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JD Bancshares, Inc. (OTCQX: JDVB) reported its unaudited financial results for Q1 2023, showing a net income of $2.1 million or $0.61 per share, down from $3.4 million or $1.00 per share in Q4 2022. PTPPOI was $4.2 million, reflecting a decline due to rising interest expenses and lower non-interest income. Total net interest income decreased to $10.9 million from $11.3 million linked quarter, attributed to declining average earning assets. Despite a decrease in total deposits by $43.8 million, stockholders' equity rose to $65.8 million. The company reported two investment losses but indicated potential growth from its new locations in Baton Rouge and the Northshore.
Positive
Increase in net interest income year-over-year by $2.1 million due to higher loan balances and yields.
Tangible book value per share increased to $18.01 from $15.47.
Negative
Net income decreased by 39% compared to the previous quarter.
Total non-interest income fell to $1.5 million, down from $2.9 million linked quarter.
Deposits decreased by $43.8 million, raising concerns about liquidity.
JENNINGS, LA / ACCESSWIRE / April 25, 2023 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the quarter ended March 31, 2023.
Net income for the three-month period ended March 31, 2023 is $2,085,229 or $0.61 per share compared to $3,421,668 or $1.00 per share for the linked quarter ended December 31, 2022 and $2,108,163 or $0.62 per share for the prior year period ended March 31, 2022. Pre-tax, pre-provision operating income (PTPPOI) for the current quarter is $4,211,047 compared to $4,645,024 for the linked quarter and $2,291,078 for the prior year quarter. PTPPOI excludes taxes, loan loss provision, net losses on the sale of other real estate owned (OREO), net losses on the disposal of available for sale investment securities, other than temporary impairments and the recognition of origination fees on loans made pursuant to the Paychecks Protection Program (PPP). The decrease in PTPPOI for the current period compared to the linked period is primarily due to an increase in interest expense and a decline in non-interest income. Compared to the prior year quarter, the increase in PTPPOI is due to a significant improvement in net interest income and partially offset by an increase in non-interest expenses.
Bruce Elder, President and CEO, commented, "The banking industry has been the focus of news headlines over the past month as two prominent financial institutions failed. Each of these banks had unique business models, customers concentrated in the technology and crypto industries and large percentages of uninsured deposits. While we have experienced a decline in deposits over the first three months of the year, the majority of the decrease occurred prior to these events. These events have raised concerns regarding deposits insured by the Federal Deposit Insurance Fund. JD Bank is a community bank established in 1947 with deep roots in southwest Louisiana, has a broad and diverse customer base across many industries, has managed through various banking cycles and has earned the confidence of our depositors."
Elder continues, "We recorded two losses related to the investment portfolio in the first quarter; a realized loss on the sale of a group of available for sale securities and a valuation allowance on a corporate bond investment. Despite these non-recurring losses, current quarter net income of $2.1 million was relatively flat compared to the prior year first quarter and is $1.9 million higher on a pre-tax, pre-provision operating basis. Over the final three quarters of 2022, the Company enjoyed rising net interest income due to the unprecedented increases in interest rates and solid loan growth. During that timeframe, our cost of interest-bearing funds remained fairly flat. And although our net interest margin has drifted higher over the past twelve months, we are seeing upward pressure on deposit rates in the first quarter of 2023 leading to higher interest expense. These higher interest expenses resulted in the first quarterly decline in net interest income in a year. We are seeing positive signs from our expansion into Baton Rouge and the Northshore and anticipate loan growth and interest income will increase as we move through the year."
Paycheck Protection Program Lending
During 2020 and 2021, the Company made 1,422 PPP loans totaling $110.4 million. As of March 31, 2023, there is one remaining loan outstanding in the amount of $945,000. The remaining PPP borrower has received partial forgiveness from the Small Business Administration (SBA) and is making payments on the outstanding balance. We have been repaid $109.5 million through SBA forgiveness and customer payments.
The Company received origination fees from the SBA for participating in the program. At origination, we recognized, as interest income, that portion of the fee estimated to be our internal cost of origination. The remainder is amortized over the contractual life of the loan. If the loan is forgiven or repaid early, the remaining unamortized portion is recognized as interest income in the month of repayment. All origination fees initially collected have been recognized prior to the current and linked quarters and $206,000 of origination fees are included in interest income for the quarter ended March 31, 2022.
Asset Quality
Loans past due 30 to 89 days at March 31, 2023 are $1.6 million or 0.24% of the total loans outstanding compared to $2.3 million or 0.35% of total loans reported at December 31, 2022. Total nonperforming assets, including loans and investment securities in non-accrual status, OREO and repossessed assets are $16.5 million at March 31, 2023, increasing from $14.3 million at December 31, 2022. Loans on non-accrual status increased by $1.6 million to $15.0 million from $13.4 million at December 31, 2022. At March 31, 2023 we had one investment security of $499,000 in non-accrual status. OREO increased slightly to $917,000 from $863,000 and repossessed assets were unchanged from year-end at $37,000. 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.
Of the $15.0 million in non-accrual loans at March 31, 2023, there are two loans comprising one relationship totaling $11.0 million. The relationship was moved to non-accrual status during the fourth quarter of 2022. Management has been closely monitoring this relationship and believes the issues will be resolved in a favorable manner in the second half of the year, and all principal and interest will be repaid in accordance with the terms of the underlying loan contracts.
The Company invested $499,000 in subordinated debt issued by Signature Bank of New York. That bank failed on March 12, 2023 and at the end of the quarter, our ability to recover our investment is highly uncertain. As such, we evaluated the asset for impairment and have setup a reserve of 90%, or $449,000, for potential losses associated with the investment.
Provisions for loan losses for the quarters ended March 31, 2023 and December 31, 2022 are $82,000 and $533,000, respectively. There were no provisions booked during the quarter ended March 31, 2022. Effective January 1, 2023, the Company changed accounting methods for the calculation of the allowance for loan losses (ALLL) from the incurred loss method to the current expected credit loss (CECL) model. As a result, we made a one-time adjustment to our ALLL of $573,000 effective January 2, 2023. Current accounting standards required the one-time adjustment to be offset against retained earnings and any future provision adjustments go against current earnings. The ALLL is $9.8 million at March 31, 2023 or 1.47% of total loans compared to $9.2 million at December 31, 2022 or 1.32% of total loans. We recognized net charge-offs in the current quarter of $29,000 compared to $57,000 for the linked quarter and $50,000 for the prior year quarter. We believe the current level of our ALLL is adequate. However; 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 quarter ended March 31, 2023 is $10.9 million compared to $11.3 million for the linked quarter and $8.8 million for the prior year quarter. The $321,000 decline in net interest income between the current and linked quarters is primarily due to a decline in average earning assets and a higher interest expense on deposits. The $2.1 million increase in net interest income year over year is due to a greater average balance of loans outstanding and the higher yields on all earning assets.
Interest income on loans for the current quarter is $9.2 million reflecting a decrease of $77,000 compared to the linked quarter and increasing by $1.5 million compared to the prior year quarter. The decrease in net interest income between the current and linked quarters is due to reduced loan volume, two fewer days in the current quarter and partially offset by higher yields. Average loans outstanding for the March 31, 2023 quarter are $668.2 million compared to $674.3 million for the linked quarter. The yield on loans increased to 5.60% in the current quarter from 5.47% in Q4 2022. The year over year increase in interest income on loans is due to a $44.0 million increase in the volume of average loans outstanding and a 60 basis point increase in yield. Higher rates earned on deposits with banks and investment securities contributed to the average yield of earning assets for the current quarter of 4.32% compared to 4.08% for Q4 2022 and 3.25% for Q1 2022. Interest income from these other earning assets is $3.0 million, $3.0 million and $2.1 million for the three comparative quarters, respectively.
Total interest expense is $1.3 million for the current quarter and $1.0 million in each of the linked and prior year quarters. The increase in interest expense is due to the higher cost of interest-bearing deposits. The cost of interest-bearing deposits has increased to 0.47% for the current quarter compared to 0.36% and 0.29% for the linked and prior year quarters, respectively. The higher deposit interest rates, coupled with an average rate on borrowed funds of 4.30%, caused an increase in the average cost of total interest-bearing liabilities to 0.61% for the current quarter compared to 0.55% and 0.44% for the linked and prior year quarters, respectively.
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 3.86% for the current quarter, reflecting a 12 basis point increase over the 3.74% margin in Q4 2022 and a 95 basis point increase over the 2.91% margin for Q1 2022. As the Federal Reserve Open Market Committee (FOMC) continues its fight against inflation, there could be some compression on the net interest margin in the coming periods. The FOMC has increased short-term interest rates by 475 basis points over the past twelve months, but due to market expectations regarding the level of future interest rates, current loan pricing reflects only a portion of that increase. Furthermore, loan demand has softened into the early part of 2023. This, combined with upward pressure on core deposit rates, could slow the pace of net interest margin expansion or result in slight margin compression.
Non-Interest Income
Total non-interest income is $1.5 million for the quarter ended March 31, 2023 compared to $2.9 million for the linked quarter and $2.7 million for the prior year quarter. Service charges and fees associated with deposit accounts are relatively flat across the comparative quarters at $2.2 million, $2.3 million and $2.2 million, respectively. The reduction in service charges and fee income between current and linked quarters is primarily due to a decrease in NSF fees as the Company made a decision, in response to new regulatory interpretation, to no longer assess additional fees for items returned and then re-presented.
Mortgage loan originations have declined over the past twelve months. While the demand for housing remains strong in many of our markets, the level of interest rates has caused consumers to delay home purchases. Gains on the sale of newly originated mortgage loans are $110,000 for the most recent quarter, up from $98,000 for Q4 2022 and down from $239,000 for Q1 2022. The FOMC began increasing short-term interest rates in March 2022 and originations have declined significantly from 2021 levels.
Other non-interest income is negative for the current quarter at ($845,000) compared to $580,000 for the linked quarter and $201,000 for the quarter ended March 31, 2022. In early February, the Company sold approximately $26.3 million of available-for-sale investment securities to enhance balance sheet liquidity and recorded a $1.3 million loss on the sale. The largest components of other non-interest income continues to be from trust and brokerage services. Those two revenue sources totaled $213,000, $285,000 and $259,000, respectively, for the three comparative periods.
Non-Interest Expense
Total non-interest expense is $9.9 million in Q1 2023 compared to $9.5 million for the linked quarter and $9.0 million for the prior year quarter. Salaries and benefits is the largest component of non-interest expenses and is $4.9 million for both the current and linked quarters and $4.6 million in the prior year period. Salaries and benefits expense in Q1 2023 increased by $47,000 compared to Q4 2022 and by $319,000 compared to Q1 2022. The establishment of two Loan and Deposit Production Offices (LPO/DPO), in Baton Rouge and the Northshore area, account for more than half of the increase between the current and prior year quarters.
Occupancy expense is $1.4 million in both the current and linked quarters compared to $1.2 million in the prior year quarter. Over the past year we opened two leased LPO/DPO offices and leased additional space for operational functions. Data processing expenses are $1.3 million in the current quarter and $1.2 million in both Q4 and Q1 of 2022. Advertising and public relations expenses are $303,000 for the current three months, $401,000 in the linked quarter and $342,000 a year ago. Marketing expenses associated with the openings of the two new LPO/DPO locations caused the increase in Q4 2022.
All other non-interest expenses are $2.1 million for the current quarter compared to $1.7 million for both the linked quarter and prior year quarter. All three comparative quarters included non-recurring, non-operating expenses. For Q1 2023, we set-up a valuation allowance for the other than temporary impairment of subordinated debt issued by Signature Bank of New York in the amount of $448,000. For Q4 2022 and Q1 2022, we recorded gains and (losses) on OREO of $12,000 and ($1,000), respectively. The largest components of non-interest expenses in the current quarter are comprised of professional fees, ad valorem taxes, FDIC deposit insurance assessments, loan related expenses, and telecommunications. Loan expenses for the current quarter include charges associated with the establishment of a reserve for unfunded loan commitments.
Income tax expense is $332,000 for the current quarter compared with $702,000 for the linked quarter and $388,000 for the prior year quarter. Effective tax rates for the three comparative quarters are 13.74%, 17.03% and 15.54%, respectively.
Balance Sheet
Total assets declined by $23.6 million during the first three months of the year and are $1.2 billion at both March 31, 2023 and December 31, 2022. The increase in cash on hand and on deposit with correspondent banks of $5.4 million and was more than offset by declines in other asset categories. The category experiencing the greatest decline is investment securities which decreased by $22.5 million. This decrease is comprised of securities sales of $26.3 million, principal paydowns and net amortization of $7.1 million and offset by an improvement in the fair market value of available for sale securities of $10.9 million. Loans, net of unearned income, declined by $3.1 million and the ALLL was higher primarily due to the one-time CECL adjustment. Other assets decreased by $1.4 million due to a reduction in the deferred tax benefit resulting from a higher market values of securities.
Total deposits declined by $43.8 million during the first quarter of 2023 and are $1.1 billion at both March 31, 2023 and December 31, 2022. As disclosed in prior reports, total deposits increased by $429.3 million between December 31, 2019 and December 31, 2021. The increase was a result of government sponsored programs to help both consumers and businesses through the COVID-19 pandemic and the receipt of insurance proceeds related to the two hurricanes in southwest Louisiana in the fall of 2020. As insurance proceeds are used to effectuate repairs and the cost of goods and services have increased with inflation, those excess deposits have declined. The Company also has significant banking relationships with various public entities who experience large inflows of deposits prior to year-end and substantial outflows in the new calendar year. The decline in total public unit deposits during the first three months of 2023 account for $24.0 million of the total $43.8 million decrease in total deposits. There was a misclassification between interest-bearing and non-interest-bearing deposits at December 31, 2022. The amounts reflected in the accompanying statements for December 31, 2022 have been adjusted to reflect accurate information and the reclassification had no effect on prior earnings.
During the weekend of March 10 through 12, 2023, both Silicon Valley Bank and Signature Bank of New York were taken into receivership by the Federal Deposit Insurance Corporation. The failure of these two banks was due in part to business models catering to the venture technology and crypto industries and was exasperated by very high levels of uninsured deposits. Of the $43.8 million in deposit outflows occurring since December 31, 2022, only $2.4 million occurred during March, the period during which these banking issues surfaced. January 2023 experienced the highest level of deposit decline which is when the buildup of public deposits leaves the Company. At March 31, 2023, the Company has approximately $206.1 million of uninsured deposits which represents approximately 18.73% of total deposits.
Other liabilities increased by $11.6 million during the first three months of 2023. The increase is attributed to Federal Home Loan Bank borrowings and increases in the accrual balances of taxes, unfunded commitments and interest.
Stockholders' equity increased by $8.7 million to $65.8 million at March 31, 2023 from $57.1 million at December 31, 2022. The increase is due to improvement in accumulated other comprehensive income associated with the net unrealized loss on available for sale securities of $8.6 million and net income for the period of $2.1 million, partially offset by the $1.2 million adjustment to implement CECL and $924,000 in dividends paid to stockholders. Tangible book value per common share increased to $18.01 at March 31, 2023 compared to $15.47 at December 31, 2022.
Key Performance Ratios
Return on average assets (ROA) in the current quarter is 0.70% compared to 1.10% and 0.64% for the linked and prior year quarters, respectively. The decline in ROA between Q1 2023 and Q4 2022 was primarily due to the two non-recurring, non-operating items; the realized loss on the sale of available for sale securities and the impairment charge on a corporate bond investment. ROA on a non-GAAP pre-tax, pre-provision operating basis for the three comparative periods is 1.41%, 1.49% and 0.70%, respectively. Return on average equity (ROE) is 14.74% for the current quarter, 27.65% for the linked quarter and 8.42% for the prior year quarter. On a non-GAAP, pre-tax, pre-provision operating basis, the ROE for the three comparative periods is 29.78%, 37.53% and 9.15%, respectively. ROE calculations for the current and linked quarters are favorably impacted by the accumulated other comprehensive income related to the net unrealized loss on available for sale securities.
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.
JD BANCSHARES, INC. AND SUBSIDIARIES JENNINGS, LOUISIANA
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Actual Mar 2023
Actual Dec 2022
$ Variance
% Variance
Assets
Cash and due from banks
27,006,692
26,434,524
572,168
2.2
Interest bearing deposits with banks
26,727,173
21,855,505
4,871,668
22.3
Investment Securities - Taxable
301,754,335
321,185,999
(19,431,664
)
(6.0
)
Investment Securities - Tax-exempt
128,447,676
131,488,014
(3,040,338
)
(2.3
)
Mortgage loans held for sale
150,764
549,984
(399,220
)
(72.6
)
Loans, net of unearned income
669,552,406
672,632,940
(3,080,534
)
(0.5
)
Less: Allowance for loan losses
(9,834,239
)
(9,208,070
)
(626,169
)
6.8
Premises and equipment, net
22,547,784
22,692,381
(144,597
)
(0.6
)
Accrued interest receivable
4,067,402
4,985,487
(918,085
)
(18.4
)
Other real estate
916,995
863,101
53,894
6.2
Other assets
41,239,403
42,656,191
(1,416,788
)
(3.3
)
Total Assets
1,212,576,391
1,236,136,056
(23,559,665
)
(1.9
)
Liabilities
Non-Interest Bearing Deposits
267,936,681
281,921,238
(13,984,557
)
(5.0
)
Interest bearing demand deposits
338,410,836
383,786,414
(45,375,578
)
(11.8
)
Savings and Money Market Deposits
380,110,453
376,093,240
4,017,213
1.1
Time Deposits - Retail
113,729,435
102,193,314
11,536,121
11.3
Total Deposits
1,100,187,405
1,143,994,206
(43,806,801
)
(3.8
)
Accrued expenses and other liabilities
6,806,407
5,281,592
1,524,815
28.9
FHLB Advances
10,000,000
-
10,000,000
-
Other Borrowings
29,800,027
29,764,526
35,501
0.1
Total Liabilities*
1,146,793,839
1,179,040,324
(32,246,485
)
(2.7
)
Equity
Common stock
21,378,500
21,378,500
-
-
3,420,560 shares outstanding at 3.31.23
3,420,560 shares outstanding at 12.31.22
Capital surplus
10,312,636
10,312,636
-
-
Retained earnings
76,837,079
76,844,905
(7,826
)
(0.0
)
Accumulated other comprehensive income (loss)
(42,266,179
)
(50,873,123
)
8,606,944
(16.9
)
Less: Unearned common stock awards
(479,484
)
(567,186
)
87,702
(15.5
)
Total Equity
65,782,552
57,095,732
8,686,820
15.2
Total Liabilities & Equity
1,212,576,391
1,236,136,056
(23,559,665
)
(1.9
)
* Certain line items within the Total Deposit category have been reclassified from previous presentations.
JD BANCSHARES, INC. AND SUBSIDIARIES JENNINGS, LOUISIANA
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
QTD Actual Mar 2023
QTD Actual Dec 2022
$ Variance
% Variance
QTD Actual Mar 2022
$ Variance
% Variance
Interest Income
Interest on Loans
9,218,160
9,295,379
(77,219
)
(0.8
)
7,692,991
1,525,169
19.8
Mortgage Loans Held For Sale
5,774
7,729
(1,955
)
(25.3
)
6,666
(892
)
(13.4
)
Interest on deposits with banks
263,765
264,754
(989
)
(0.4
)
82,507
181,258
219.7
Investment Securities - Taxable
1,973,953
1,933,989
39,964
2.1
1,246,884
727,069
58.3
Investment Securities - Tax-exempt
796,132
809,529
(13,397
)
(1.7
)
791,016
5,116
0.6
Total Interest Income
12,257,784
12,311,380
(53,596
)
(0.4
)
9,820,064
2,437,720
24.8
Interest Expense
Interest bearing demand deposits
224,752
220,006
4,746
2.2
205,294
19,458
9.5
Savings and Money Market Deposits
427,055
325,950
101,105
31.0
212,474
214,581
101.0
Time Deposits - Retail
332,748
182,799
149,949
82.0
238,005
94,743
39.8
Total Interest Expense on Deposits
984,555
728,755
255,800
35.1
655,773
328,782
50.1
FHLB Advances
10,836
-
10,836
-
-
10,836
-
Interest on other borrowings
316,772
316,366
406
0.1
363,909
(47,137
)
(13.0
)
Total Interest Expense
1,312,163
1,045,121
267,042
25.6
1,019,682
292,481
28.7
Net Interest Income
10,945,621
11,266,259
(320,638
)
(2.8
)
8,800,382
2,145,239
24.4
Provision for loan losses
81,651
533,000
(451,349
)
(84.7
)
-
81,651
-
Net In. Inc. After Prov. for Loan Losses
10,863,970
10,733,259
130,711
1.2
8,800,382
2,063,588
23.4
Non Interest Income
Service charges and fees
2,228,042
2,253,309
(25,267
)
(1.1
)
2,224,632
3,410
0.2
Mortgage loan and related fees
109,628
97,928
11,700
11.9
238,911
(129,283
)
(54.1
)
Other noninterest income
(844,977
)
580,365
(1,425,342
)
(245.6
)
200,507
(1,045,484
)
(521.4
)
Total Non Interest Income
1,492,693
2,931,602
(1,438,909
)
(49.1
)
2,664,050
(1,171,357
)
(44.0
)
Non Interest Expense
Salaries and employee benefits
4,914,778
4,867,737
47,041
1.0
4,596,179
318,599
6.9
Occupancy
1,358,046
1,367,330
(9,284
)
(0.7
)
1,203,330
154,716
12.9
Advertising and public relations
303,290
400,555
(97,265
)
(24.3
)
342,034
(38,744
)
(11.3
)
Data Processing
1,295,130
1,216,896
78,234
6.4
1,151,010
144,120
12.5
Other noninterest expense
2,068,015
1,688,367
379,648
22.5
1,675,690
392,325
23.4
Total Non Interest Expense
9,939,259
9,540,885
398,374
4.2
8,968,243
971,016
10.8
Income Before Taxes
2,417,404
4,123,976
(1,706,572
)
(41.4
)
2,496,189
(78,785
)
(3.2
)
Income taxes
332,175
702,308
(370,133
)
(52.7
)
388,026
(55,851
)
(14.4
)
Net Income
2,085,229
3,421,668
(1,336,439
)
(39.1
)
2,108,163
(22,934
)
(1.1
)
Per common share data:
Earnings
$
0.61
$
1.00
$
0.62
Weighted average number of shares outstanding
3,420,560
3,414,370
3,426,160
JD BANCSHARES, INC. AND SUBSIDIARIES Margin Analysis Compare
Average Yield and Rate
Average Funds
Interest Income/Expense
QTD Actual Mar 2023
QTD Actual Mar 2022
Change
QTD Actual Mar 2023
QTD Actual Mar 2022
Change
QTD Actual Mar 2023
QTD Actual Mar 2022
Change
Earning Assets
Loans
5.60
4.87
0.73
668,166,084
624,205,639
43,960,445
9,218,160
7,486,877
1,731,283
PPP fee recognition
-
0.13
(0.13
)
-
-
-
-
206,114
(206,114
)
Loans with fees
5.60
5.00
0.60
668,166,084
624,205,639
43,960,445
9,218,160
7,692,991
1,525,169
Mortgage loans held for sale
7.29
3.50
3.79
316,876
761,398
(444,522
)
5,774
6,666
(892
)
Deposits with banks
5.99
0.25
5.74
17,870,832
135,360,577
(117,489,745
)
263,765
82,507
181,258
Investment securities - taxable
2.14
1.38
0.76
368,323,542
361,214,796
7,108,746
1,973,953
1,246,884
727,069
Investment securities - tax-exempt
3.66
3.06
0.60
129,906,479
130,697,324
(790,846
)
796,132
791,016
5,116
Total Earning Assets
4.32
3.25
1.07
1,184,583,813
1,252,239,734
(67,655,921
)
12,257,784
9,820,064
2,437,720
Interest bearing liabilities
Interest bearing demand
0.26
0.23
0.03
357,297,408
368,536,803
(11,239,395
)
224,752
205,294
19,458
Savings and Money Market
0.46
0.20
0.26
378,853,936
421,404,354
(42,550,418
)
427,055
212,474
214,582
Time deposits - Retail
1.27
0.84
0.43
106,251,813
114,662,693
(8,410,880
)
332,749
238,005
94,743
Total interest bearing deposits
0.47
0.29
0.18
842,403,157
904,603,850
(62,200,693
)
984,556
655,773
328,783
Federal home Loan Bank advances
6.29
-
6.29
688,889
-
688,889
10,836
-
10,836
Other borrowings
4.25
4.45
(0.20
)
29,807,267
32,701,242
(2,893,975
)
316,772
363,909
(47,137
)
Total borrowed funds
4.30
4.45
(0.15
)
30,496,156
32,701,242
(2,205,086
)
327,608
363,909
(36,301
)
Total interest-bearing liabilities
0.61
0.44
0.17
872,899,313
937,305,092
(64,405,779
)
1,312,164
1,019,682
292,482
Net interest rate spread
3.71
2.80
0.91
10,945,620
8,800,383
2,145,237
Effect of non-interest bearing deposits
(0.15
)
(0.10
)
(0.05
)
271,433,553
289,349,013
(17,915,460
)
Cost of funds
0.46
0.34
0.12
Net interest margin
3.86
2.91
0.95
JD BANCSHARES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
Financial Ratios
For the Qtr
For the Qtr
For the Qtr
Ended
Ended
Ended
March 31, 2023
December 31, 2022
March 31, 2022
Performance Ratios
Return on Average Assets (ROA)
0.70
%
1.10
%
0.64
%
ROA based on Pre-tax, pre-provision operating income
1.41
%
1.49
%
0.70
%
Return on Average Equity (ROE)
14.74
%
27.65
%
8.42
%
ROE based on Pre-tax, pre-provision operating income
29.78
%
37.53
%
9.15
%
Earnings per Share
$
0.61
$
1.00
$
0.62
Net Interest Margin
3.86
%
3.74
%
2.91
%
Efficiency Ratio **
71.44
%
66.28
%
76.81
%
Non-Interest Income as a % of Avg. Assets**
0.92
%
0.94
%
0.82
%
Non-Interest Expense as a % of Avg. Assets**
3.33
%
3.07
%
2.72
%
As of
As of
March 31, 2023
December 31, 2022
Bank Level Capital Ratios:
Tier 1 Leverage Ratio
10.32% (Est.)
10.04
%
Common Equity Tier 1 Ratio
15.87% (Est.)
15.45
%
Tier 1 Risk-Based Capital Ratio
15.87% (Est.)
15.45
%
Total Risk-Based Capital Ratio
17.08% (Est.)
16.55
%
Company:
Tangible Equity / Total Assets
5.08
%
4.28
%
Tangible Book Value per Share
$
18.01
$
15.47
Reconcilement of GAAP to Pre-tax, Pre-Provision Operating Income:
For the Qtr
For the Qtr
For the Qtr
Ended
Ended
Ended
March 31, 2023
December 31, 2022
March 31, 2022
Net Income (GAAP)
$
2,085,229
$
3,421,668
$
2,108,163
Provision for Loan Lossess
81,651
533,000
-
Net (Gain) Loss on OREO
-
(11,952
)
1,003
Net (Gain) Loss on Securities
1,263,100
-
-
Non-recurring Revenue
-
-
-
Non-recurring Expenses
-
-
-
Nonrecurring Revenue - PPP origination fees
448,892
-
(206,114
)
Income Tax Expense
332,175
702,308
388,026
Pre-tax, Pre-Provision Operating Income
$
4,211,047
$
4,645,024
$
2,291,078
** Non-recurring items are eliminated for this ratio
