JD Bancshares, Inc. Reports Financial Results for Three and Twelve-Month Periods Ended December 31, 2021

Rhea-AI Summary

JD Bancshares, Inc. (OTCQX: JDVB) reported its financial results for Q4 and the full year of 2021. For Q4 2021, net income was $2.98 million ($0.87 per share), down from $3.54 million ($1.03 per share) in Q3 2021 but up from $2.30 million ($0.67 per share) in Q4 2020. Total net income for 2021 was $11.02 million, marking a 52.9% increase year-over-year. Key highlights include a 5.8% year-over-year growth in non-PPP loans, net interest income of $35.7 million, and a robust liquidity position following the issuance of $30 million in new subordinated debt.

Positive

• Net income for 2021 increased by 52.9% to $11.02 million compared to $7.20 million in 2020.
• Core net loan growth was the best since 2015, with non-PPP loan growth of 5.8%.
• Total deposits rose by $37.9 million or 3.3% year-over-year.

Negative

• Net interest income for Q4 2021 decreased by $484,000 from Q3 2021, partially due to lower outstanding loan balances.
• The net interest margin declined to 2.90% in Q4 2021 from 3.02% in Q3 2021.
• No provision for credit losses was recorded in Q4 2021, indicating potential underlying credit issues.

JENNINGS, LA / ACCESSWIRE / January 20, 2022 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the three and twelve-month periods ended December 31, 2021.

Net income is $2,977,819 or $0.87 per common share for the three-month period ended December 31, 2021 compared to $3,539,845 or $1.03 per common share for the linked quarter ended September 30, 2021 and $2,303,079 or $0.67 per share for the prior year quarter ended December 31, 2020. Although net income improved over the prior year comparative quarter, the impact of lower interest income in Q4 2021, combined with the net effect of two non-recurring items in the third quarter, resulted in a decline in net income compared to the linked quarter. Pre-tax, pre-provision operating income for the current quarter is $3,554,464 compared to $4,075,010 for the linked quarter and $2,508,474 for the comparative prior year quarter. Pre-tax, pre-provision operating income excludes taxes, provision for loan losses, net losses on the sale of other real estate owned, gains on the sale of investment securities and net gains on the disposal of fixed assets.

For the twelve-month period ended December 31, 2021, net income was $11,015,318 or $3.21 per share compared to $7,203,708 or $2.10 per share for the prior year comparative period. Pre-tax, pre-provision operating earnings for the two comparative twelve-month periods was $13,689,189 and $10,443,300, respectively.

Bruce W. Elder, President & CEO commented, "Despite a second year of COVID-19 and a slow moving recovery from the 2020 hurricane season, the Company showed improved earnings and solid net, non-PPP loan growth in 2021. Net income of $11.0 million for 2021 reflects a 52.9% increase over that of 2020. As economic conditions have improved, loan demand from businesses and consumers has increased and we enjoyed the best core, net loan growth since 2015. We still have a tremendous volume of liquidity on our balance sheet and will continue to look for opportunities to transition lower yielding assets to higher yielding assets."

Elder continued by saying "During the month of December, we were able to issue $30.0 million in new subordinated debt at a rate of 3.75%. A portion of the money was used on January 15, 2022 to redeem $17.5 million of previously issued subordinated debt carrying an interest rate of 6.75%. The remaining proceeds will be used to support our future growth and for other general corporate purposes."

Paycheck Protection Program Lending (PPP)

The Company made 1,422 PPP loans totaling $110.4 million between April 2020 and May 2021. Of the $74.0 million of PPP loans made in 2020, $60.7 million in loans remained outstanding at the end of 2020. An additional $36.4 million PPP loans were originated in 2021. As of December 31, 2021, $16.2 million in loans remain outstanding and $94.2 million have been repaid through SBA forgiveness and customer payments. Of the $94.2 million in total PPP loan repayments, $80.9 million in repayments occurred in 2021. Of the original $74.0 million in 2020 vintage loans, $72.3 million have been repaid and 5 loans totaling $1.7 million remain outstanding. Of the original $36.4 million of PPP loans made in 2021, $21.9 million have been repaid and 240 loans totaling $14.5 million remain outstanding. The 2021 vintage borrowers have until the middle of 2022 to apply for forgiveness and therefore some portion of these loans may remain outstanding well into 2022.

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. Amounts recognized as interest income for the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020 are $498,000, $799,000 and $555,000, respectively. Origination fees recognized for the two twelve-month periods ended December 31, 2021 and 2020 are $2,683,000 and $1,442,000, respectively. As of December 31, 2021, we had approximately $619,000 in deferred PPP origination fees to be recognized in future periods.

Asset Quality

Loans past due of 30 to 89 days at December 31, 2021 are $1.3 million or 0.21% of the total loans outstanding compared to $1.1 million or 0.18% of the total loan portfolio at September 30, 2021 and $1.3 million or 0.21% of total loans reported at December 31, 2020. Total nonperforming assets, including loans on non-accrual status, other real estate owned (OREO) and repossessed assets are $5.2 million at December 31, 2021 compared to $9.1 million at December 31, 2020. Loans on non-accrual status at December 31, 2021 decreased to $4.1 million from $8.8 million at December 31, 2020, OREO increased to $1.1 million from $291,000 and there are currently no repossessed assets compared to $33,000 a year ago. Management performs a quarterly evaluation of OREO properties and repossessions and believes the adjusted carrying values are representative of their fair market values, although there is no assurance that the ultimate sales will be equal or greater than the carrying values.

The Company did not record a provision for credit losses in either the current or linked quarters compared to $190,000 for the prior year quarter. The allowance for loan losses (ALLL) is $8.2 million at December 31, 2021 or 1.32% of total loans compared to $8.6 million at December 31, 2020 or 1.36% of total loans. Net charge offs are $723,000 for 2021 compared to $755,000 for the prior year comparative period. We believe the current level of our ALLL is adequate, but there is no assurance that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require future adjustments to the ALLL.

Net Interest Income

Net interest income for the current quarter is $9.0 million, a decrease of $484,000 compared to the $9.4 million for the linked quarter, and is $522,000 higher than the $8.4 million reported for the prior year quarter. The decline in net interest income between the September and December 2021 quarters is due to a reduction in average outstanding loan balances during the respective periods as well as a decrease in PPP origination fee recognition. Average loans outstanding for the current period were down $8.0 million compared to that of the linked quarter. Additionally, origination fees recognized as interest income due to PPP forgiveness was $301,000 more in Q3 than Q4. The increase in current quarter net interest over the prior year comparative quarter is primarily due to an increase in interest income from higher volumes of investment securities, partially offset by lower interest income on loans.

Net interest income for the year ended December 31, 2021 increased by $1.7 million or 4.9% to $35.7 million compared to $34.0 million for the year ended December 31, 2020. The increase is primarily attributable to higher interest income on securities and lower interest expense, offset by a decrease in interest income on loans. Due an overall increase in average volume of investment securities of $245.5 million, interest income from securities is $2.6 million more than the prior year. Interest expense declined by $346,000 despite an increase in average interest-bearing deposits of $193.0 million. Interest income on loans declined by $1.2 million during the year as a net result of lower average loan volume, partially offset by higher PPP origination fees.

The net interest margin for the current quarter was 2.90% and declined by 12 basis points from 3.02% for the linked quarter and 29 basis points compared to 3.19% for the prior year quarter. The yield on earning assets for the current quarter is 3.25% compared to 3.36% and 3.63% for the two comparative periods, respectively. The cost of funds is 0.35% for both the current and linked quarters compared to 0.43% for the prior year quarter. Net interest margin for the current year period is 2.91% compared to 3.76% for the prior year. The yield on earning assets and cost of funds for the two comparative year end periods were 3.27% and 4.28%, respectively, and 0.36% and 0.52%, respectively. Margins for the three and twelve month 2021 periods were adversely impacted by the volume of liquid assets on the Company's balance sheet invested in a low interest rate environment.

The Federal Open Market Committee (the "Committee") of the Federal Reserve Bank has signaled a tapering of their asset purchases to remove some of the accommodations of monetary policy during the first quarter of 2022. Additionally, Committee members believe that a number of future short-term rate hikes may be appropriate over the coming year. The Company's balance sheet is well positioned to benefit from a rising interest rate environment which will have a positive impact on net income. Additionally, with the majority of our PPP loan originations having been repaid and no longer being a significant headwind to net new loan growth, average loan volumes should improve during 2022.

Non-Interest Income

Total non-interest income is $3.3 million for the current three-month period compared to $3.8 million for the linked quarter and $3.0 million for the prior year quarter. Service charges and fees associated with deposit accounts are $2.3 million for Q4 2021 and increased by $30,000 and $431,000 compared to the linked and prior year quarters, respectively. Interchange revenue from debit card usage continues to be an important component of non-interest income contributing $1.3 million for both the current and linked quarters and $1.1 million for the prior year quarter.

While mortgage rates through the end of 2021 remained at attractive levels, the volume of mortgage activity in the fourth quarter tends to lag other quarters of the year due to the holidays. Gains on the sale of originated mortgages is $342,000 for the current quarter compared to $430,000 for the September 30, 2021 quarter and $249,000 for the prior year comparative quarter. Although interest rates on conventional mortgages may begin to increase in 2022, we anticipate rates to remain at attractive levels and demand for housing in our footprint continues to be robust as the region recovers from the hurricanes of 2020.

Other non-interest income is $691,000 for the current quarter compared to $1.1 million for the linked quarter and $895,000 for the prior year quarter. Revenue from our Trust and Investment Divisions are typically the largest components of other non-interest income. Revenue from investment activities is $313,000, $208,000 and $139,000 and revenue from trust activities is $161,000, $144,000 and $142,000 for the three comparative periods, respectively. The linked September 2021 and the prior year December 2020 quarters include non-recurring, non-operating revenue items. The September 30, 2021 quarter includes a $364,000 gain on a real estate land swap and the quarter ended December 31, 2020 includes a gain from disposal of fixed assets of $454,000.

Non-interest income for the twelve-month period ended December 31, 2021 was $13.0 million, an increase of $2.5 million over the $10.5 million reported for the comparative 2020 period. Interchange revenue from debit card usage increased by $1.7 million year over year, gain on sale of originated mortgage loans increased by $676,000 and other non-interest income increased by $23,000. Both periods include non-recurring gains on the sale of investment securities of $7,000 for the current period and $252,000 for the prior year period. The current year included the aforementioned gain on a real estate land swap of $364,000 and the prior year included gains on disposal of fixed assets of $506,000.

Non-Interest Expense

Total non-interest expense is $8.7 million for the current quarter compared to $9.0 million for linked quarter and $8.5 million for the fourth quarter of 2020. Salary and benefits expense is the largest component of non-interest expenses and is $4.6 million for the current period compared to $4.5 million for both the linked and prior year quarters. The prior year quarter salary expense includes a severance payment made to a former contractual employee who is no longer with the Company.

All other non-interest expense categories remained relatively stable over the three comparative periods. Occupancy expense is $1.4 million for the current and linked quarters compared with $1.3 million for the prior year quarter. Data processing expense is $1.0 million for both the current and linked quarters compared to $910,000 for the quarter from a year ago. Marketing, business development and public relations expenses total $313,000 in the current quarter compared to $269,000 in the linked quarter and $362,000 for the prior year quarter. Other non-interest expenses were $1.4 million for the current quarter compared to $1.7 million for the linked quarter and $1.5 million for the prior year quarter. The largest components of other non-interest expenses include real estate ad valorem fees, professional fees, FDIC insurance premiums, telecommunication costs, and losses associated with fraud. Net losses (gains) on the sale of OREO are $5,000, $(29,000) and $45,000 for the three comparative periods, respectively.

Non-interest expenses for the twelve-month period ended December 31, 2021 are $35.2 million, reflecting a $1.8 million increase compared to $33.5 million for the prior year. Increases in occupancy, data processing, FDIC insurance premiums, OREO expenses and fraud losses were partially offset by decreases in salary and employee benefits. Net losses on the sale of OREO for the current and prior twelve-month periods are $384,000 and $114,000, respectively. The Company also paid a penalty on the pre-payment of an FHLB advance of $200,000 in the current year.

Income tax expense is $571,000 for the current quarter compared to $728,000 for the Q3 2021 and $424,000 for Q4 2020. Income tax expense for the twelve months ended December 31, 2021 is $2.1 million with an effective rate of 16.21% compared to $1.1 million and 13.82% for the prior year twelve-month period. The increase in effective tax rate is primarily due to a larger percentage of revenue being derived from taxable sources.

Balance Sheet

Total assets are $1.4 billion at December 31, 2021, reflecting a $68.2 million or 5.3% increase over the $1.3 billion at December 31, 2020. Investment securities are up $144.9 million or 42.6% to $485.4 million from $340.5 million at the prior year end. Over the course of 2021, we transitioned $70.9 million of cash and interest-earning deposits with banks into the investment portfolio. The growth in our deposit base and additional liquidity generated through the issuance of a new tranche of subordinated debt was also deployed into the investment portfolio. The loan portfolio, net of unearned income, declined by $7.9 million during 2021 to $622.3 million from $630.2 million. As previously disclosed, we experienced $80.9 million in PPP loan repayments during 2021. Excluding the PPP repayments, the loan growth for 2021, was $73.0 million of which $36.4 million represented 2021 vintage PPP loans. Therefore, net new non-PPP related loan growth was $36.6 million or 5.8% year-over-year growth. This represents the largest net loan growth for the Company since 2015.

Total deposits are $1.2 billion at December 31, 2021, reflecting a $37.9 million or 3.3% increase over the total deposits reported at year end 2020. Savings accounts balances increased by $48.4 million or 16.2% and money market account balances increased by $32.0 million or 69.0%. Non-interest bearing demand deposits, time deposits and interest-bearing demand deposits declined by $29.2 million, $10.1 million and $3.3 million, respectively. The volume of government stimulus flowing into both personal and business deposit accounts during 2021 allowed customers to transfer excess funds from non-interest bearing accounts into interest-bearing money market and savings accounts. In 2021, we opened approximately 5,100 new non-maturity accounts with average opening balances of $17,800.

Other liabilities increased by approximately $27.8 million to $53.3 million at December 31, 2021. The increase is primarily due to the issuance of $30.0 million in new subordinated debt. The $17.5 million in subordinated debt issued in January 2017 was redeemed on January 15, 2022.

Stockholders' equity increased by $2.5 million to $101.2 million at December 31, 2021 from $98.7 million at December 31, 2020. The increase is primarily comprised of 2021 net income of $11.0 million, less the decrease in other comprehensive income of $5.3 million, less the dividends paid to common shareholders of $2.6 million. The tangible equity to assets ratio decreased to 7.16% at December 31, 2021 from 7.34% at December 31, 2020 primarily due to the drop in other comprehensive income. There were 3,430,060 common shares outstanding at December 31, 2021 and 1,558,757 shares outstanding at December 31, 2020. The increase in shares outstanding reflects a 10% stock dividend and a 2-for-1 stock split occurring in 2021. Tangible book value per common share increased to $28.30 at December 31, 2021 compared to $27.55 at December 31, 2020, as adjusted for the stock dividend and split.

Key Performance Ratios

Return on average assets (ROA) is 0.88% for the current quarter compared to 1.04% for the linked quarter and 0.76% for prior year quarter. Return on average equity (ROE) is 11.87%, 13.91% and 9.52% for the three comparative quarters ended December 2021, September 2021 and December 2020, respectively. ROA and ROE for the twelve-month periods ended December 31, 2021 and 2020 were 0.82% and 0.70%, and 11.24% and 7.65%, respectively.

About JD Bancshares, Inc.

JD Bancshares, Inc. is the bank holding company of JD Bank, a state chartered bank headquartered in Jennings, Louisiana. JD Bank has been serving the citizens of southwest Louisiana since 1947 and offers a variety of personal and commercial lending and deposit products through both physical and digital delivery channels. The Bank also offers both trust and investment services. JD Bank operates through 23 full service branch offices located along the Interstate 10 corridor from Lake Charles to Lafayette, Louisiana. JD Bancshares, Inc. may be accessed on its website at 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)

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

		Actual Dec 2021				Actual Dec 2020				$ Variance			% Variance
Assets
Cash and due from banks			18,552,783				23,526,805			(4,974,022	)		(21.1	)
Interest bearing deposits with banks			175,657,295				241,606,805			(65,949,510	)		(27.3	)
Investment Securities - Taxable			354,300,423				218,990,753			135,309,670			61.8
Investment Securities - Tax-exempt			131,081,611				121,492,318			9,589,293			7.9
Mortgage loans held for sale			705,950				918,649			(212,699	)		(23.2	)
Loans, net of unearned income			622,289,427				630,199,440			(7,910,013	)		(1.3	)
Less: Allowance for loan losses			(8,189,747	)			(8,583,238	)		393,491			4.6
Premises and equipment, net			23,160,984				23,130,055			30,929			0.1
Accrued interest receivable			4,443,379				4,837,067			(393,688	)		(8.1	)
Other real estate			1,053,698				290,700			762,998			262.5
Other assets			32,930,439				31,351,043			1,579,396			5.0
Total Assets			1,355,986,242				1,287,760,397			68,225,845			5.3
Liabilities
Non-Interest Bearing Deposits			419,021,687				448,228,877			(29,207,190	)		(6.5	)
Interest bearing demand deposits			241,045,730				244,337,657			(3,291,927	)		(1.3	)
Savings and Money Market Deposits			425,749,299				345,297,866			80,451,433			23.3
Time Deposits - Retail			115,623,464				125,681,460			(10,057,996	)		(8.0	)
Total Deposits			1,201,440,180				1,163,545,860			37,894,320			3.3
Accrued expenses and other liabilities			6,112,509				4,962,953			1,149,556			23.2
FHLB Advances			-				2,763,431			(2,763,431	)		(100.0	)
Other Borrowings			47,203,744				17,768,331			29,435,413			165.7
Total Liabilities			1,254,756,433				1,189,040,575			65,715,858			5.5
Equity
Common stock
3,430,060 shares outstanding at 12.31.21
1,558,757 shares outstanding at 12.31.20			21,437,875				9,742,231			11,695,644			120.1
Capital surplus			10,525,694				3,790,069			6,735,625			177.7
Retained earnings			68,165,101				78,783,577			(10,618,476	)		(13.5	)
Accumulated other comprehensive income (loss)			1,271,641				6,606,445			(5,334,804	)		(80.8	)
Less: Notes Receivable common stock			(170,502	)			(202,500	)		31,998			15.8
Total Equity			101,229,809				98,719,822			2,509,987			2.5
Total Liabilities & Equity			1,355,986,242				1,287,760,397			68,225,845			5.3

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		QTD Actual Dec 2021				QTD Actual Sep 2021				$ Variance			% Variance				QTD Actual Dec 2020				$ Variance			% Variance
Interest Income
Interest on Loans			8,018,863				8,541,665			(522,802	)			(6.1	)			8,327,843			(308,980	)		(3.7	)
Mortgage Loans Held For Sale			7,634				9,043			(1,409	)			(15.6	)			9,441			(1,807	)		(19.1	)
Interest on deposits with banks			32,778				37,399			(4,621	)			(12.4	)			51,956			(19,178	)		(36.9	)
Investment Securities - Taxable			1,198,469				1,166,788			31,681				2.7				507,798			690,671			136.0
Investment Securities - Tax-exempt			799,025				795,120			3,905				0.5				735,946			63,079			8.6
Total Interest Income			10,056,769				10,550,015			(493,246	)			(4.7	)			9,632,984			423,785			4.4
Interest Expense
Interest bearing demand deposits			212,282				219,322			(7,040	)			(3.2	)			248,121			(35,839	)		(14.4	)
Savings and Money Market Deposits			222,433				225,446			(3,013	)			(1.3	)			178,807			43,626			24.4
Time Deposits - Retail			267,077				296,849			(29,772	)			(10.0	)			396,605			(129,528	)		(32.7	)
Total Interest Expense on Deposits			701,792				741,617			(39,825	)			(5.4	)			823,533			(121,741	)		(14.8	)
FHLB Advances			-				24,572			(24,572	)			(100.0	)			30,655			(30,655	)		(100.0	)
Interest on other borrowings			393,261				338,535			54,727				16.2				338,674			54,587			16.1
Total Interest Expense			1,095,053				1,104,724			(9,670	)			(0.9	)			1,192,862			(97,809	)		(8.2	)
Net Interest Income			8,961,716				9,445,291			(483,576	)			(5.1	)			8,440,122			521,594			6.2
Provision for loan losses			-				-			-				-				190,000			(190,000	)		(100.0	)
Net In. Inc. After Prov. for Loan Losses			8,961,716				9,445,291			(483,576	)			(5.1	)			8,250,122			711,594			8.6
Non Interest Income
Service charges and fees			2,302,098				2,272,365			29,733				1.3				1,871,350			430,748			23.0
Mortgage loan and related fees			341,546				429,548			(88,002	)			(20.5	)			249,131			92,415			37.1
Other noninterest income			691,355				1,105,527			(414,172	)			(37.5	)			894,955			(203,600	)		(22.7	)
Total Non Interest Income			3,334,999				3,807,440			(472,441	)			(12.4	)			3,015,436			319,563			10.6
Non Interest Expense
Salaries and employee benefits			4,619,398				4,507,170			112,228				2.5				4,467,426			151,972			3.4
Occupancy			1,351,567				1,415,715			(64,148	)			(4.5	)			1,329,177			22,390			1.7
Advertising and public relations			312,802				269,098			43,704				16.2				362,350			(49,548	)		(13.7	)
Data Processing			1,046,661				1,046,492			169				0.0				909,798			136,863			15.0
Other noninterest expense			1,417,021				1,746,617			(329,596	)			(18.9	)			1,469,363			(52,342	)		(3.6	)
Total Non Interest Expense			8,747,449				8,985,092			(237,643	)			(2.6	)			8,538,114			209,335			2.5
Income Before Taxes			3,549,266				4,267,639			(718,373	)			(16.8	)			2,727,444			821,822			30.1
Income taxes			571,447				727,794			(156,347	)			(21.5	)			424,365			147,082			34.7
Net Income			2,977,819				3,539,845			(562,026	)			(15.9	)			2,303,079			674,740			29.3
Per common share data:**
Earnings		$	0.87			$	1.03										$	0.67
Weighted average number of shares outstanding			3,430,060				3,430,060											3,431,582
** Prior period shares outstanding adjusted for 10% stock dividend and stock split

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

		YTD Actual Dec 2021				YTD Actual Dec 2020				$ Variance				% Variance
Interest Income
Interest on Loans			32,747,704				33,912,967				(1,165,263	)			(3.4	)
Mortgage Loans Held For Sale			36,350				35,769				581				1.6
Interest on deposits with banks			170,593				274,095				(103,502	)			(37.8	)
Investment Securities - Taxable			4,089,734				1,829,762				2,259,972				123.5
Investment Securities - Tax-exempt			3,201,034				2,863,868				337,166				11.8
Total Interest Income			40,245,415				38,916,461				1,328,954				3.4
Interest Expense
Interest bearing demand deposits			907,787				911,878				(4,091	)			(0.4	)
Savings and Money Market Deposits			874,667				728,528				146,139				20.1
Time Deposits - Retail			1,255,034				1,742,962				(487,928	)			(28.0	)
Total Interest Expense on Deposits			3,037,488				3,383,368				(345,880	)			(10.2	)
FHLB Advances			85,263				151,948				(66,685	)			(43.9	)
Interest on other borrowings			1,409,120				1,348,658				60,462				4.5
Total Interest Expense			4,531,871				4,883,974				(352,103	)			(7.2	)
Net Interest Income			35,713,544				34,032,487				1,681,057				4.9
Provision for loan losses			330,000				2,728,000				(2,398,000	)			(87.9	)
Net In. Inc. After Prov. for Loan Losses			35,383,544				31,304,487				4,079,057				13.0
Non Interest Income
Service charges and fees			8,723,760				6,950,118				1,773,642				25.5
Mortgage loan and related fees			1,605,749				929,815				675,934				72.7
Other noninterest income			2,668,546				2,645,557				22,989				0.9
Total Non Interest Income			12,998,055				10,525,490				2,472,565				23.5
Non Interest Expense
Salaries and employee benefits			18,010,588				18,171,519				(160,931	)			(0.9	)
Occupancy			5,418,047				5,212,760				205,287				3.9
Advertising and public relations			1,309,977				1,353,780				(43,803	)			(3.2	)
Data Processing			4,206,408				3,684,994				521,414				14.1
Other noninterest expense			6,290,183				5,047,610				1,242,573				24.6
Total Non Interest Expense			35,235,203				33,470,663				1,764,540				5.3
Income Before Taxes			13,146,396				8,359,314				4,787,082				57.3
Income taxes			2,131,078				1,155,606				975,472				84.4
Net Income			11,015,318				7,203,708				3,811,610				52.9
Per common share data:**
Earnings		$	3.21			$	2.10
Weighted average number of shares outstanding			3,429,646				3,431,582
** Prior period shares outstanding adjusted for 10% stock dividend and stock split

JD BANCSHARES, INC. AND SUBSIDIARIES

Margin Analysis Compare

		Average Yield and Rate												Average Funds												Interest Income/Expense
		QTD Actual Dec 2021				QTD Actual Dec 2020				Change				QTD Actual Dec 2021				QTD Actual Dec 2020				Change				QTD Actual Dec 2021				QTD Actual Dec 2020				Change
Earning Assets
Loans			5.12				5.12				-				621,196,811				647,367,342				(26,170,531	)			8,018,863				8,327,843				(308,980	)
Mortgage loans held for sale			2.81				3.05				(0.24	)			1,088,271				1,238,141				(149,870	)			7,634				9,441				(1,807	)
Deposits with banks			0.09				0.13				(0.04	)			146,023,699				164,779,741				(18,756,043	)			32,778				51,956				(19,178	)
Investment securities - taxable			1.34				1.28				0.06				357,287,190				158,431,627				198,855,563				1,198,469				507,798				690,672
Investment securities - tax-exempt			3.08				3.51				(0.43	)			131,548,819				106,214,538				25,334,281				799,025				735,946				63,079
Total Earning Assets			3.25				3.63				(0.38	)			1,257,144,789				1,078,031,390				179,113,400				10,056,769				9,632,983				423,786
Interest bearing liabilities
Interest bearing demand			0.37				0.47				(0.10	)			228,041,526				212,156,507				15,885,019				212,282				248,121				(35,839	)
Savings and Money Market			0.21				0.22				(0.01	)			425,268,651				325,458,543				99,810,108				222,433				178,807				43,626
Time deposits - Retail			0.91				1.28				(0.37	)			116,582,367				122,874,110				(6,291,743	)			267,077				396,605				(129,527	)
Total interest bearing deposits			0.36				0.50				(0.14	)			769,892,545				660,489,160				109,403,385				701,792				823,533				(121,741	)
Federal home Loan Bank advances			-				4.30				(4.30	)			-				2,786,576				(2,786,576	)			-				30,655				(30,655	)
Other borrowings			6.77				7.49				(0.72	)			22,745,272				17,701,345				5,043,927				393,261				338,674				54,587
Total borrowed funds			6.77				7.05				(0.28	)			22,745,272				20,487,921				2,257,351				393,261				369,329				23,932
Total interest-bearing liabilities			0.55				0.69				(0.15	)			792,637,816				680,977,080				111,660,736				1,095,053				1,192,862				(97,809	)
Net interest rate spread			2.70				2.94				(0.24	)															8,961,716				8,440,122				521,594
Effect of non-interest bearing deposits			(0.20	)			(0.26	)			0.07				440,778,234				418,451,260				22,326,974
Cost of funds			0.35				0.43				(0.08	)
Net interest margin			2.90				3.19				(0.29	)

JD BANCSHARES, INC. AND SUBSIDIARIES

Margin Analysis Compare

		Average Yield and Rate												Average Funds												Interest Income/Expense
		YTD Actual Dec 2021				YTD Actual Dec 2020				Change				YTD Actual Dec 2021				YTD Actual Dec 2020				Change				YTD Actual Dec 2021				YTD Actual Dec 2020				Change
Earning Assets
Loans			5.23				5.22				0.01				626,591,937				649,983,257				(23,391,320	)			32,747,704				33,912,967				(1,165,263	)
Mortgage loans held for sale			2.82				2.99				(0.17	)			1,289,911				1,197,733				92,178				36,350				35,769				581
Deposits with banks			0.09				0.36				(0.27	)			183,132,101				76,599,799				106,532,302				170,593				274,095				(103,502	)
Investment securities - taxable			1.28				1.84				(0.56	)			320,289,550				99,560,583				220,728,966				4,089,734				1,829,762				2,259,972
Investment securities - tax-exempt			3.20				3.63				(0.43	)			126,495,386				99,729,193				26,766,194				3,201,034				2,863,868				337,166
Total Earning Assets			3.27				4.28				(1.01	)			1,257,798,885				927,070,565				330,728,320				40,245,416				38,916,461				1,328,955
Interest bearing liabilities
Interest bearing demand			0.39				0.52				(0.13	)			232,350,830				175,288,795				57,062,035				907,787				911,878				(4,091	)
Savings and Money Market			0.21				0.26				(0.05	)			410,157,555				278,176,670				131,980,885				874,667				728,528				146,139
Time deposits - Retail			1.02				1.47				(0.45	)			122,693,986				118,752,478				3,941,508				1,255,034				1,742,962				(487,927	)
Total interest bearing deposits			0.40				0.59				(0.19	)			765,202,371				572,217,943				192,984,428				3,037,489				3,383,368				(345,879	)
Federal home Loan Bank advances			4.61				2.28				2.33				1,825,362				6,549,964				(4,724,602	)			85,263				151,948				(66,684	)
Other borrowings			7.31				7.45				(0.14	)			19,018,043				17,812,517				1,205,526				1,409,120				1,348,658				60,462
Total borrowed funds			7.07				6.06				1.01				20,843,405				24,362,481				(3,519,076	)			1,494,383				1,500,605				(6,222	)
Total interest-bearing liabilities			0.57				0.81				(0.24	)			786,045,775				596,580,424				189,465,352				4,531,872				4,883,973				(352,101	)
Net interest rate spread			2.69				3.47				(0.77	)															35,713,544				34,032,488				1,681,056
Effect of non-interest bearing deposits			(0.21	)			(0.29	)			0.08				451,752,417				338,452,369				113,300,048
Cost of funds			0.36				0.52				(0.16	)
Net interest margin			2.91				3.76				(0.85	)

JD BANCSHARES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

Financial Ratios

		For the Qtr Ended Dec. 31, 2021				For the Qtr Ended Sept. 30, 2021				For the Qtr Ended Dec. 31, 2020				For the 12 Months Ended Dec. 31, 2021				For the 12 Months Ended Dec. 31, 2020
Performance Ratios
Return on Average Assets (ROA)			0.88	%			1.04	%			0.76	%			0.82	%			0.70	%
ROA based on Pre-tax, pre-provision operating income			1.05	%			1.19	%			0.83	%			1.36	%			1.35	%
Return on Average Equity (ROE)			11.87	%			13.91	%			9.52	%			11.24	%			7.65	%
ROE based on Pre-tax, pre-provision operating income			14.17	%			16.02	%			10.37	%			13.97	%			11.09	%
Earnings per Share***		$	0.87			$	1.03			$	0.67			$	3.21			$	2.10
Net Interest Margin			2.90	%			3.02	%			3.19	%			2.91	%			3.75	%
Efficiency Ratio **			69.89	%			68.80	%			75.85	%			70.44	%			74.86	%
Non-Interest Income as a % of Avg. Assets**			0.99	%			1.01	%			1.00	%			0.97	%			1.02	%
Non-Interest Expense as a % of Avg. Assets**			2.59	%			2.64	%			2.81	%			2.58	%			3.23	%

Capital

			As of Dec. 31				As of Dec. 31
			2021				2020
Tier 1 Leverage Ratio			7.20 (Est.)	%			7.44	%
Common Equity Tier 1 Ratio			12.70 (Est.)	%			13.12	%
Tier 1 Risk-Based Capital Ratio			12.70 (Est.)	%			13.12	%
Total Risk-Based Capital Ratio			13.78 (Est.)	%			14.37	%
Tangible Equity / Total Assets			7.16 (Est.)	%			7.34	%
Tangible Book Value per Share***		$	28.30			$	27.55

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

														For the Twelve			For the Twelve
		For the Qtr				For the Qtr				For the Qtr				Months			Months
		Ended				Ended				Ended				Ended			Ended
		Dec. 31, 2021				Sept. 30, 2021				Dec. 31, 2020				Dec. 31, 2021			Dec. 31, 2020
Net Income (GAAP)		$	2,977,819			$	3,539,845			$	2,303,079			$	11,015,318			$	7,203,708
Provision for Loan Lossess			-				-				190,000				330,000				2,728,000
Net (Gain) Loss on OREO			5,198				(28,535	)			45,300				383,569				114,332
Less: Net Gain on Securities			-				-				-				(6,682	)			(251,957	)
Non-recurring Expenses			-				199,656				-				199,656				-
Nonrecurring Revenue			-				(363,750	)			(454,270	)			(363,750	)			(506,389	)
Income Tax Expense			571,447				727,794				424,365				2,131,078				1,155,606
Pre-tax, Pre-Provision Operating Income		$	3,554,464			$	4,075,010			$	2,508,474			$	13,689,189			$	10,443,300
** Non-recurring items are eliminated for this ratio
*** Prior period shares outstanding adjusted for 10% stock dividend and stock split

CONTACT:

Bruce Elder (CEO) 337-246-5399
Paul Brummett (CFO) 337-246-5395

SOURCE: JD Bancshares, Inc.

View source version on accesswire.com:
https://www.accesswire.com/684786/JD-Bancshares-Inc-Reports-Financial-Results-for-Three-and-Twelve-Month-Periods-Ended-December-31-2021

FAQ

What were the earnings per share for JD Bancshares (JDVB) in Q4 2021?

Earnings per share for JD Bancshares in Q4 2021 were $0.87.

How much did JD Bancshares report in net income for the full year 2021?

JD Bancshares reported a net income of $11.02 million for the full year 2021.

What was the growth rate in non-PPP loans for JD Bancshares in 2021?

Non-PPP loans grew by 5.8% year-over-year for JD Bancshares in 2021.

What was the total amount of deposits for JD Bancshares at the end of 2021?

Total deposits for JD Bancshares at the end of 2021 were $1.2 billion.

What is the outlook for JD Bancshares following the financial results?

The company is well-positioned to benefit from rising interest rates, which could positively impact net income.