparative quarters ended December 2020, September 2020 and December 2019, respectively. ROA and ROE for the twelve-month periods ended December 31, 2020 and 2019 were 0.72% and 1.02%, and 7.89% and 10.85%, 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.

(More)

(OTCQX: JDVB)

CONTACT:

JD Bancshares, Inc.
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
Dec 2020

Actual
Dec 2019

$ Variance

% Variance

Assets

Cash and due from banks

23,526,805

30,370,742

(6,843,937)

(22.5)

Interest bearing deposits with banks

241,606,805

11,982,637

229,624,168

1,916.3

Investment Securities - Taxable

218,990,753

69,127,279

149,863,474

216.8

Investment Securities - Tax-exempt

121,492,318

100,803,434

20,688,884

20.5

Mortgage loans held for sale

918,649

1,041,433

(122,784)

(11.8)

Loans, net of unearned income

630,199,440

620,734,159

9,465,281

1.5

Less: Allowance for loan losses

(8,583,238)

(6,609,790)

(1,973,448)

(29.9)

Premises and equipment, net

23,130,055

24,335,806

(1,205,751)

(5.0)

Accrued interest receivable

4,837,067

3,456,611

1,380,456

39.9

Other real estate

290,700

955,977

(665,277)

(69.6)

Other assets

31,351,043

28,850,470

2,500,573

8.7

Total Assets

1,287,760,397

885,048,756

402,711,640

45.5

Liabilities

Non-Interest Bearing Deposits

448,228,877

268,308,603

179,920,274

67.1

Interest bearing demand deposits

244,337,657

158,753,030

85,584,627

53.9

Savings and Money Market Deposits

345,297,866

230,802,149

114,495,716

49.6

Time Deposits - Retail

125,681,460

114,239,259

11,442,201

10.0

Total Deposits

1,163,545,860

772,103,042

391,442,819

50.7

Accrued expenses and other liabilities

4,962,953

3,582,138

1,380,816

38.5

FHLB Advances

2,763,431

3,011,367

(247,937

)

(8.2

)

Other Borrowings

17,768,330

17,490,445

277,885

1.6

Total Liabilities

1,189,040,574

796,186,992

392,853,583

49.3

Equity

Common stock

9,742,231

9,750,000

(7,769

)

(0.1

)

Capital surplus

3,790,069

3,598,000

192,069

5.3

Retained earnings

71,579,869

65,644,694

5,935,175

9.0

Accumulated other comprehensive income (loss)

6,606,445

1,270,276

5,336,168

420.1

Less: Notes Receivable common stock

(202,500

)

(349,050

)

146,550

42.0

Net Income

7,203,708

8,947,844

(1,744,136

)

(19.5

)

Total Equity

98,719,822

88,861,765

9,858,058

11.1

Total Liabilities & Equity

1,287,760,397

885,048,756

402,711,640

45.5

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

QTD
Actual
Dec 2020

QTD
Actual
Sep 2020

$ Variance

% Variance

QTD
Actual
Dec 2019

$ Variance

% Variance

Interest Income

Interest on Loans

8,329,343

8,216,991

112,351

1.4

8,760,270

(430,927)

(4.9)

Mortgage Loans Held For Sale

9,441

12,876

(3,435)

(26.7)

5,833

3,608

61.9

Interest on deposits with banks

51,956

77,917

(25,961)

(33.3)

170,695

(118,739)

(69.6)

Investment Securities - Taxable

507,798

462,296

45,502

9.8

372,304

135,493

36.4

Investment Securities - Tax-exempt

735,946

698,208

37,738

5.4

751,889

(15,943)

(2.1)

Total Interest Income

9,634,483

9,468,288

166,195

1.8

10,060,991

(426,508)

(4.2)

Interest Expense

Interest bearing demand deposits

248,121

219,666

28,455

13.0

233,893

14,228

6.1

Savings and Money Market Deposits

178,807

164,187

14,620

8.9

208,191

(29,384)

(14.1)

Time Deposits - Retail

396,605

420,346

(23,741)

(5.6)

447,580

(50,976)

(11.4)

Total Interest Expense on Deposits

823,533

804,199

19,334

2.4

889,664

(66,132)

(7.4)

FHLB Advances

30,655

29,887

768

2.6

32,041

(1,386)

(4.3)

Interest on other borrowings

338,674

338,534

140

-

308,784

29,890

9.7

Total Interest Expense

1,192,862

1,172,621

20,241

1.7

1,230,489

(37,627)

(3.1)

Net Interest Income

8,441,622

8,295,668

145,954

1.8

8,830,502

(388,880)

(4.4)

Provision for loan losses

190,000

958,000

(768,000)

(80.2)

336,425

(146,425)

(43.5)

Net In. Inc. After Prov. for Loan Losses

8,251,622

7,337,668

913,954

12.5

8,494,077

(242,455)

(2.9)

Non Interest Income

Service charges and fees

1,871,350

1,732,995

138,355

8.0

1,789,567

81,783

4.6

Mortgage loan and related fees

249,131

280,115

(30,984)

(11.1)

115,936

133,195

114.9

Other noninterest income

893,455

841,934

51,521

6.1

447,383

446,072

99.7

Total Non Interest Income

3,013,936

2,855,043

158,892

5.6

2,352,886

661,050

28.1

Non Interest Expense

Salaries and employee benefits

4,467,426

4,543,931

(76,505)

(1.7)

4,359,527

107,899

2.5

Occupancy

1,329,177

1,321,475

7,702

0.6

1,509,467

(180,290)

(11.9)

Advertising and public relations

362,350

274,592

87,758

32.0

413,783

(51,433)

(12.4)

Data Processing

909,798

899,379

10,419

1.2

814,835

94,963

11.7

Other noninterest expense

1,469,362

1,225,544

243,818

19.9

1,308,835

160,527

12.3

Total Non Interest Expense

8,538,113

8,264,921

273,192

3.3

8,406,447

131,666

1.6

Income Before Taxes

2,727,444

1,927,790

799,654

41.5

2,440,515

286,929

11.8

Income taxes

424,365

233,869

190,496

81.5

350,509

73,856

21.1

Net Income

2,303,079

1,693,921

609,158

36.0

2,090,006

213,073

10.2

Per common share data:

Earnings

$

1.48

$

1.09

$

1.34

Weighted average number of shares outstanding

1,559,810

1,560,000

1,559,156

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

YTD
Actual
Dec 2020

YTD
Actual
Dec 2019

$ Variance

% Variance

Interest Income

Interest on Loans

33,919,387

34,729,829

(810,443)

(2.3)

Mortgage Loans Held For Sale

35,769

21,633

14,137

65.3

Funds Transfer Interest

-

98

(98)

(100.0)

Interest on deposits with banks

274,095

771,517

(497,422)

(64.5)

Investment Securities - Taxable

1,829,762

2,054,132

(224,370)

(10.9)

Investment Securities - Tax-exempt

2,863,868

2,381,914

481,954

20.2

Total Interest Income

38,922,881

39,959,123

(1,036,242)

(2.6)

Interest Expense

Interest bearing demand deposits

911,878

931,466

(19,588)

(2.1)

Savings and Money Market Deposits

728,528

760,719

(32,191)

(4.2)

Time Deposits - Retail

1,742,962

1,515,533

227,429

15.0

Total Interest Expense on Deposits

3,383,368

3,207,717

175,651

5.5

FHLB Advances

151,948

382,205

(230,257)

(60.2)

Interest on other borrowings

1,348,658

1,236,055

112,603

9.1

Total Interest Expense

4,883,973

4,825,977

57,997

1.2

Net Interest Income

34,038,908

35,133,146

(1,094,238)

(3.1)

Provision for loan losses

2,728,000

696,425

2,031,575

291.7

Net In. Inc. After Prov. for Loan Losses

31,310,908

34,436,722

(3,125,813)

(9.1)

Non Interest Income

Service charges and fees

6,950,118

7,034,024

(83,906)

(1.2)

Mortgage loan and related fees

929,815

565,132

364,682

64.5

Other noninterest income

2,639,137

2,311,065

328,071

14.2

Total Non Interest Income

10,519,069

9,910,221

608,847

6.1

Non Interest Expense

Salaries and employee benefits

18,171,519

18,120,719

50,800

0.3

Occupancy

5,212,760

5,497,242

(284,482)

(5.2)

Advertising and public relations

1,353,780

1,687,226

(333,446)

(19.8)

Data Processing

3,684,994

3,084,244

600,750

19.5

Other noninterest expense

5,047,609

5,291,135

(243,526)

(4.6)

Total Non Interest Expense

33,470,662

33,680,566

(209,903)

(0.6)

Income Before Taxes

8,359,315

10,666,377

(2,307,063)

(21.6)

Income taxes

1,155,606

1,718,533

(562,927)

(32.8)

Net Income

7,203,708

8,947,844

(1,744,136)

(19.5)

Per common share data:

Earnings

$

4.62

$

5.74

Weighted average number of shares outstanding

1,559,952

1,559,156

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

Average Yield and Rate

Average Funds

Interest Income/Expense

QTD
Actual
Dec 2020

QTD
Actual
Sep 2020

Change

QTD
Actual
Dec 2020

QTD
Actual
Sep 2020

Change

QTD
Actual
Dec 2020

QTD
Actual
Sep 2020

Change

Earning Assets

Loans

5.12

4.93

0.19

647,367,342

663,035,980

(15,668,638

)

8,329,343

8,216,991

112,351

Loan fees

-

-

-

-

-

-

-

-

-

Loans with fees

5.12

4.93

0.19

647,367,342

663,035,980

(15,668,638)

8,329,343

8,216,991

112,351

Mortgage loans held for sale

3.05

3.20

(0.15)

1,238,141

1,609,449

(371,308)

9,441

12,876

(3,435)

Deposits with banks

0.13

0.44

(0.31)

164,779,741

70,630,360

94,149,381

51,956

77,917

(25,961)

Investment securities - taxable

1.28

1.79

(0.51)

158,431,627

103,530,798

54,900,829

507,798

462,296

45,502

Investment securities - tax-exempt

3.51

3.68

(0.17)

106,214,538

96,064,395

10,150,143

735,946

698,208

37,738

Total Earning Assets

3.63

4.11

(0.48)

1,078,031,390

934,870,983

143,160,406

9,634,483

9,468,288

166,195

Interest bearing liabilities

Interest bearing demand

0.47

0.52

(0.05)

212,156,507

44,271,214

248,121

219,666

28,455

Savings and Money Market

0.22

0.23

(0.01)

325,458,543

280,009,740

45,448,803

178,807

164,187

14,620

Time deposits - Retail

1.28

1.40

(0.12)

122,874,110

119,330,425

3,543,685

396,605

420,346

(23,741)

Total interest bearing deposits

0.50

0.56

(0.06)

660,489,160

567,225,457

93,263,702

823,533

804,199

19,334

Federal home Loan Bank advances

4.30

4.10

0.20

2,786,576

2,854,283

(67,707)

30,655

29,887

768

Other borrowings

7.49

7.53

(0.04)

17,701,345

17,580,872

120,473

338,674

338,534

140

Total borrowed funds

7.05

7.05

-

20,487,921

20,435,155

52,766

369,329

368,421

908

Total interest-bearing liabilities

0.69

0.79

(0.10)

680,977,080

587,660,612

93,316,468

1,192,862

1,172,621

20,241

Net interest rate spread

2.94

3.32

(0.38)

8,441,622

8,295,668

145,954

Effect of non-interest bearing deposits

(0.26)

(0.29)

0.03

418,451,260

346,974,631

71,476,629

Cost of funds

0.43

0.50

(0.07)

Net interest margin

3.19

3.61

(0.42)

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

Average Yield and Rate

Average Funds

Interest Income/Expense

QTD
Actual
Dec 2020

QTD
Actual
Dec 2019

Change

QTD
Actual
Dec 2020

QTD
Actual
Dec 2019

Change

QTD
Actual
Dec 2020

QTD
Actual
Dec 2019

Change

Earning Assets

Loans

5.12

5.60

(0.48)

647,367,342

620,862,377

26,504,965

8,329,343

8,760,270

(430,927)

Loan fees

-

-

-

-

-

-

-

-

-

Loans with fees

5.12

5.60

(0.48)

647,367,342

620,862,377

26,504,965

8,329,343

8,760,270

(430,927)

Mortgage loans held for sale

3.05

3.22

(0.17)

1,238,141

723,689

514,452

9,441

5,833

3,608

Deposits with banks

0.13

3.00

(2.87)

164,779,741

22,563,308

142,216,434

51,956

170,695

(118,739)

Investment securities - taxable

1.28

2.85

(1.57)

158,431,627

52,199,230

106,232,397

507,798

372,304

135,493

Investment securities - tax-exempt

3.51

3.76

(0.25)

106,214,538

101,159,303

5,055,235

735,946

751,889

(15,943)

Total Earning Assets

3.63

5.11

(1.48)

1,078,031,390

797,507,906

280,523,484

9,634,483

10,060,991

(426,508)

Interest bearing liabilities

Interest bearing demand

0.47

0.63

(0.16)

212,156,507

146,401,114

65,755,393

248,121

233,893

14,228

Savings and Money Market

0.22

0.36

(0.14)

325,458,543

230,363,814

95,094,729

178,807

208,191

(29,384)

Time deposits - Retail

1.28

1.55

(0.27)

122,874,110

114,297,512

8,576,598

396,605

447,580

(50,976)

Total interest bearing deposits

0.50

0.72

(0.22)

660,489,160

491,062,439

169,426,721

823,533

889,664

(66,132)

Federal home Loan Bank advances

4.30

4.12

0.18

2,786,576

3,041,590

(255,014)

30,655

32,041

(1,386)

Other borrowings

7.49

6.86

0.63

17,701,345

17,618,871

82,474

338,674

308,784

29,890

Total borrowed funds

7.05

6.46

0.59

20,487,921

20,660,461

(172,540)

369,329

340,825

28,504

Total interest-bearing liabilities

0.69

0.95

(0.26)

680,977,080

511,722,900

169,254,180

1,192,862

1,230,489

(37,627)

Net interest rate spread

2.94

4.16

(1.22)

8,441,622

8,830,502

(388,880)

Effect of non-interest bearing deposits

(0.26)

(0.33)

0.07

418,451,260

272,302,858

146,148,402

Cost of funds

0.43

0.62

(0.19)

Net interest margin

3.19

4.50

(1.31)

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

Average Yield and Rate

Average Funds

Interest Income/Expense

YTD
Actual
Dec 2020

YTD
Actual
Dec 2019

Change

YTD
Actual
Dec 2020

YTD
Actual
Dec 2019

Change

YTD
Actual
Dec 2020

YTD
Actual
Dec 2019

Change

Earning Assets

Loans

5.44

5.59

(0.15)

623,601,364

621,082,474

2,518,890

33,919,387

34,729,829

(810,443)

Loan fees

-

-

-

-

-

-

-

98

(98)

Loans with fees

5.44

5.59

(0.15)

623,601,364

621,082,474

2,518,890

33,919,387

34,729,928

(810,541)

Mortgage loans held for sale

3.04

3.96

(0.92)

1,175,155

545,893

629,262

35,769

21,633

14,137

Deposits with banks

0.36

2.96

(2.60)

76,803,821

26,035,150

50,768,671

274,095

771,517

(497,422)

Investment securities - taxable

1.89

2.81

(0.92)

96,704,529

73,116,159

23,588,371

1,829,762

2,054,132

(224,370)

Investment securities - tax-exempt

3.80

4.00

(0.20)

95,469,025

75,463,086

20,005,939

2,863,868

2,381,914

481,954

Total Earning Assets

4.44

5.10

(0.66)

893,753,895

796,242,761

97,511,134

38,922,881

39,959,123

(1,036,242)

Interest bearing liabilities

Interest bearing demand

0.54

0.64

(0.10)

169,288,817

146,335,592

22,953,225

911,878

931,466

(19,588)

Savings and Money Market

0.27

0.33

(0.06)

268,445,621

228,037,466

40,408,156

728,528

760,719

(32,191)

Time deposits - Retail

1.53

1.33

0.20

113,927,221

113,721,702

205,519

1,742,962

1,515,533

227,429

Time Deposits - Wholesale

-

-

-

-

(74)

74

-

-

-

Total interest bearing deposits

0.61

0.66

(0.05)

551,661,659

488,094,685

63,566,974

3,383,368

3,207,717

175,651

Federal home Loan Bank advances

2.36

2.87

(0.51)

6,320,114

13,156,295

(6,836,181)

151,948

382,205

(230,257)

Other borrowings

7.55

6.90

0.65

17,566,949

17,661,093

(94,144)

1,348,658

1,236,055

112,603

Total borrowed funds

6.18

5.18

1.00

23,887,063

30,817,388

(6,930,325)

1,500,605

1,618,260

(117,654)

Total interest-bearing liabilities

0.84

0.93

(0.08)

575,548,723

518,912,074

56,636,649

4,883,973

4,825,977

57,997

Net interest rate spread

3.60

4.17

(0.58)

34,038,908

35,133,146

(1,094,238)

Effect of non-interest bearing deposits

(0.30)

(0.32)

0.01

327,129,838

265,386,375

61,743,463

Cost of funds

0.54

0.61

(0.07)

Net interest margin

3.90

4.49

(0.60)

JD BANCSHARES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION

Financial Ratios

For the Twelve

For the Twelve

For the Qtr

For the Qtr

For the Qtr

Months

Months

Ended

Ended

Ended

Ended

Ended

December 31,
2020

September 30,
2020

December 31,
2019

December 31,
2020

December 31,
2019

Performance Ratios

Return on Average Assets

0.76

%

0.65

%

0.95

%

0.72

%

1.02

%

Return on Average Equity

10.16

%

7.33

%

9.89

%

7.89

%

10.85

%

Earnings per Share

$

1.48

$

1.09

$

1.34

$

4.62

$

5.74

Net Interest Margin

3.19

%

3.61

%

4.50

%

3.90

%

4.49

%

Efficiency Ratio **

73.28

%

74.56

%

73.87

%

74.27

%

74.37

%

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

1.00

%

1.00

%

1.12

%

1.03

%

1.06

%

Non-Interest Expense as a % of Avg. Assets

3.18

%

3.18

%

3.90

%

3.59

%

3.87

%

As of

As of

December 31, 2020

December 31, 2019

Capital

Tier 1 Leverage Ratio

7.42

%

9.51

%

Common Equity Tier 1 Ratio

12.46

%

13.04

%

Tier 1 Risk-Based Capital Ratio

12.46

%

13.04

%

Total Risk-Based Capital Ratio

13.67

%

14.07

%

Tangible Equity / Total Assets

7.40

%

9.46

%

Tangible Book Value per Share

$

60.65

$

54.28

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

For the Qtr
Ended
December 31,
2020

For the Qtr
Ended
September 30,
2020

For the Qtr
Ended
December 31,
2019

For the Twelve
Months
Ended
December 31,
2020

For the Twelve Months Ended
December 31,
2019

Net Income (GAAP)

$

2,303,079

$

1,693,921

$

2,090,006

$

7,203,708

$

8,947,844

Provision for Loan Lossess

190,000

958,000

336,425

2,728,000

696,425

Net Loss on OREO

45,300

3,223

1,412

114,332

221,455

Gain on Casualty Loss

(454,270

)

-

(4,995

)

(506,389

)

(24,672

)

Less: Net Gain on Securities

-

(251,957

)

-

(251,957

)

(388,398

)

Income Tax Expense

424,365

233,869

350,509

1,155,606

1,718,533

Pre-tax, Pre-Provision Operating Income

$

2,508,474

$

2,637,056

$

2,773,357

$

10,443,300

$

11,171,187

** Non-recurring items are eliminated for this ratio

SOURCE: JD Bancshares, Inc.



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