JD Bancshares, Inc. Reports Financial Results for Q3 2024

Rhea-AI Summary

JD Bancshares (OTCQX:JDVB) reported Q3 2024 net income of $3.7 million ($1.08 per share), up from $3.0 million in Q2 2024 and $3.5 million in Q3 2023. The company's net interest margin expanded to 4.04% despite higher interest rates. Year-to-date net income reached $10.4 million ($3.03 per share), compared to $8.8 million in the same period last year. Asset quality improved with nonperforming assets declining to $7.4 million from $12.1 million at year-end 2023. The loan-to-deposit ratio increased from 66.7% to 72.1%, while total assets remained stable at $1.2 billion.

Positive

• Net income increased to $3.7M in Q3 2024, up from $3.0M in Q2 2024
• Net interest margin expanded to 4.04% from 3.90% in previous quarter
• Year-to-date net income grew to $10.4M from $8.8M year-over-year
• Nonperforming assets decreased to $7.4M from $12.1M at year-end 2023
• Loan-to-deposit ratio improved to 72.1% from 66.7%

Negative

• Total deposits declined by $14.9M since December 31, 2023
• Non-interest expense increased to $29.7M from $29.1M year-over-year
• Interest expense rose to $3.7M from $2.3M year-over-year

JENNINGS, LA / ACCESSWIRE / October 24, 2024 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the three and nine-month periods ended September 30, 2024.

Net income is $3,706,103 or $1.08 per share for the three-month period ended September 30, 2024, compared to $3,028,833 or $0.88 per share for the linked quarter ended June 30, 2024 and $3,492,852 or $1.02 per share for the three-month period ended September 30, 2023. Pre-tax, pre-provision operating income (PTPPI) for the current quarter is $4,285,522, reflecting an increase compared to $3,951,414 and $4,154,284 for the linked and prior year quarters, respectively. PTPPI excludes taxes, provision for loan losses, losses on the sale of other real estate owned (OREO), losses on the sale of investment securities, and other non-operating expenses. The increase in PTPPI between the current and linked quarter is primarily due to higher levels of net interest income and the increase between the current and prior year quarter is attributable to higher net interest income, partially offset by higher non-interest expense.

For the nine-month period ended September 30, 2024, net income is $10,387,333 or $3.03 per share compared to $8,794,599 or $2.57 per share for the prior year comparative period. PTPPI for the current nine-month period is $11,946,182 reflecting a 6.74% decrease from $12,809,557 for the prior year period. The decrease is attributable to a 2.3% increase in non-interest expense.

Paul Brummett, II, CEO commented, "We are excited to report our third quarter net income results of $3.7 million, which exceeds net income for both the June 30, 2024 and September 30, 2023 quarters. Despite the continued higher rate environment, our net interest margin expanded for the comparative quarters. Our year-to-date financial performance is up $1.6 million when compared to last year, the prior year's results include an after-tax loss realized on the sale of investment securities in the first quarter of $998,000. We remain focused on growing earnings through generating quality, well-priced loans while controlling non-interest expenses. We are encouraged by new loan activity and rates on new and renewed loans. I am pleased with the performance of the Company and our team's efforts to continue "To Be The Best Community Bank in Louisiana"."

Asset Quality

Loans past due 30 to 89 days as of September 30, 2024 total $3.8 million or 0.53% of total gross loans compared to $4.2 million or 0.61% at December 31, 2023. Total nonperforming assets, including loans on non-accrual status, OREO and repossessed assets declined to $7.4 million at September 30, 2024 from $12.1 million at December 31, 2023. Loans currently in non-accrual status declined to $4.9 million from $10.6 million at year-end 2023 and OREO is currently $2,460,000 compared to $1,514,000. There are no repossessed assets at September 30, 2024 or at the prior 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.

The Bank released $331,000 of its Allowance for Credit Losses (ACL) in the current quarter compared to recording a provision of $156,000 in the linked quarter and a release of $50,000 for the prior year quarter. The ACL is $9.0 million at September 30, 2024 or 1.23% of total loans compared to $9.9 million at December 31, 2023 or 1.45%. We recognized net charge-offs in the current quarter of $92,000 compared to $2,000 for the linked quarter and $123,000 for the prior year quarter. Net charge-offs for the comparative nine-month periods ended September 30, 2024 and 2023 are $173,000 and $486,000, respectively. While we believe the current level of our ACL 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 ACL.

Net Interest Income

Net interest income for the current quarter is $11.4 million, reflecting an increase of $469,000 compared to $10.9 million for the linked quarter ended June 30, 2024. The current quarter results reflect an increase of $525,000 compared to $10.8 million reported for the prior year quarter ended September 30, 2023. Comparing net interest income for the September and June 2024 quarters, the increase is primarily due to higher yields on earning assets and partially offset by a higher volume of interest-bearing liabilities. The increase in net interest income between the current and prior year quarter is due to a higher yield on earning assets and partially offset by increased funding costs and volume of interest-bearing liabilities.

Total interest income on all earning assets for the current quarter is $15.0 million compared to $14.2 million for the linked quarter and $13.1 million for the prior year quarter. Interest income on loans is $12.3 million, $11.3 million and $10.1 million for the three comparative quarters, respectively. Average loans outstanding are $727.3 million for Q3 2024, $710.8 million for Q2 2024 and $672.6 million for Q3 2023. The yield on loans increased to 6.74% in the current quarter from 6.40% in linked quarter and increased from 5.93% for the prior year quarter. As other earning assets have been used to support loan growth over the past twelve months, interest income from interest bearing deposits at banks and investment securities have experienced declines from both a quarterly and year-over-year comparison.

Total interest expense is $3.7 million, $3.3 million and $2.3 million for the three comparative quarters, respectively. Interest expense on deposits is $2.7 million in Q3 2024, $2.4 million in Q2 2024 and $1.6 million in Q3 2023. The cost of interest-bearing liabilities is 1.70% for the current quarter, 1.58% for the linked quarter and 1.05% for the prior year quarter. The average volume of interest-bearing deposits is $772.1 million for the current quarter, reflecting an increase of $8.1 million from the linked and a decrease of $14.2 million from the prior year quarter. Interest expense on subordinated debt and other borrowings is $935,000 in the current quarter compared to $916,000 in the linked quarter and $699,000 in the prior year quarter. The increase in interest expense from borrowings is due to increases in both the volume of borrowing and the cost of those borrowings. The cost of funds, which includes the impact of noninterest-bearing deposits, is 1.32% for the current period compared to 1.21% for Q2 2024 and 0.79% for Q3 2023.

Net interest income for the current nine-month period is $33.0 million compared to $33.1 million for the prior year period. Total interest income from earning assets is $43.1 million producing a yield of 5.12% compared to $38.6 million and a yield of 4.45% a year ago. Despite a decline in the volume of average earning assets outstanding of $39.8 million, the 67 basis point increase in yields on those assets resulted in the $4.5 million increase. Total interest expense increased from $5.5 million and a cost of interest-bearing funds of 0.86% for the prior year period to $10.0 million and 1.58% for the current nine-month period. The higher interest expense is due to the 72 basis point increase in the cost of interest-bearing funds. The cost of total funds is currently 1.22% compared to 0.65% a year ago.

The net interest margin is 4.04% for the current quarter compared to 3.90% in the linked quarter. The cost of funds increased by 11 basis points and the yield on earning assets increased by 25 basis points resulting in the 14 basis point increase. For the nine-month periods ended September 30, 2024 and 2023, net interest margin increased by 14 basis points from 3.81% to 3.95%.

We have made steady progress improving our loan to deposit ratio and transitioning lower earning assets into higher earning asset categories. Our loan to deposit ratio has grown from 66.7% at December 31, 2023 to 72.1% at September 30, 2024.

Non-Interest Income

Total non-interest income is $2.8 million for both the three-month period ended September 30, 2024 and the linked quarter compared to $2.9 million for the prior year quarter. Service charges and fees associated with deposit accounts are $2.2 million for all compared quarters. The largest component of service charges and fees is interchange revenue on debit card transactions. Interchange revenue is $1.2 million for all compared quarters. Revenue from non-sufficient funds (NSF) is $752,000 in the current quarter compared to $722,000 in the linked quarter and $754,000 in the prior year quarter. The slight decrease in NSF fee revenue in the current year quarters compared to 2023 is primarily due to the Company's decision to no longer charge fees for those items returned against a customer's account more than once.

The higher interest rate environment continues to negatively impact the gains on the sale of originated mortgage loans. Gains on the sale of originated mortgages is $105,000 for the current quarter compared to $124,000 for Q2 2024 and Q3 2023.

Other non-interest income is $537,000 for the current quarter compared to $534,000 for the linked quarter and $563,000 for the prior year quarter. Revenues from trust and brokerage activities comprise the largest components of other non-interest income. The sum of these two revenue streams is $237,000, $288,000 and $247,000 for the three comparative quarters, respectively. There are no non-recurring, non-operating revenue items for any of the comparative quarters.

Non-interest income for the nine-month period ended September 30, 2024 is $8.4 million, compared to $7.4 million for the prior year period. Service charges and fees declined by $171,000 to $6.5 million from $6.7 million and were negatively impacted by a $235,000 decrease in interchange revenue. Gains on sale of originated mortgage loans is $297,000 compared to $386,000 and other non-interest income is $1.6 million compared to $304,000. Other non-interest income for the prior nine-month period includes a $1,263,000 non-recurring realized loss on the sale of investment securities recognized in the first quarter.

Non-Interest Expense

Total non-interest expense is $10.0 million for the September 30, 2024 quarter compared to $9.9 million for the linked quarter and $9.6 million for the prior year quarter. Salary and benefits expense is the largest component of non-interest expense and is $5.5 million for the current quarter and linked quarter, and $5.2 million for the prior year quarter.

Occupancy expense is $1.3 million for both the current and linked quarters and $1.4 million for the prior year quarter.

Data processing expense is $1.2 million for the current quarter, $1.0 million in the linked quarter and $1.4 million for the prior year quarter. Data processing has declined from the prior year quarter due to negotiating a favorable contract with our core software provider. Advertising and public relations expense totals $371,000 in the current quarter compared to $398,000 for the June 2024 quarter and $250,000 for the September 2023 quarter. Other non-interest expense is $1.7 million for Q3 2024 and Q2 2024, and $1.4 million for Q3 2023. The largest components of other non-interest expenses are professional fees, ad valorem taxes, FDIC insurance assessments and other losses. Included in other non-interest expense is net losses on the sale of OREO of $103,000, $178,000 and $3,000 for each of the comparative quarters.

Non-interest expense for the nine-month period ended September 30, 2024 is $29.7 million compared to $29.1 million for the prior year. Increases in salaries and employee benefits and advertising and public relations are partially offset by decreases in occupancy and data processing. Losses on the sale of OREO for the current and prior nine-month periods is $293,000 and $4,000, respectively. Non-recurring, non-operating expenses for the prior nine-month period include $153,000 in reimbursements to certain customers who had been charged in accordance with the Company's disclosures, multiple NSF fees on represented items. We decided to reimburse those charges due to recent regulatory scrutiny regarding fees on represented items.

Income tax expense is $769,000 for the current quarter compared to $589,000 for the linked quarter and $695,000 for the September 30, 2023 quarter. The effective tax rate is 17.19%, 16.27% and 16.60% for the three comparative quarters, respectively. Current year-to-date income tax expense is $2.1 million with an effective rate of 16.74% compared to $1.7 million and 15.92% for the prior year nine-month period.

Balance Sheet

Total assets are $1.2 billion at both September 30, 2024 and December 31, 2023.

In the nine months since December 31, 2023, the Company has raised $15.6 million in cash from its investment portfolio through securities principal repayments. The cash generated from securities repayments, plus $38.4 million of existing cash and $7.5 million of net income, less dividends paid stockholders, has been used to fund the decline in total deposits and new net loan growth. Total deposits have declined by $14.9 million through September 30, 2024. The largest decline has occurred in interest-bearing demand accounts, which have decreased by $23.1 million. Savings accounts and noninterest-bearing demand accounts have experienced year-to-date declines of $20.5 million and $14.8 million, respectively. Deposit types showing year-to-date increases include time deposits, increasing by $33.8 million, and money market accounts, increasing by $4.7 million. The Company has $5.0 million of brokered deposits within its funding mix at September 30, 2024. New net loan growth for 2024 is robust at $44.4 million.

The decline in deposit levels between December 31, 2023 and September 30, 2024 is attributed to growing competition for those deposits. The Federal Reserve Open Market Committee (FOMC) has aggressively increased interest rates in response to inflationary conditions and bank customers now have more alternatives as to where they invest their cash. Despite the outflow of deposits over the past 21 months, total deposits have still increased by $240.9 million since December 2019.

Stockholders' equity increased by $13.6 million to $87.9 million at September 30, 2024 from $74.3 million at December 31, 2023. The increase is primarily comprised of a decrease in the accumulated other comprehensive loss of $6.0 million, dividends paid to common shareholders of $3.0 million, and year-to-date earnings of $10.4 million.

Tangible book value per common share is $24.38 at September 30, 2024 compared to $20.52 at December 31, 2023.

Key Performance Ratios

Return on average assets (ROA) increased to 1.25% for the current quarter compared to 1.03% for the linked and 1.16% for the prior year quarter. Return on average equity (ROE) is 18.99%, 16.12% and 21.43% for the three comparative quarters ended September 2024, June 2024 and September 2023, respectively. ROA and ROE for the nine-month periods ended September 30, 2024 and 2023 is 1.18% and 0.98%, and 18.19% and 18.64%, respectively.

About JD Bancshares, Inc.

JD Bancshares, Inc. is the bank holding company of JD Bank, a Louisiana 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 21 full-service branch offices and two loan and deposit production offices located along the I-10 and I-12 corridors from Lake Charles to Mandeville, Louisiana. Additional information is available on its website at jdbank.com.

JD Bancshares, Inc. (OTCQX: JDVB) trades on the OTCQX Best Market. Companies on the OTCQX Best Market 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.

For more information contact:

Paul Brummett, II (CEO) (337-246-5395)

Jared Doucet (CFO) (337-246-5409)

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

		Actual Sep 2024				Actual Dec 2023				$ Variance				% Variance
Assets
Cash and due from banks			26,410,651				27,407,077				(996,426	)			(3.6	)
Interest bearing deposits with banks			9,742,716				47,128,161				(37,385,445	)			(79.3	)
Investment Securities - Taxable			238,247,649				243,375,614				(5,127,965	)			(2.1	)
Investment Securities - Tax-exempt			123,683,400				126,485,908				(2,802,508	)			(2.2	)
Loans, net of unearned income			729,972,973				685,618,017				44,354,956				6.5
Less: Allowance for credit losses			(8,994,326	)			(9,907,722	)			913,396				(9.2	)
Premises and equipment, net			20,318,265				21,668,586				(1,350,321	)			(6.2	)
Accrued interest receivable			4,607,509				4,908,323				(300,814	)			(6.1	)
Other real estate			2,460,126				1,513,964				946,162				62.5
Other assets			43,016,139				40,271,967				2,744,172				6.8
Total Assets			1,189,465,102				1,188,469,895				995,207				0.1
Liabilities
Non-Interest Bearing Deposits			239,711,670				254,516,587				(14,804,917	)			(5.8	)
Interest bearing demand deposits			288,606,600				311,708,545				(23,101,945	)			(7.4	)
Savings and Money Market Deposits			301,260,921				317,061,228				(15,800,307	)			(5.0	)
Time Deposits - Retail			178,424,807				144,650,491				33,774,316				23.3
Time Deposits - Wholesale			5,000,000				-				5,000,000				-
Total Deposits			1,013,003,998				1,027,936,851				(14,932,853	)			(1.5	)
Accrued expenses and other liabilities			8,749,442				6,267,474				2,481,968				39.6
Other Borrowings			79,783,561				79,906,591				(123,030	)			(0.2	)
Total Liabilities			1,101,537,001				1,114,110,916				(12,573,915	)			(1.1	)
Equity
Common stock			21,471,225				21,372,250				98,975				0.5
Capital surplus			10,554,284				10,294,678				259,606				2.5
Retained earnings			85,965,349				78,562,644				7,402,705				9.4
Accumulated other comprehensive income (loss)			(29,426,270	)			(35,506,973	)			6,080,703				(17.1	)
Less: unearned stock awards			(636,487	)			(363,620	)			(272,867	)			75.0
Total Equity			87,928,101				74,358,979				13,569,122				18.2
Total Liabilities & Equity			1,189,465,102				1,188,469,895				995,207				0.1

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

	QTD Actual Sep 2024			QTD Actual Jun 2024			$ Variance			% Variance			QTD Actual Sep 2023			$ Variance			% Variance
Interest Income
Interest on Loans		12,328,762			11,305,380			1,023,382			9.1			10,054,185			2,274,577			22.6
Mortgage Loans Held For Sale		3,265			4,784			(1,519	)		(31.8	)		8,213			(4,948	)		(60.2	)
Interest on deposits with banks		169,371			355,310			(185,939	)		(52.3	)		317,052			(147,681	)		(46.6	)
Investment Securities - Taxable		1,743,435			1,773,973			(30,538	)		(1.7	)		1,933,021			(189,586	)		(9.8	)
Investment Securities - Tax-exempt		770,502			775,604			(5,102	)		(0.7	)		781,796			(11,294	)		(1.4	)
Total Interest Income		15,015,335			14,215,051			800,284			5.6			13,094,267			1,921,068			14.7
Interest Expense
Interest bearing demand deposits		375,432			331,079			44,353			13.4			333,127			42,305			12.7
Savings and Money Market Deposits		645,331			580,933			64,398			11.1			507,377			137,954			27.2
Time Deposits - Retail		1,657,239			1,496,576			160,663			10.7			720,298			936,941			130.1
Time Deposits - Wholesale		42,740			-			42,740			-			-			42,740			-
Total Interest Expense on Deposits		2,720,742			2,408,588			312,154			13.0			1,560,802			1,159,940			74.3
Interest on other borrowings		935,047			916,318			18,729			2.0			698,643			236,404			33.8
Total Interest Expense		3,655,789			3,324,906			330,883			10.0			2,259,445			1,396,344			61.8
Net Interest Income		11,359,546			10,890,145			469,401			4.3			10,834,822			524,724			4.8
Provision for credit losses		(293,270	)		156,281			(449,551	)		(287.7	)		(36,920	)		(256,350	)		694.3
Net In. Inc. After Prov. for Credit Losses		11,652,816			10,733,864			918,952			8.6			10,871,742			781,074			7.2
Non Interest Income
Service charges and fees		2,192,216			2,164,976			27,240			1.3			2,224,841			(32,625	)		(1.5	)
Mortgage loan and related fees		104,986			123,900			(18,914	)		(15.3	)		123,787			(18,801	)		(15.2	)
Other noninterest income		537,498			533,519			3,979			0.7			562,600			(25,102	)		(4.5	)
Total Non Interest Income		2,834,700			2,822,395			12,305			0.4			2,911,228			(76,528	)		(2.6	)
Non Interest Expense
Salaries and employee benefits		5,458,658			5,485,248			(26,590	)		(0.5	)		5,156,945			301,713			5.9
Occupancy		1,329,326			1,289,716			39,610			3.1			1,390,439			(61,113	)		(4.4	)
Advertising and public relations		370,776			398,434			(27,658	)		(6.9	)		250,061			120,715			48.3
Data Processing		1,155,949			1,035,135			120,814			11.7			1,366,432			(210,483	)		(15.4	)
Other noninterest expense		1,697,383			1,730,143			(32,760	)		(1.9	)		1,430,952			266,431			18.6
Total Non Interest Expense		10,012,092			9,938,676			73,416			0.7			9,594,829			417,263			4.3
Income Before Taxes		4,475,424			3,617,583			857,841			23.7			4,188,141			287,283			6.9
Income taxes		769,321			588,750			180,571			30.7			695,289			74,032			10.6
Net Income		3,706,103			3,028,833			677,270			22.4			3,492,852			213,251			6.1
Per common share data:
Earnings	$	1.08		$	0.88								$	1.02
Weighted average number of shares outstanding		3,435,396			3,427,853									3,419,560

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		YTD Actual Sep 2024				YTD Actual Sep 2023				$ Variance				% Variance
Interest Income
Interest on Loans			34,501,945				29,559,390				4,942,555				16.7
Mortgage Loans Held For Sale			11,390				25,226				(13,836	)			(54.8	)
Interest on deposits with banks			926,706				773,467				153,239				19.8
Investment Securities - Taxable			5,296,419				5,871,876				(575,457	)			(9.8	)
Investment Securities - Tax-exempt			2,325,411				2,363,406				(37,995	)			(1.6	)
Total Interest Income			43,061,871				38,593,365				4,468,506				11.6
Interest Expense
Interest bearing demand deposits			1,034,411				904,688				129,723				14.3
Savings and Money Market Deposits			1,756,531				1,436,723				319,808				22.3
Time Deposits - Retail			4,450,131				1,613,964				2,836,167				175.7
Time Deposits - Wholesale			42,740				-				42,740				-
Total Interest Expense on Deposits			7,283,813				3,955,375				3,328,438				84.1
FHLB Advances			-				36,522				(36,522	)			(100.0	)
Interest on other borrowings			2,764,984				1,517,768				1,247,216				82.2
Total Interest Expense			10,048,797				5,509,665				4,539,132				82.4
Net Interest Income			33,013,074				33,083,700				(70,626	)			(0.2	)
Provision for credit losses			(822,577	)			928,749				(1,751,326	)			(188.6	)
Net In. Inc. After Prov. for Credit Losses			33,835,651				32,154,951				1,680,700				5.2
Non Interest Income
Service charges and fees			6,499,441				6,670,437				(170,996	)			(2.6	)
Mortgage loan and related fees			297,048				385,614				(88,566	)			(23.0	)
Other noninterest income			1,567,472				304,265				1,263,207				415.2
Total Non Interest Income			8,363,961				7,360,316				1,003,645				13.6
Non Interest Expense
Salaries and employee benefits			16,259,718				15,356,100				903,618				5.9
Occupancy			3,957,353				4,135,285				(177,932	)			(4.3	)
Advertising and public relations			1,102,716				904,803				197,913				21.9
Data Processing			3,500,443				3,913,459				(413,016	)			(10.6	)
Other noninterest expense			4,903,705				4,745,410				158,295				3.3
Total Non Interest Expense			29,723,935				29,055,057				668,878				2.3
Income Before Taxes			12,475,677				10,460,210				2,015,467				19.3
Income taxes			2,088,344				1,665,611				422,733				25.4
Net Income			10,387,333				8,794,599				1,592,734				18.1
Per common share data:
Earnings		$	3.03			$	2.57
Weighted average number of shares outstanding			3,425,837				3,420,219

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

	Average Yield and Rate									Average Funds									Interest Income/Expense
	QTD Actual Sep 2024			QTD Actual Sep 2023			Change			QTD Actual Sep 2024			QTD Actual Sep 2023			Change			QTD Actual Sep 2024			QTD Actual Sep 2023			Change
Earning Assets
Loans		6.74			5.93			0.81			727,277,984			672,609,097			54,668,887			12,328,763			10,054,185			2,274,578
Loan fees		-			-			-			-			-			-			-			-			-
Loans with fees		6.74			5.93			0.81			727,277,984			672,609,097			54,668,887			12,328,763			10,054,185			2,274,578
Mortgage loans held for sale		7.68			8.72			(1.04	)		169,960			376,875			(206,915	)		3,265			8,213			(4,948	)
Deposits with banks		5.60			5.30			0.30			12,034,365			23,732,117			(11,697,752	)		169,371			317,052			(147,681	)
Investment securities - taxable		2.52			2.22			0.30			277,179,876			348,900,279			(71,720,403	)		1,743,435			1,933,021			(189,586	)
Investment securities - tax-exempt		3.14			3.11			0.03			124,242,209			127,314,013			(3,071,804	)		770,502			781,796			(11,294	)
Total Earning Assets		5.31			4.51			0.80			1,140,904,394			1,172,932,381			(32,027,987	)		15,015,336			13,094,267			1,921,069
Interest bearing liabilities								-
Interest bearing demand		0.52			0.42			0.10			289,102,275			313,936,339			(24,834,064	)		375,432			333,127			42,305
Savings and Money Market		0.84			0.57			0.27			303,992,824			351,842,925			(47,850,101	)		645,331			507,377			137,954
Time deposits - Retail		3.75			2.37			1.38			175,719,108			120,539,555			55,179,553			1,657,239			720,298			936,941
Time Deposits - Wholesale		5.21			-			5.21			3,260,870			-			3,260,870			42,740			-			42,740
Total interest bearing deposits		1.40			0.79			0.61			772,075,077			786,318,819			(14,243,742	)		2,720,742			1,560,802			1,159,940
Federal home Loan Bank advances		-			-			-			-			-						-			-
Other borrowings		4.54			4.46			0.08			80,584,725			61,259,186			19,325,539			935,047			698,643			236,404
Total borrowed funds		4.54			4.46			0.08			80,584,725			61,259,186			19,325,539			935,047			698,643			236,404
Total interest-bearing liabilities		1.70			1.05			0.65			852,659,802			847,578,005			5,081,797			3,655,789			2,259,445			1,396,344
Net interest rate spread		3.61			3.46			0.15												11,359,547			10,834,822			524,725
Effect of non-interest bearing deposits		(0.38	)		(0.26	)		(0.12	)		241,192,050			278,960,273			(37,768,223	)
Cost of funds		1.32			0.79			0.53
Net interest margin		4.04			3.74			0.30

JD BANCSHARES, INC. AND SUBSIDIARIES
Margin Analysis Compare

	Average Yield and Rate									Average Funds									Interest Income/Expense
	YTD Actual Sep 2024			YTD Actual Sep 2023			Change			YTD Actual Sep 2024			YTD Actual Sep 2023			Change			YTD Actual Sep 2024			YTD Actual Sep 2023			Change
Earning Assets
Loans		6.50			5.88			0.62			708,709,938			671,611,674			37,098,264			34,501,945			29,559,390			4,942,555
Loan fees		-			-			-			-			-			-			-			-			-
Loans with fees		6.50			5.88			0.62			708,709,938			671,611,674			37,098,264			34,501,945			29,559,390			4,942,555
Mortgage loans held for sale		7.39			7.58			(0.19	)		205,573			443,722			(238,149	)		11,390			25,226			(13,836	)
Deposits with banks		5.51			5.03			0.48			22,477,610			20,566,846			1,910,764			926,706			773,467			153,239
Investment securities - taxable		2.51			2.19			0.32			281,551,947			356,830,249			(75,278,302	)		5,296,419			5,871,876			(575,457	)
Investment securities - tax-exempt		3.13			3.10			0.03			125,268,083			128,517,551			(3,249,468	)		2,325,411			2,363,406			(37,995	)
Total Earning Assets		5.12			4.45			0.67			1,138,213,151			1,177,970,042			(39,756,891	)		43,061,871			38,593,365			4,468,506
Interest bearing liabilities								-
Interest bearing demand		0.47			0.37			0.10			293,232,305			330,772,678			(37,540,373	)		1,034,411			904,688			129,723
Savings and Money Market		0.76			0.52			0.24			308,753,917			367,929,248			(59,175,331	)		1,756,531			1,436,723			319,808
Time deposits - Retail		3.66			1.88			1.78			162,244,916			114,500,220			47,744,696			4,450,131			1,613,964			2,836,167
Time Deposits - Wholesale		5.21			-			5.21			1,094,891			-			1,094,891			42,740			-			42,740
Total interest bearing deposits		1.27			0.65			0.62			765,326,029			813,202,146			(47,876,117	)		7,283,813			3,955,375			3,328,438
Federal home Loan Bank advances		11.16			5.22			5.94			4			923,077			(923,073	)		-			36,522			(36,522	)
Other borrowings		4.54			4.39			0.15			80,072,153			45,620,492			34,451,661			2,764,984			1,517,768			1,247,216
Total borrowed funds		4.54			4.40			0.14			80,072,157			46,543,569			33,528,588			2,764,984			1,554,290			1,210,694
Total interest-bearing liabilities		1.58			0.86			0.72			845,398,186			859,745,715			(14,347,529	)		10,048,797			5,509,665			4,539,132
Net interest rate spread		3.54			3.60			(0.06	)											33,013,074			33,083,700			(70,626	)
Effect of non-interest bearing deposits		(0.36	)		(0.21	)		(0.15	)		247,189,146			274,238,437			(27,049,291	)
Cost of funds		1.22			0.65			0.57
Net interest margin		3.95			3.81			0.14

JD BANCSHARES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

Financial Ratios
													For the Nine				For the Nine
	For the Qtr				For the Qtr				For the Qtr				Months				Months
	Ended				Ended				Ended				Ended				Ended
	September 30, 2024				June 30, 2024				September 30, 2023				September 30, 2024				September 30, 2023
Performance Ratios
Return on Average Assets (ROA)		1.25	%			1.03	%			1.16	%			1.18	%			0.98	%
ROA based on Pre-tax, pre-provision operating income		1.45	%			1.35	%			1.38	%			1.36	%			1.42	%
Return on Average Equity (ROE)		18.99	%			16.12	%			21.43	%			18.19	%			18.64	%
ROE based on Pre-tax, pre-provision operating income		21.96	%			21.02	%			25.49	%			20.91	%			27.14	%
Earnings per Share	$	1.08			$	0.88			$	1.02			$	3.03			$	2.57
Net Interest Margin		4.04	%			3.90	%			3.74	%			3.95	%			3.81	%
Efficiency Ratio **		68.82	%			70.13	%			68.74	%			70.08	%			68.26	%
Non-Interest Income as a % of Avg. Assets**		0.96	%			0.96	%			0.96	%			0.95	%			0.96	%
Non-Interest Expense as a % of Avg. Assets**		3.34	%			3.33	%			3.18	%			3.35	%			3.21	%

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FAQ

What was JDVB's net income for Q3 2024?

JD Bancshares reported net income of $3,706,103 or $1.08 per share for Q3 2024.

How did JDVB's nonperforming assets change in Q3 2024?

Total nonperforming assets decreased to $7.4 million at September 30, 2024, from $12.1 million at December 31, 2023.

What was JDVB's net interest margin in Q3 2024?

The net interest margin was 4.04% for Q3 2024, compared to 3.90% in Q2 2024.

How much did JDVB's deposits change in 2024?

Total deposits declined by $14.9 million through September 30, 2024, compared to December 31, 2023.