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

Thursday, 21 January 2021 04:15 PM

JD Bancshares, Inc.

Topic:
Earnings

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.

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(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       167,885,293       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.

Topic:
Earnings
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