JD Bancshares, Inc. Announces Improved Financial Results for Q2 2023

JENNINGS, LA / ACCESSWIRE / July 20, 2023 / 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 six- month periods ended June 30, 2023.

Net income for the three-month period ended June 30, 2023 is $3,216,519 or $0.94 per common share compared to $2,085,229 or $0.61 per common share for the linked quarter ended March 31, 2023 and $3,137,156 or $0.92 per share for the prior year quarter ended June 30, 2022. Pre-tax, pre-provision (PTPP) operating income for the quarter ended June 30, 2023 is $4,373,181, reflecting a 2% increase over the $4,282,092 for the linked quarter and 30% over the $3,373,737 for the prior year quarter. PTPP operating income excludes taxes, provision for credit losses, net gains or losses on the sale of other real estate owned (OREO), net losses on the sale of investment securities and other non-recurring revenue and expense items. The increase in current period PTPP operating income compared to both the linked and prior year periods is driven primarily by stronger interest income resulting from a higher volume of average loans outstanding at higher average yields and is partially offset by increased interest and non-interest expenses.

For the six-month period ended June 30, 2023, net income is $5,301,748 or $1.55 per share compared to $5,245,223 or $1.53 per share for the prior year comparative period. PTPP operating income for the two comparative six-month periods reflects a 53% increase to $8,655,274 compared to $5,664,719 for the prior year period. The improvement is primarily due to a sharp increase in net interest income and partially offset by increased non-interest expenses.

Bruce Elder, President and CEO, commented, "As I reviewed my comments in the press release from one year ago, I stated that current economic conditions could have an impact on loan demand and increase the Company's operating costs. Although total loans outstanding have declined slightly year-to-date and operating expenses have increased, we are pleased to report improved financial results over those of the comparative periods. The yield on our earning assets over the current six-month period has improved by 102 basis points when compared with that of a year ago, which is a significant contributor to generating more than $4.8 million in additional interest income. This increase more than offset the higher operating costs and on a pre-provision operating basis produced almost $3.0 million of incremental pre-tax earnings. We have experienced some unusually large loan principal paydowns in 2023 which has offset some solid loan production, but remain encouraged at our ability to generate loan growth in the second half of the year."

Elder continued by commenting, "Although non-performing assets have declined since year-end, we are carefully monitoring the portfolio for potential problems and will take appropriate actions when necessary. This will become even more important as we move through the remainder of 2023 into early 2024 when many economists predict a mild recession."

Asset Quality

Loans past due 30 to 89 days are $7.1 million representing 1.06% of the total loan portfolio at June 30, 2023 compared to $2.3 million or 0.35% at December 31, 2022. The sharp increase is primarily due to slow payments on a number of loans totaling over $4.6 million to one related borrower. We have initiated steps toward addressing this issue which may result in a future progression to non-accrual status and OREO prior to final resolution. Total nonperforming assets, including loans on non-accrual status, OREO and repossessed assets declined to $6.7 million at June 30, 2023 from $14.3 million at December 31, 2022. Loans on non-accrual status declined to $5.7 million from $13.4 million at year-end 2022. OREO increased to $940,000 from $863,000 and there are $37,000 in repossessed assets at June 30, 2023 compared to none at year-end. 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.

Beginning January 1, 2023, the Company is applying the current expected credit loss (CECL) method to account for the allowance for credit losses (ALLL). The provision for credit losses is $364,000 for the current quarter compared to $602,000 for the linked quarter and no provision recorded in the prior year quarter. The components of the provision for the current quarter are $595,000 for loans, $50,000 for the subordinated debt of a failed institution less a reversal of $281,000 for unfunded commitments. The components of the linked quarter provision is $82,000 for loans, $448,000 for the subordinated debt and $71,000 for unfunded commitments. In the March 31, 2023 press release, the provisions associated with the subordinated debt and unfunded commitments were initially classified as non-interest expense.

The ALLL is $10.1 million at June 30, 2023 or 1.50% of total loans compared to $9.2 million at December 31, 2022 or 1.32% of total loans. Net charge-offs are $363,000 for the first six months of 2023 compared to net recoveries of $342,000 for the comparative 2022 period. In the second quarter of 2022 during a loan system parameters review, it was noted that payments collected and applied to loans previously charged-off were not properly accounted for as recoveries. As a result of correcting this issue, recoveries of $488,000 were recognized in the six-month period ended June 30, 2022. 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.

The provision for credit losses for the two six-month periods ended June 30, 2023 and 2022 are $966,000 and $0, respectively. The components of the 2023 provision include $676,000 for loans outstanding, $499,000 for the subordinated debt investment less a reversal of $209,000 for unfunded commitments.

Net Interest Income

For the quarter ended June 30, 2023, net interest income is $11.3 million, reflecting a $358,000 or 3% increase over the $10.9 million for the linked March quarter and a $1.4 million or 14% increase over the $9.9 million reported for the prior year quarter. When comparing the current quarter net interest income to both comparative quarters, the increase is primarily due to an increase in the volume of and yield on average outstanding loans and partially offset by a higher cost of interest-bearing liabilities.

Total interest income for the current quarter is $13.2 million compared to $12.3 million for the linked quarter and $10.8 million for the prior year quarter. Interest income on loans for the current quarter is $10.3 million reflecting a $1.1 million increase compared to the linked quarter and increasing by $1.8 million compared to the prior year quarter. Average loans outstanding are $674.8 million, $667.3 million and $643.2 million, respectively for the three periods. The yield on loans increased to 6.11% in the current quarter from 5.60% in linked quarter and 5.08% in the prior year. Interest income from other earning assets is $2.9 million for Q2 2023, $3.0 million for Q1 2023 and $2.3 million in Q2 2022. The decline between current and linked quarters is attributable to a reduction in average other earning assets outstanding. When comparing current to prior year, favorable impacts from increases in yields on mortgages held for sale, deposits with banks and investment securities more than offset the decline in average other earning assets year over year. Interest income for the quarter ended June 30, 2022 includes $291,000 in non-recurring income from the correction of the loan system parameter issue and $367,000 in recognized loan origination fees from the Paycheck Protection Program (PPP).

Total interest expense is $1.9 million for the current quarter, $1.3 million in the linked quarter and $933,000 in the prior year quarter. Despite a decline in average interest-bearing deposits outstanding between the current period and both the linked and prior year periods, the higher cost of deposits caused increases in interest expense. The cost of interest-bearing deposits is 0.70% for the current quarter compared to 0.47% and 0.28% for the linked and prior year quarters, respectively. The higher deposit interest rates, coupled with an average rate on borrowed funds of 4.39%, caused an increase in the average cost of total interest-bearing liabilities to 0.90% for the current quarter from 0.61% for Q1 2023 and 0.41% for Q2 2022.

The increase in the yield on earning assets was more pronounced than the increase in the cost of funds resulting in a net interest margin of 3.92% for the current quarter, reflecting a 6 basis point increase over the 3.86% margin in Q1 2023 and a 65 basis point increase over the 3.27% margin for Q2 2022. While we experienced a slight margin expansion over the past three months, as the Federal Reserve Open Market Committee (FOMC) continues its fight against inflation, we believe there could be some compression on the net interest margin in the coming periods.

Net interest income is $22.2 million for the six-month period ended June 30, 2023 compared to $18.7 million for the prior year period ended June 30, 2022. Net interest margin for the current six-month period is 3.86% compared to 3.08% for the comparative 2022 period. The total yield on earning assets increased to 4.43% from 3.41% due to the increase in loans. The cost of interest-bearing liabilities increased to 0.76% from 0.43%. During the six-month period ended June 30, 2022, we recognized $573,000 in PPP origination fees.

Non-Interest Income

Total non-interest income is $3.0 million for the current quarter compared to $1.5 million for the linked March 2023 quarter and $3.1 million for the prior year quarter. Non-interest income for the first quarter of 2023 was adversely impacted by a non-recurring $1.3 million loss on the sale of $26.3 million in available for sale investment securities.

Service charges and fees associated with deposit accounts accounted for the largest category of non-interest income and is $2.2 million in both the current and linked quarters and $2.3 million in the prior year quarter. Interchange revenue from debit card usage remains relatively stable at $1.3 million for each of the comparative quarters. NSF fees totaled $696,000 for the quarter ended June 30, 2023 compared to $682,000 for the linked quarter and $756,000 for the prior year quarter. Given new regulatory interpretations regarding NSF items, the Company made the decision to discontinue charging additional fees on items returned and then re-presented. Service charges on deposit accounts remain relatively constant at $217,000, $226,000 and $226,000 for the three comparative periods, respectively.

Revenue from the sale of mortgage loans is $152,000 for the current quarter compared to $110,000 for the linked quarter and $281,000 for the prior year quarter. The sharp increase in mortgage rates beginning in March 2022 had an adverse impact on the volume of mortgages being originated. However, higher rates have also caused people to delay moving into bigger, more expensive homes which has stunted existing home supply. Demand for housing remains strong and as people become more accustomed to the new normal rate environment, mortgage originations are picking up.

Other non-interest income is $587,000 for the current quarter, $(845,000) for the linked quarter and $463,000 for the prior year quarter. The largest components of other non-interest income are revenues from trust services and wealth management. The total of these two revenue streams is $272,000, $213,000 and $243,000 for the three periods, respectively. For the March 31, 2023 quarter, other non-interest income includes the aforementioned $1.3 million realized loss on the securities sale.

Non-interest income for the six-month period ended June 30, 2023 is $4.4 million compared to $5.7 million for the prior year six-month period. Comparing the current six-month period to the prior year period, service charges and fees on deposit accounts are $101,000 lower, gains on the sale of mortgage loans are $258,000 lower and other non-interest income is $921,000 lower. Other non-interest income for the current six-month period includes the $1.3 million realized loss on the sale of securities.

Non-Interest Expense

Total non-interest expense is $10.0 million for the quarter ended June 30, 2023 compared to $9.4 million and $9.2 million for the March 2023 and June 2022 quarters, respectively. Salary and employee benefits expense for the current quarter is $5.2 million, $4.9 million for the linked quarter and $4.7 million for the prior year quarter. We announced in June 2022 our intent to expand our Louisiana presence through loan and deposit production offices located in Baton Rouge and the Northshore. Those expansion efforts contributed to the increase in both salary and occupancy expense.

Occupancy expenses have remained relatively stable over the current and linked quarters at $1.4 million compared to $1.2 million for the prior year quarter. Advertising and public relations are $351,000, $303,000 and $390,000 for the three comparative quarters, respectively. Data processing expenses are $1.3 million in both the current and linked quarters reflecting an increase over the $1.2 million for Q2 2022. A portion of these increases are attributable to our expansion efforts.

Other non-interest expenses are $1.9 million for the Q2 2023, $1.5 million for Q1 2023 and $1.7 million for Q2 2022. The largest components of non-interest expenses are comprised of professional fees, FDIC insurance assessments, telecommunication expenses, accruals for ad valorem taxes and other miscellaneous losses. The increase between current and linked quarter is primarily due to the higher FDIC deposit insurance assessment rate and the reimbursement of NSF fees charged to customers on returned items presented for payment multiple times. The one-time, non-recurring expense associated with the reimbursement was $153,000. The three-month period ended June 30, 2022, includes $283,000 of losses associated with the sale of a building formerly used as a bank branch. The current quarter also includes $1,000 in losses on the sale of OREO.

Total non-interest expenses for the six-month period ended June 30, 2023 are $19.5 million, up $1.3 million or 7% from $18.2 million for the prior year. Increases in salaries and employee benefits, occupancy and data processing expenses of $790,000, $305,000 and $269,000 are partially offset by declines in advertising, public relations and other non-interest expenses. Non-recurring expenses for the two six-month periods mirror those previously discussed above in the quarterly analysis.

Income tax expense is $638,000 for the current quarter compared to $332,000 for the linked quarter and $613,000 for the June 2022 quarter. The increase is primarily due to growth in pre-tax income. The effective tax rate is 16.56% in the current quarter compared to 13.74% for the linked quarter and 16.34% in the prior year quarter. A greater percentage of total pre-tax income in the linked quarter is from tax-exempt sources resulting in a lower effective tax rate. Year-to-date, income tax expense is $970,000 with an effective rate of 15.47% compared to $1.0 million and 16.02% for the prior year six-month period.

Balance Sheet

Total assets are $1.2 billion at June 30, 2023, reflecting a $37.4 million or 3% decrease compared to December 31, 2022. Loans held for investment constitutes the largest asset category at $670.8 million and has declined by $1.1 million from $671.9 million reported at the prior year end. At the end of December 2022, we had a large borrowing relationship that was moved to a non-performing status. During the June 2023, the issue was resolved which resulted in the borrower making an $8.5 million principal curtailment. Investment securities declined by $33.1 million to $419.6 million from $452.7 million at December 31, 2022. The decline was the net result of principal paydowns of $38.1 million less a $5.0 million improvement in the fair market value of the portfolio. The remainder of the decrease in total assets was spread across cash and due from banks, premises and equipment, accrued interest receivable and other assets.

Over the past six months, total deposits decreased by $74.9 million or 7% and are $1.1 billion at both June 30, 2023 and December 31, 2022. Over the two calendar years 2020 and 2021, deposit levels increased by $429.3 million, in part due to US government stimulus and insurance proceeds paid out as a result of several hurricanes impacting southern Louisiana. The end of government stimulus, pent up demand from easing pandemic restrictions, inflationary impacts on goods and services, and customers making needed repairs to their properties have resulted in an outflow of money. Additionally, as interest rates have been increased on both money market and time deposits, there has been a shift from lower interest deposit products into these higher rate products. Interest bearing demand is down by $53.4 million, non-interest bearing demand is down by $26.4 million and savings deposits are down by $24.8 million. Offsetting these declines are increases of $15.1 million in time deposits and $14.5 million in money market account balances. Over the past twelve months, the number of active deposit accounts has increased by almost 1,500; however, the average balance per account has declined by just over $2,000 per account. While our deposits have shown a decline, we continue to see net growth in total accounts.

The total of all other liabilities increased by $31.2 million to $65.5 million from $34.3 million at December 31, 2022. The increase is primarily attributable to short-term borrowings in the amount of $30.0 million.

Stockholders' equity increased by $6.3 million to $63.4 million at June 30, 2023 from $57.1 million at December 31, 2022. The increase is attributed to the $5.3 million in net income and a $3.9 million improvement in the accumulated other comprehensive loss (AOCL), partially offset by $1.8 million in dividends paid to shareholders and a $1.2 million charge to retained earnings pursuant to the implementation of the CECL accounting change for credit losses. Total shares outstanding at June 30, 2023 are 3,419,560 compared to 3,420,560 at December 31, 2022. Tangible book value per share is currently $17.33 compared to $15.47 at December 31, 2022.

Key Performance Ratios

Return on average assets (ROA) is 1.07% for the current quarter compared to 0.70% for the linked quarter and 0.97% for the prior year quarter. ROA for the six-month period ended June 30, 2023 is 0.89% compared to 0.81% for the prior year period. Return on average equity (ROE) is 19.21% for the current three-month period, 14.74% for the linked period and 15.67% for the prior year period. ROE for the six-month period ended June 30, 2023 is 17.16% compared to 11.64% for the prior year period. ROA for the three-month period and six-month periods ended June 30, 2023 reflect higher levels of net income over the comparative periods. ROE for the current periods is positively impacted by higher levels of net income and lower book equity levels due to the AOCL.

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 south 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 and two Loan Production/Deposit Production offices located along the Interstate 10/12 corridor from Lake Charles to Mandeville, Louisiana. JD Bancshares, Inc. may be accessed on its website at jdbank.com .

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 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.

(OTCQX:JDVB)

For more information contact:

Bruce Elder (CEO) (337-246-5399
Paul Brummett (CFO) (337-246-5395)
Website: www.jdbank.com

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

		Actual Jun 2023				Actual Dec 2022				$ Variance				% Variance
Assets
Cash and due from banks			25,782,571				26,434,524				(651,953)				(2.5)
Interest bearing deposits with banks			21,056,706				21,855,505				(798,799)				(3.7)
Investment Securities - Taxable			291,402,179				321,185,999				(29,783,820)				(9.3)
Investment Securities - Tax-exempt			128,199,917				131,488,014				(3,288,097)				(2.5)
Mortgage loans held for sale			602,978				549,984				52,994				9.6
Loans, net of unearned income			670,855,145				671,942,133				(1,086,988)				(0.2)
Less: Allowance for credit losses			(10,094,306)				(9,208,070)				(886,236)				9.6
Premises and equipment, net			22,191,739				22,692,381				(500,642)				(2.2)
Accrued interest receivable			4,809,466				4,985,487				(176,021)				(3.5)
Other real estate			940,395				863,101				77,294				9.0
Other assets			42,322,614				42,656,191				(333,577)				(0.8)
Total Assets			1,198,069,404				1,235,445,249				(37,375,845)				(3.0)
Liabilities
Non-Interest Bearing Deposits			255,570,021				281,921,238				(26,351,217)				(9.3)
Interest bearing demand deposits			330,398,670				383,786,414				(53,387,744)				(13.9)
Savings and Money Market Deposits			365,800,837				376,093,240				(10,292,403)				(2.7)
Time Deposits - Retail			117,328,287				102,193,314				15,134,973				14.8
Total Deposits			1,069,097,815				1,143,994,206				(74,896,391)				(6.5)
Accrued expenses and other liabilities			5,692,525				4,590,785				1,101,740				24.0
Other Borrowings			59,835,595				29,764,526				30,071,069				101.0
Total Liabilities			1,134,625,935				1,178,349,517				(43,723,582)				(3.7)
Equity
Common stock			21,372,250				21,378,500				(6,250)				(0.0)
3,419,560 shares outstanding at 6.30.23
3,420,560 shares outstanding at 12.31.22
Capital surplus			10,294,678				10,312,636				(17,958)				(0.2)
Retained earnings			79,130,047				76,844,905				2,285,142				3.0
Accumulated other comprehensive income (loss)			(46,927,397)				(50,873,123)				3,945,726				(7.8)
Less: Unearned common stock awards			(426,109)				(567,186)				141,077				(24.9)
Total Equity			63,443,469				57,095,732				6,347,737				11.1
Total Liabilities & Equity			1,198,069,404				1,235,445,249				(37,375,845)				(3.0)

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		QTD Actual Jun 2023			QTD Actual Mar 2023			$ Variance			% Variance			QTD Actual Jun 2022			$ Variance			% Variance
Interest Income
Interest on Loans			10,287,045			9,218,160			1,068,885			11.6			8,509,661			1,777,384			20.9
Mortgage Loans Held For Sale			11,239			5,774			5,465			94.6			11,180			59			0.5
Interest on deposits with banks			248,349			263,765			(15,416)			(5.8)			172,285			76,064			44.2
Investment Securities - Taxable			1,909,203			1,973,953			(64,750)			(3.3)			1,334,136			575,067			43.1
Investment Securities - Tax-exempt			785,478			796,132			(10,654)			(1.3)			806,146			(20,668)			(2.6)
Total Interest Income			13,241,314			12,257,784			983,530			8.0			10,833,408			2,407,906			22.2
Interest Expense
Interest bearing demand deposits			346,809			224,752			122,057			54.3			210,783			136,026			64.5
Savings and Money Market Deposits			502,290			427,055			75,235			17.6			197,234			305,056			154.7
Time Deposits - Retail			560,918			332,748			228,170			68.6			210,505			350,413			166.5
Total Interest Expense on Deposits			1,410,017			984,555			425,462			43.2			618,522			791,495			128.0
FHLB Advances			25,686			10,836			14,850			137.0			-			25,686			-
Interest on other borrowings			502,353			316,772			185,581			58.6			314,787			187,566			59.6
Total Interest Expense			1,938,056			1,312,163			625,893			47.7			933,309			1,004,747			107.7
Net Interest Income			11,303,258			10,945,620			357,638			3.3			9,900,099			1,403,159			14.2
Provision for credit losses			364,080			601,588			(237,508)			(39.5)			-			364,080			-
Net In. Inc. After Prov. for Credit Losses			10,939,178			10,344,032			595,146			5.8			9,900,099			1,039,079			10.5
Non Interest Income
Service charges and fees			2,217,554			2,228,042			(10,488)			(0.5			2,322,238			(104,684)			(4.5)
Mortgage loan and related fees			152,199			109,628			42,571			38.8			280,959			(128,760)			(45.8)
Other noninterest income			586,641			(844,977)			1,431,618			(169.4)			462,603			124,038			26.8
Total Non Interest Income			2,956,394			1,492,693			1,463,701			98.1			3,065,800			(109,406)			(3.6)
Non Interest Expense
Salaries and employee benefits			5,199,103			4,914,778			284,325			5.8			4,728,034			471,069			10.0
Occupancy			1,386,800			1,358,046			28,754			2.1			1,236,639			150,161			12.1
Advertising and public relations			351,454			303,290			48,164			15.9			389,976			(38,522)			(9.9)
Data Processing			1,251,898			1,295,130			(43,232)			(3.3)			1,126,778			125,120			11.1
Other noninterest expense			1,851,651			1,548,077			303,574			19.6			1,734,796			116,855			6.7
Total Non Interest Expense			10,040,906			9,419,321			621,585			6.6			9,216,223			824,683			8.9
Income Before Taxes			3,854,666			2,417,404			1,437,262			59.5			3,749,676			104,990			2.8
Income taxes			638,147			332,175			305,972			92.1			612,520			25,627			4.2
Net Income			3,216,519			2,085,229			1,131,290			54.3			3,137,156			79,363			2.5
Per common share data:
Earnings		$	0.94		$	0.61								$	0.92
Weighted average number of shares outstanding			3,420,549			3,420,560									3,420,677

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		YTD Actual Jun 2023				YTD Actual Jun 2022				$ Variance				% Variance
Interest Income
Interest on Loans			19,505,205				16,202,653				3,302,552				20.4
Mortgage Loans Held For Sale			17,013				17,846				(833)				(4.7)
Interest on deposits with banks			512,113				254,793				257,320				101.0
Investment Securities - Taxable			3,883,156				2,581,021				1,302,135				50.5
Investment Securities - Tax-exempt			1,581,610				1,597,162				(15,552)				(1.0)
Total Interest Income			25,499,097				20,653,475				4,845,622				23.5
Interest Expense
Interest bearing demand deposits			571,561				416,077				155,484				37.4
Savings and Money Market Deposits			929,346				409,708				519,638				126.8
Time Deposits - Retail			893,666				448,510				445,156				99.3
Total Interest Expense on Deposits			2,394,573				1,274,295				1,120,278				87.9
FHLB Advances			36,522				-				36,522				-
Interest on other borrowings			819,124				678,696				140,428				20.7
Total Interest Expense			3,250,219				1,952,991				1,297,228				66.4
Net Interest Income			22,248,878				18,700,484				3,548,394				19.0
Provision for credit losses			965,669				-				965,669				-
Net In. Inc. After Prov. for Credit Losses			21,283,209				18,700,484				2,582,725				13.8
Non Interest Income
Service charges and fees			4,445,597				4,546,870				(101,273)				(2.2)
Mortgage loan and related fees			261,827				519,871				(258,044)				(49.6)
Other noninterest income			(258,336)				663,110				(921,446)				(139.0)
Total Non Interest Income			4,449,088				5,729,851				(1,280,763)				(22.4)
Non Interest Expense
Salaries and employee benefits			10,113,881				9,324,213				789,668				8.5
Occupancy			2,744,846				2,439,969				304,877				12.5
Advertising and public relations			654,744				732,009				(77,265)				(10.6)
Data Processing			2,547,027				2,277,788				269,239				11.8
Other noninterest expense			3,399,729				3,410,587				(10,858)				(0.3)
Total Non Interest Expense			19,460,227				18,184,566				1,275,661				7.0
Income Before Taxes			6,272,070				6,245,769				26,301				0.4
Income taxes			970,322				1,000,546				(30,224)				(3.0)
Net Income			5,301,748				5,245,223				56,525				1.1
Per common share data:
Earnings		$	1.55			$	1.53
Weighted average number of shares outstanding			3,420,554				3,420,677

Note: Some items may have been reclassified from prior presentations

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

	Average Yield and Rate									Average Funds									Interest Income/Expense
	QTD Actual Jun 2023			QTD Actual Jun 2022			Change			QTD Actual Jun 2023			QTD Actual Jun 2022			Change			QTD Actual Jun 2023			QTD Actual Jun 2022			Change
Earning Assets
Loans		6.11			5.08			1.03			674,834,317			643,169,903			31,664,414			10,287,045			8,142,306			2,144,739
Loan fees		-			0.22			(0.22)			-			-			-			-			367,355			(367,355)
Loans with fees		6.11			5.30			0.80			674,834,317			643,169,903			31,664,414			10,287,045			8,509,661			1,777,384
Mortgage loans held for sale		7.06			4.62			2.44			636,757			967,685			(330,928)			11,239			11,180			59
Deposits with banks		6.74			1.00			5.74			14,782,907			69,405,399			(54,622,492)			248,349			172,285			76,064
Investment securities - taxable		2.16			1.36			0.80			353,480,368			391,082,609			(37,602,241)			1,909,203			1,334,136			575,067
Investment securities - tax-exempt		3.10			3.08			0.57			128,360,650			132,696,414			(4,335,764)			785,478			806,146			(20,668)
Total Earning Assets		4.60			3.58			1.08			1,172,094,999			1,237,322,010			(65,227,011)			13,241,314			10,833,408			2,407,906
Interest bearing liabilities
Interest bearing demand		0.43			0.23			0.20			321,084,288			368,093,372			(47,009,084)			346,809			210,783			136,026
Savings and Money Market		0.54			0.19			0.35			373,387,706			406,573,873			(33,186,167)			502,290			197,234			305,056
Time deposits - Retail		1.93			0.77			1.16			116,552,284			110,347,902			6,204,382			560,918			210,505			350,413
Total interest bearing deposits		0.70			0.28			0.98			811,024,278			885,015,147			(73,990,869)			1,410,017			618,522			791,495
Federal home Loan Bank advances		4.87			-			4.87			2,087,912			-			2,087,912			25,686			-			25,686
Other borrowings		4.37			4.19			0.18			45,451,410			29,730,636			15,720,774			502,353			314,787			187,566
Total borrowed funds		4.39			4.19			0.20			47,539,322			29,730,636			17,808,686			528,039			314,787			213,252
Total interest-bearing liabilities		0.90			0.41			0.49			858,563,600			914,745,783			(56,182,183)			1,938,056			933,309			1,004,747
Net interest rate spread		3.70			3.17			0.53												11,303,258			9,900,099			1,403,159
Effect of non-interest bearing deposits		(0.22)			(0.10)			(0.12)			272,321,486			291,651,615			(19,330,129)
Cost of funds		0.68			0.31			0.37
Net interest margin		3.92			3.27			0.65

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

	Average Yield and Rate									Average Funds									Interest Income/Expense
	YTD Actual Jun 2023			YTD Actual Jun 2022			Change			YTD Actual Jun 2023			YTD Actual Jun 2022			Change			YTD Actual Jun 2023			YTD Actual Jun 2022			Change
Earning Assets
Loans		5.86			4.98			0.88			671,104,697			633,546,360			37,558,337			19,505,205			15,629,184			3,876,021
Loan fees		-			0.17			(0.17)			-			-			-			-			573,469			(573,469)
Loans with fees		5.86			5.15			0.71			671,104,697			633,546,360			37,558,337			19,505,205			16,202,653			3,302,552
Mortgage loans held for sale		7.12			4.13			2.99			477,700			865,111			(387,411)			17,013			17,846			(833)
Deposits with banks		6.33			0.50			5.83			16,318,340			102,200,792			(85,882,452)			512,113			254,793			257,320
Investment securities - taxable		2.15			1.37			0.78			360,860,952			376,231,210			(15,370,258)			3,883,156			2,581,021			1,302,135
Investment securities - tax-exempt		3.10			3.07			0.03			129,129,294			131,702,392			(2,573,098)			1,581,610			1,597,162			(15,552)
Total Earning Assets		4.43			3.41			1.02			1,177,890,983			1,244,545,865			(66,654,882)			25,499,097			20,653,475			4,845,622
Interest bearing liabilities
Interest bearing demand		0.34			0.23			0.11			339,190,848			368,315,088			(29,124,240)			571,561			416,077			155,484
Savings and Money Market		0.50			0.20			0.30			376,105,721			413,948,145			(37,842,424)			929,346			409,708			519,638
Time deposits - Retail		1.62			0.80			0.82			111,430,503			112,493,378			(1,062,875)			893,666			448,510			445,156
Total interest bearing deposits		0.58			0.29			0.29			826,727,072			894,756,611			(68,029,539)			2,394,573			1,274,295			1,120,278
Federal home Loan Bank advances		5.22			-			5.22			1,392,265			-			1,392,265			36,522			-			36,522
Other borrowings		4.32			4.33			(0.01)			37,672,555			31,207,733			6,464,822			819,125			678,696			140,429
Total interest-bearing liabilities		0.76			0.43			0.33			865,791,892			925,964,344			(60,172,452)			3,250,220			1,952,991			1,297,229
Net interest rate spread		3.67			2.98			0.69												22,248,877			18,700,484			3,548,393
Effect of non-interest bearing deposits		(0.19)			(0.10)			(0.09)			271,877,520			290,500,314			(18,622,795)
Cost of funds		0.57			0.33			0.24
Net interest margin		3.86			3.08			0.78

JD BANCSHARES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

Financial Ratios

											For the Six				For the Six
		For the Qtr			For the Qtr			For the Qtr			Months				Months
		Ended			Ended			Ended			Ended				Ended
		June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023				June 30, 2022
Performance Ratios
Return on Average Assets (ROA)			1.07%			0.70%			0.97%			0.89%				0.81%
ROA based on Pre-tax, pre-provision operating income			1.46%			1.44%			1.05%			1.45%				0.87%
Return on Average Equity (ROE)			19.21%			14.74%			15.67%			17.16%				11.64%
ROE based on Pre-tax, pre-provision operating income			26.11%			30.28%			16.85%			28.02%				12.57%
Earnings per Share		$	0.94		$	0.61		$	0.92		$	1.55			$	1.53
Net Interest Margin			3.92%			3.86%			3.27%			3.86%				3.08%
Efficiency Ratio **			68.33%			67.70%			69.31%			68.02%				72.88%
Non-Interest Income as a % of Avg. Assets**			0.99%			0.92%			0.86%			0.96%				0.86%
Non-Interest Expense as a % of Avg. Assets**			3.29%			3.16%			2.78%			3.23%				2.75%

		As of				As of
		March 30, 2022				December 31, 2022
Bank Level Capital Ratios:
Tier 1 Leverage Ratio		10.64% (Est.)					10.04%
Common Equity Tier 1 Ratio		15.67% (Est.)					15.45%
Tier 1 Risk-Based Capital Ratio		15.67% (Est.)					15.45%
Total Risk-Based Capital Ratio		16.97% (Est.)					16.55%
Company:
Tangible Equity / Total Assets			4.95%				4.28%
Tangible Book Value per Share		$	17.33			$	15.47

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

											For the Six			For the Six
		For the Qtr			For the Qtr			For the Qtr			Months			Months
		Ended			Ended			Ended			Ended			Ended
		June 30, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net Income (GAAP)		$	3,216,519		$	2,085,229		$	3,137,156		$	5,301,748		$	5,245,223
Provision for Loan Losses			364,080			601,588			-			965,669			-
Net (Gain) Loss on OREO			1,022			-			(418)			1,022			585
Net (Gain) Loss on Securities			-			1,263,100			-			1,263,100			-
Non-recurring Revenue			-			-			(291,127)			-			(291,127)
Non-recurring Expenses			153,413			-			282,961			153,413			282,961
Nonrecurring Revenue - PPP origination fees			-			-			(367,355)			-			(573,469)
Income Tax Expense			638,147			332,175			612,520			970,322			1,000,546
Pre-tax, Pre-Provision Operating Income		$	4,373,181		$	4,282,092		$	3,373,737		$	8,655,274		$	5,664,719
** Non-recurring items are eliminated for this ratio

SOURCE: JD Bancshares, Inc.

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