JD Bancshares, Inc. Reports Financial Results for Q3 2020

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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https://www.accesswire.com/611567/JD-Bancshares-Inc-Reports-Financial-Results-for-Q3-2020

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