JD Bancshares, Inc. Reports Improved Financial Results for Q2 2021

Rhea-AI Summary

JD Bancshares, Inc. (OTCQX:JDVB) reported strong financial results for Q2 2021, with a net income of $2,593,570, or $1.51 per share, showing increases of 35% quarter-over-quarter and 57% year-over-year. For the six-month period, net income rose 41% to $4,513,549. Operating income for Q2 reached $3,222,715, reflecting a 13% increase. Total assets grew by 6% to $1.4 billion, while non-PPP loan demand improved, increasing by $25 million. However, net interest margin contracted to 2.85% due to high liquidity and low yields on assets.

Positive

• Net income increased by 35% from the previous quarter and 57% year-over-year.
• Total assets rose by $75.9 million (6%) to $1.4 billion.
• Non-PPP loans increased by $25 million during Q2.

Negative

• Net interest margin decreased from 4.05% to 2.85% year-over-year.
• Net charge-offs increased to $511,000 compared to $51,000 in the prior year.

JENNINGS, LA / ACCESSWIRE / July 26, 2021 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the three and six- month periods ended June 30, 2021.

Net income for the three-month period ended June 30, 2021 is $2,593,570 or $1.51 per common share compared to $1,919,989 or $1.12 per share for the linked quarter ended March 31, 2021 and $1,648,997 or $0.96 per share for the prior year quarter ended June 30, 2020. Net income for the current period increased by 35% and 57% over the linked and prior year periods, respectively. Pre-tax, pre-provision operating income for the quarter ended June 30, 2021 is $3,222,715, reflecting a 13% increase over both the $2,852,906 for the March 31, 2021 quarter and $2,847,643 for the quarter ended June 30, 2020. Pre-tax, pre-provision operating income excludes taxes, provision for loan losses, losses on the sale of other real estate owned, net gains on the sale of investment securities and other non-recurring items. Earnings in the current period is positively impacted by increases in net interest income and non-interest income which more than offset higher non-interest expenses.

For the six-month period ended June 30, 2021, net income is up 41% to $4,513,549 or $2.63 per share compared to $3,206,711 or $1.87 per share for the prior year comparative period. Pre-tax, pre-provision operating earnings for the two comparative six-month periods was $6,075,609 and $5,349,892, respectively.

Bruce Elder, President and CEO, commented, "The Company experienced unprecedented growth over the last 15 months and it is difficult to determine whether that growth is temporary or more permanent. There remains significant amounts of government sponsored stimulus in the local southern Louisiana economy, coupled with supply chain issues and labor shortages that have resulted in hurricane related insurance proceeds to be held in deposit accounts rather than being spent on repairs. While we continue to monitor trends in asset levels, we are encouraged by Q2 earnings and know we must transition existing assets from cash and investments to loans in order to fully realize the earnings potential of our new size."

Elder continued by commenting, "Demand for loans is improving as we saw net growth in non-PPP loans of $25.0 million in Q2 compared to the contraction of non-PPP loans in the first quarter of $9.5 million. Although we are focused on and committed to growing our loan portfolio in a safe and sound fashion, the continuing repayment of PPP loans is a headwind. We will look to add talented bankers who can help us achieve our loan growth objectives."

Paycheck Protection Program Lending
The Company participated in the Paycheck Protection Program (PPP) designed to encourage businesses to keep people employed through the COVID-19 pandemic. We made PPP loans in both the initial 2020 roll-out and also the subsequent 2021 extension of the program. In total, we assisted 1,422 borrowers with PPP loans totaling $110.4 million. As of June 30, 2021, we have $47.7 million PPP loans outstanding and $62.7 million have been repaid. Of the original $74.0 million in 2020 vintage loans, $61.4 million have been repaid and 23 loans totaling $12.6 million remain outstanding. We anticipate a large percentage of these loans originated in 2020 will apply for forgiveness and be repaid during the third quarter of 2021. Of the original $36.4 million PPP loans made in 2021, $35.1 million remain outstanding.

The Company received origination fees from the Small Business Administration (SBA) for participating in the program. We recognize a portion of the origination fee as interest income, in an amount estimated to be our internal cost of origination, in the period in which the loan is made and amortize the remainder 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 include $572,000, $814,000 and $633,000 for the quarters ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Origination fees recognized for the two six-month periods ended June 30, 2021 and 2020 were $1,368,000 and $633,000, respectively. As of June 30, 2021, we had approximately $1.9 million in deferred PPP origination fees to be recognized in future periods.

Asset Quality
Loans past due 30 to 89 days are $803,000 representing 0.13% of the total loan portfolio at June 30, 2021 compared to $1.3 million or 0.28% at December 31, 2020. Although management is encouraged by the current level of past due loans, there continues to be significant liquidity in the economy that could cause current past due loans to be at lesser levels than might otherwise be experienced in a more normal environment. Management will continue to closely monitor the past due levels as the effects of the various stimulus programs begin to ease.

Total nonperforming assets, including loans on non-accrual status, other real estate owned (OREO) and repossessed assets decreased to $6.1 million at June 30, 2021 from $9.1 million at December 31, 2020. Loans on non-accrual status declined to $5.6 million from $8.8 million at year end 2020. OREO increased to $353,000 from $291,000 and repossessed assets increased to $142,000 from $33,000 during the first six months of 2021. 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 recorded $165,000 in provisions for credit losses in both the current and linked quarters of 2021 compared to $897,000 in the quarter ended June 30, 2020. The allowance for loan losses (ALLL) is $8.4 million at June 30, 2021 or 1.33% of total loans compared to $8.6 million at December 31, 2020 or 1.36% of total loans. PPP loans carry a 100% SBA guarantee and when these loans are excluded from the calculation, the allowance as a percentage of total loans at June 30, 2021 and December 31, 2020 are 1.44% and 1.51%, respectively. Net charge offs are $511,000 for the first six months of 2021 compared to $51,000 for the comparative 2020 period. While we believe the current level of our ALLL is adequate, there is no assurance that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require additional adjustments to the ALLL.

Net Interest Income
For the quarter ended June 30, 2021, net interest income is $8.9 million, reflecting a $485,000 increase over the $8.4 million for the linked March quarter and a $179,000 increase over the $8.7 million reported for the prior year period. The net interest margin for the three-month period ended June 30, 2021 is 2.85% compared to 4.05% for the comparative prior year period ended June 30, 2020. Although net interest income has increased over the comparative period, net interest margin continued to contract due to the high level of liquidity invested in low yielding assets. Average earning assets for the current quarter are $399.4 million greater than that of the quarter ended June 30, 2020, but the yield on those assets has dropped by 140 basis points from 4.60% to 3.20%. The cost of funds for the current quarter is 0.36% compared to 0.54% for the prior year period. The net interest margin for the linked three-month period ended March 31, 2021 was 2.87%.

The sharp increase in average assets has been driven by the surge in deposits caused by the previously mentioned PPP program, stimulus dollars being injected by the U.S. Government and insurance proceeds received by customers waiting for resolutions to supply chain and labor shortages in order to repair hurricane damage. Although new non-PPP loan demand has improved over the last three months, the percentage of loans held for investment to total earning assets has declined to 49% in the current quarter compared to 76% in the quarter ended June 30, 2020. The significant increase in assets invested in interest bearing accounts with other banks and investment securities, the yields of which remain depressed in the post-pandemic economy, has caused a sharp decline in net interest margin while still providing an incremental improvement in net interest income.

Net interest income is $17.3 million for both six-month periods ended June 30, 2021 and 2020. Net interest margin for the current six-month period is 2.85% compared to 4.20% for the comparative 2020 period. The total yield on earning assets declined from 4.79% to 3.23% due to the high volume of earning assets invested in low yielding assets. The cost of funds declined by 21 basis points from 0.59% to 0.38%.

Non-Interest Income
Total non-interest income is $3.2 million for the current quarter compared to $2.7 million for the linked March quarter and $2.3 million for the prior year quarter. Service charges and fees associated with deposit accounts accounted for the largest increases growing by $227,000 and $589,000 over the linked and prior year quarters, respectively. Interchange revenue from debit card usage and ATM surcharge fees increased to $1.4 million compared to $1.2 million for the quarter ended March 31, 2021 and $893,000 for the prior year quarter. The increase reflects the impact of the economic re-opening and the volume of new customer acquisition over the past 12 months. Another revenue source showing some positive signs of pandemic recovery is NSF fees. NSF fees are $523,000 for the quarter ended June 30, 2021 compared to $474,000 for the linked quarter and $442,000 for the prior year quarter.

Revenue from the sale of mortgage loans in the current period is $498,000, representing a $161,000 increase over the $337,000 recognized for the second quarter of 2021 and a $232,000 increase over the $266,000 recorded in the prior year quarter. Mortgage rates continue to be at levels making both refinancing and new purchase money transactions very attractive. Other non-interest income is $494,000 for the current quarter compared to $378,000 for the linked quarter and $484,000 for the prior year quarter. Both the current and linked quarters included net gains on the sale of investment securities of $5,000 and $2,000, respectively.

Non-interest income for the six-month period ended June 30, 2021 is $5.9 million, increasing by $1.2 million or 26% from the $4.7 million reported for the first half of 2020. Due to a surge in interchange revenue and surcharge fees, service charges and fees associated with deposit accounts is up $804,000 to $4.1 million and revenue from the sale of mortgage loans is up $434,000 to $835,000 for the current six-month period. Other non-interest income declined by $34,000 to $872,000. Net gains on the sale of investment securities is $7,000 for the current period with no sales occurring in the prior year period.

Non-Interest Expense
Total non-interest expense is $8.8 million for the quarter ended June 30, 2021 compared to $8.6 million and $8.3 million for the March 2021 and June 2020 quarters, respectively. Salary and employee benefits expense for the current quarter is $4.5 million, $4.3 million for the linked quarter and $4.5 million for the prior year quarter. Items contributing to the current quarter increase include annual merit increases which take effect on April 1 of each year, the opening of a new branch in Lafayette, Louisiana and the larger commissions paid due to the higher volume of mortgage loans originated. We continue to explore hiring additional commercial lending personnel and therefore anticipate salaries and employee benefits expense to increase in future periods.

Occupancy expense is relatively stable at $1.3 million in each of the three comparative quarters. Data processing expense is $1.1 million, up $157,000 over the $978,000 recorded in the linked quarter and up $218,000 over the $918,000 for the quarter ended June 30, 2020. The increases relate to the volume of accounts being processed, technology expenses related to the Bank's PPP program and the implementation of additional products. Marketing, business development and public relations expenses are $376,000 reflecting a slight increase over the $352,000 and $349,000 for the linked and prior year periods, respectively. Other non-interest expenses are $1.4 million for the current quarter, $1.7 million for the linked quarter and $1.2 million for the prior year quarter. The three-month period ended March 31, 2021 included $408,000 of losses on OREO. The primary reason for the increase in recurring, operating expenses is FDIC insurance assessments which increased by $131,000 compared to the linked quarter and $166,000 compared to the prior year quarter. The largest components of non-interest expenses are comprised of professional fees, FDIC insurance assessments, telecommunication expenses, accruals for ad valorem taxes and other losses.

Non-interest expenses for the six-month period ended June 30, 2021 are $17.5 million, up $820,000 or 5% from $16.7 million for the prior year. Increases in losses on OREO, data processing, FDIC insurance premiums and debit card fraud are partially offset by a decrease in salaries and employee benefits expense.

Income tax expense is $470,000 for the current quarter compared to $362,000 for the March 2021 quarter and $261,000 for the June 2020 quarter. The increase is primarily due to growth in pre-tax income. The effective tax rate is 15.34% in the current quarter compared to 15.85% for the linked quarter and 13.66% in the prior year quarter. A smaller percentage of total pre-tax income in the current quarter is from tax-exempt sources than a year ago. Year-to-date, income tax expense was $832,000 with an effective rate of 15.56% compared to $497,000 and 13.43% for the prior year six-month period.

Balance Sheet
Total assets are $1.4 billion at June 30, 2021, reflecting a $75.9 million or 6% increase over the $1.3 billion at December 31, 2020. Loans held for investment constitutes the largest asset category at $632.7 million, reflecting a $2.5 million increase over the $630.2 million reported at year-end 2020. The $2.5 million increase is comprised of a net increase of $15.5 million in non-PPP loans and a net decline in PPP loans of $13.0 million. Investment securities grew by $149.4 million or 44% to $489.9 million at June 30, 2021. Cash and interest bearing deposits with banks declined by $79.6 million as a portion of these low yielding funds were deployed into slightly higher yielding investments.

Total deposits increased by $73.6 million or 6% to $1.2 billion at June 30, 2021. Savings, money market and non-interest bearing demand increased by $47.0 million, $32.9 million and $10.2 million, respectively, and interest-bearing demand and time deposits declined by $12.4 million and $4.1 million, respectively. The total of all other liabilities increased by $1.1 million to $26.6 million from $25.5 million at December 31, 2020.

Stockholders' equity increased by $1.1 million to $99.8 million at June 30, 2021 from $98.7 million at December 31, 2020. Net income of $4.5 million was partially offset by a $1.9 million decline in other comprehensive income and dividends paid of $1.5 million. The Company paid a 10% stock dividend in January 2021 resulting in 1,715,030 common shares outstanding at June 30, 2021 compared to 1,558,757 common shares outstanding at December 31, 2020. Tangible book value per common share increased to $55.76 at June 30, 2021 compared to $55.12 at December 31, 2020.

Key Performance Ratios
Return on average assets (ROA) is 0.76% for the current quarter compared to 0.60% for the linked quarter and 0.66% for the prior year quarter. ROA for both the current and prior year six-month periods ended June 30, 2021 and 2020 is 0.68%. Return on average equity (ROE) is 11.11% for the current three-month period, 7.97% for the linked period and 7.12% for the prior year period. ROE for the six-month period ended June 30, 2021 is 9.51% compared to 6.98% for the prior year period. ROA and ROE for the three-month period ended March 31, 2021 and the six-month period ended June 30, 2021 were adversely impacted by the loss on OREO. Both performance metrics for the three and six-month periods ended June 30, 2020 were impacted by significant loan loss provisions due to the pandemic.

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 www.jdbank.com/investor relations .

JD Bancshares, Inc. (OTCQX:JDVB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com .

Forward-Looking Statements
Statements contained in this release, which are not historical facts, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, the effects of competition, and including without limitation to other factors that could cause actual results to differ materially as discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

CONTACT:
JD Bancshares, Inc.
Bruce Elder (CEO), (337-246-5399)
Paul Brummett (CFO), (337-824-1422)
Website: www.jdbank.com
(OTCQX:JDVB)

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		Actual Jun 2021				Actual Dec 2020				$ Variance				% Variance
Assets
Cash and due from banks			30,978,105				23,526,805				7,451,300				31.7
Interest bearing deposits with banks			154,594,600				241,606,805				(87,012,205	)			(36.0	)
Investment Securities - Taxable			363,733,317				218,990,753				144,742,564				66.1
Investment Securities - Tax-exempt			126,132,837				121,492,318				4,640,519				3.8
Mortgage loans held for sale			2,651,195				918,649				1,732,546				188.6
Loans, net of unearned income			632,675,028				630,199,440				2,475,588				0.4
Less: Allowance for loan losses			(8,403,621	)			(8,583,238	)			179,617				(2.1	)
Premises and equipment, net			23,043,549				23,130,055				(86,506	)			(0.4	)
Accrued interest receivable			4,692,660				4,837,067				(144,407	)			(3.0	)
Other real estate			352,946				290,700				62,246				21.4
Other assets			33,167,642				31,351,043				1,816,599				5.8
Total Assets			1,363,618,258				1,287,760,397				75,857,861				5.9
Liabilities
Non-Interest Bearing Deposits			458,435,626				448,228,877				10,206,749				2.3
Interest bearing demand deposits			231,942,734				244,337,657				(12,394,923	)			(5.1	)
Savings and Money Market Deposits			425,186,064				345,297,866				79,888,198				23.1
Time Deposits - Retail			121,601,427				125,681,460				(4,080,033	)			(3.2	)
Total Deposits			1,237,165,851				1,163,545,860				73,619,991				6.3
Accrued expenses and other liabilities			6,277,971				4,962,954				1,315,017				26.5
FHLB Advances			2,637,170				2,763,431				(126,261	)			(4.6	)
Other Borrowings			17,729,197				17,768,330				(39,133	)			(0.2	)
Total Liabilities			1,263,810,189				1,189,040,575				74,769,614				6.3
Equity
Common stock			10,715,812				9,742,231				973,581				10.0
Capital surplus			10,525,694				3,790,069				6,735,625				177.7
Retained earnings			69,498,422				71,579,869				(2,081,447	)			(2.9	)
Accumulated other comprehensive income (loss)			4,699,140				6,606,445				(1,907,305	)			(28.9	)
Less: Notes Receivable common stock			(144,547	)			(202,500	)			57,953				(28.6	)
Net Income			4,513,548				7,203,708				(2,690,160	)			(37.3	)
Total Equity			99,808,069				98,719,822				1,088,247				1.1
Total Liabilities & Equity			1,363,618,258				1,287,760,397				75,857,861				5.9

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
		QTD Actual Jun 2021				QTD Actual Mar 2021				$ Variance				% Variance				QTD Actual Jun 2020				$ Variance				% Variance
Interest Income
Interest on Loans			8,119,069				8,068,107				50,962				0.6				8,729,091				(610,022	)			(7.0	)
Mortgage Loans Held For Sale			11,093				8,580				2,514				29.3				7,115				3,978				55.9
Interest on deposits with banks			42,119				58,765				(16,646	)			(28.3	)			85,381				(43,262	)			(50.7	)
Investment Securities - Taxable			1,060,427				664,049				396,378				59.7				405,179				655,249				161.7
Investment Securities - Tax-exempt			806,077				800,813				5,263				0.7				709,402				96,674				13.6
Total Interest Income			10,038,785				9,600,314				438,471				4.6				9,936,168				102,617				1.0
Interest Expense
Interest bearing demand deposits			231,346				244,836				(13,490	)			(5.5	)			216,511				14,835				6.9
Savings and Money Market Deposits			215,488				211,300				4,188				2.0				173,370				42,118				24.3
Time Deposits - Retail			326,831				364,277				(37,445	)			(10.3	)			453,825				(126,994	)			(28.0	)
Total Interest Expense on Deposits			773,665				820,413				(46,747	)			(5.7	)			843,706				(70,041	)			(8.3	)
FHLB Advances			30,435				30,256				178				0.6				36,892				(6,457	)			(17.5	)
Interest on other borrowings			338,533				338,792				(259	)			(0.1	)			338,534				-				-
Total Interest Expense			1,142,633				1,189,461				(46,828	)			(3.9	)			1,219,132				(76,498	)			(6.3	)
Net Interest Income			8,896,152				8,410,853				485,299				5.8				8,717,036				179,115				2.1
Provision for loan losses			165,000				165,000				-				-				897,000				(732,000	)			(81.6	)
Net In. Inc. After Prov. for Loan Losses			8,731,152				8,245,853				485,299				5.9				7,820,036				911,115				11.7
Non Interest Income
Service charges and fees			2,188,293				1,961,005				227,289				11.6				1,599,294				589,000				36.8
Mortgage loan and related fees			497,890				336,766				161,124				47.8				266,170				231,720				87.1
Other noninterest income			494,005				377,681				116,323				30.8				483,694				10,311				2.1
Total Non Interest Income			3,180,188				2,675,452				504,736				18.9				2,349,158				831,031				35.4
Non Interest Expense
Salaries and employee benefits			4,546,180				4,337,839				208,340				4.8				4,537,459				8,721				0.2
Occupancy			1,342,845				1,307,920				34,925				2.7				1,267,802				75,043				5.9
Advertising and public relations			376,300				351,774				24,526				7.0				348,689				27,611				7.9
Data Processing			1,135,337				977,918				157,419				16.1				917,778				217,559				23.7
Other noninterest expense			1,447,001				1,664,135				(217,134	)			(13.0	)			1,187,492				259,509				21.9
Total Non Interest Expense			8,847,663				8,639,586				208,076				2.4				8,259,220				588,443				7.1
Income Before Taxes			3,063,677				2,281,719				781,959				34.3				1,909,974				1,153,703				60.4
Income taxes			470,107				361,730				108,377				30.0				260,977				209,130				80.1
Net Income			2,593,570				1,919,989				673,582				35.1				1,648,997				944,573				57.3
Per common share data:**
Earnings		$	1.51			$	1.12											$	0.96
Weighted average number of shares outstanding			1,714,695				1,714,530												1,716,000
** Prior period shares outstanding adjusted for 10% stock dividend

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
		YTD Actual Jun 2021				YTD Actual Jun 2020				$ Variance				% Variance
Interest Income
Interest on Loans			16,187,176				17,371,313				(1,184,137	)			(6.8	)
Mortgage Loans Held For Sale			19,673				13,453				6,220				46.2
Interest on deposits with banks			100,884				144,223				(43,339	)			(30.0	)
Investment Securities - Taxable			1,724,477				859,669				864,808				100.6
Investment Securities - Tax-exempt			1,606,890				1,429,714				177,176				12.4
Total Interest Income			19,639,100				19,818,372				(179,272	)			(0.9	)
Interest Expense
Interest bearing demand deposits			476,182				444,091				32,092				7.2
Savings and Money Market Deposits			426,788				385,534				41,254				10.7
Time Deposits - Retail			691,108				926,011				(234,904	)			(25.4	)
Total Interest Expense on Deposits			1,594,078				1,755,636				(161,558	)			(9.2	)
FHLB Advances			60,691				91,405				(30,715	)			(33.6	)
Interest on other borrowings			677,326				671,449				5,876				0.9
Total Interest Expense			2,332,095				2,518,490				(186,397	)			(7.4	)
Net Interest Income			17,307,005				17,299,882				7,125				-
Provision for loan losses			330,000				1,580,000				(1,250,000	)			(79.1	)
Net In. Inc. After Prov. for Loan Losses			16,977,005				15,719,882				1,257,125				8.0
Non Interest Income
Service charges and fees			4,149,298				3,345,773				803,525				24.0
Mortgage loan and related fees			834,656				400,569				434,086				108.4
Other noninterest income			871,675				905,487				(33,812	)			(3.7	)
Total Non Interest Income			5,855,629				4,651,829				1,203,799				25.9
Non Interest Expense
Salaries and employee benefits			8,884,019				9,160,162				(276,143	)			(3.0	)
Occupancy			2,650,765				2,562,107				88,658				3.5
Advertising and public relations			728,075				716,839				11,236				1.6
Data Processing			2,113,255				1,875,816				237,439				12.7
Other noninterest expense			3,111,135				2,352,704				758,431				32.2
Total Non Interest Expense			17,487,249				16,667,628				819,621				4.9
Income Before Taxes			5,345,385				3,704,083				1,641,303				44.3
Income taxes			831,836				497,372				334,464				67.2
Net Income			4,513,549				3,206,711				1,306,839				40.8
Per common share data:**
Earnings		$	2.63			$	1.87
Weighted average number of shares outstanding			1,714,613				1,716,000
** Prior period shares outstanding adjusted for 10% stock dividend

JD BANCSHARES, INC. AND SUBSIDIARIES Margin Analysis Compare
		Average Yield and Rate										Average Funds										Interest Income/Expense
		QTD Actual Jun 2021			QTD Actual Jun 2020			Change				QTD Actual Jun 2021			QTD Actual Jun 2020			Change				QTD Actual Jun 2021			QTD Actual Jun 2020			Change
Earning Assets
Loans			5.16			5.25			(0.09	)			631,722,987			668,932,880			(37,209,893	)			8,119,069			8,729,091			(610,022	)
Mortgage loans held for sale			2.73			2.78			(0.05	)			1,626,938			1,024,414			602,523				11,093			7,115			3,978
Deposits with banks			0.09			0.72			(0.63	)			192,397,277			47,708,728			144,688,549				42,119			85,381			(43,262	)
Investment securities - taxable			1.27			2.34			(1.07	)			333,067,386			69,226,938			263,840,448				1,060,427			405,179			655,249
Investment securities - tax-exempt			3.27			3.69			(0.42	)			124,923,272			97,464,172			27,459,100				806,077			709,402			96,674
Total Earning Assets			3.20			4.60			(1.40	)			1,283,737,859			884,357,132			399,380,727				10,038,785			9,936,168			102,618
Interest bearing liabilities
Interest bearing demand			0.39			0.52			(0.13	)			239,369,603			165,954,419			73,415,184				231,346			216,511			14,835
Savings and Money Market			0.21			0.26			(0.05	)			410,979,581			271,545,940			139,433,641				215,488			173,370			42,118
Time deposits - Retail			1.05			1.55			(0.50	)			125,124,844			117,666,743			7,458,100				326,831			453,825			(126,994	)
Total interest bearing deposits			0.40			0.61			(0.21	)			775,474,029			555,167,102			220,306,926				773,666			843,706			(70,040	)
Federal home Loan Bank advances			4.51			1.47			3.04				2,669,211			9,919,082			(7,249,871	)			30,435			36,892			(6,457	)
Other borrowings			7.56			7.64			(0.08	)			17,708,780			17,540,168			168,611				338,533			338,534			-
Total borrowed funds			7.16			5.41			1.75				20,377,991			27,459,250			(7,081,260	)			368,968			375,426			(6,458	)
Total interest-bearing liabilities			0.57			0.84			(0.26	)			795,852,019			582,626,353			213,225,666				1,142,633			1,219,132			(76,498	)
Net interest rate spread			2.63			3.76			(1.14	)													8,896,152			8,717,036			179,116
Effect of non-interest bearing deposits			(0.21	)		(0.30	)		0.08				467,574,966			324,018,573			143,556,393
Cost of funds			0.36			0.54			(0.18	)
Net interest margin			2.85			4.05			(1.20	)

JD BANCSHARES, INC. AND SUBSIDIARIES Margin Analysis Compare
		Average Yield and Rate									Average Funds									Interest Income/Expense
		YTD Actual Jun 2021			YTD Actual Jun 2020			Change			YTD Actual Jun 2021			YTD Actual Jun 2020			Change			YTD Actual Jun 2021			YTD Actual Jun 2020			Change
Earning Assets
Loans			5.20			5.42			(0.22	)		628,002,974			644,707,508			(16,704,534	)		16,187,176			17,371,313			(1,184,137	)
Mortgage loans held for sale			2.72			2.78			(0.06	)		1,444,717			969,187			475,530			19,673			13,453			6,220
Deposits with banks			0.09			0.83			(0.74	)		217,030,849			35,042,840			181,988,008			100,884			144,223			(43,339	)
Investment securities - taxable			1.23			2.54			(1.31	)		281,160,093			67,794,672			213,365,421			1,724,477			859,669			864,808
Investment securities - tax-exempt			3.29			3.68			(0.39	)		123,767,400			98,303,421			25,463,979			1,606,890			1,429,714			177,176
Total Earning Assets			3.23			4.79			(1.56	)		1,251,406,033			846,817,628			404,588,404			19,639,100			19,818,370			(179,271	)
Interest bearing liabilities
Interest bearing demand			0.41			0.56			(0.15	)		237,039,809			160,394,799			76,645,011			476,183			444,091			32,092
Savings and Money Market			0.22			0.31			(0.09	)		393,655,146			253,349,336			140,305,810			426,788			385,534			41,254
Time deposits - Retail			1.10			1.60			(0.50	)		126,222,916			116,376,867			9,846,050			691,108			926,011			(234,904	)
Total interest bearing deposits			0.42			0.67			(0.25	)		756,917,872			530,121,002			226,796,870			1,594,078			1,755,636			(161,558	)
Federal home Loan Bank advances			4.47			1.75			2.72			2,702,287			10,320,483			(7,618,196	)		60,691			91,405			(30,715	)
Other borrowings			7.58			7.39			0.19			17,767,749			17,985,809			(218,059	)		677,325			671,449			5,876
Total borrowed funds			7.17			5.33			1.84			20,470,036			28,306,291			(7,836,255	)		738,016			762,855			(24,839	)
Total interest-bearing liabilities			0.60			0.90			(0.30	)		777,387,908			558,427,293			218,960,615			2,332,094			2,518,491			(186,396	)
Net interest rate spread			2.63			3.89			(1.26	)											17,307,005			17,299,880			7,126
Effect of non-interest bearing deposits			(0.22	)		(0.31	)		0.09			457,268,935			293,705,413			163,563,523
Cost of funds			0.38			0.59			(0.21	)
Net interest margin			2.85			4.20			(1.35	)

SUPPLEMENTAL FINANCIAL INFORMATION
Financial Ratios
	For the Qtr Ended June 30, 2021				For the Qtr Ended March 31, 2021				For the Qtr Ended June 30, 2020				For the Six Months Ended June 30,2021			For the Six Months Ended June 30, 2020
Performance Ratios
Return on Average Assets (ROA)		0.76	%			0.60	%			0.66	%			0.68	%			0.68	%
ROA based on Pre-tax, pre-provision operating income		0.95	%			0.88	%			1.14	%			0.92	%			1.13	%
Return on Average Equity (ROE)		11.11	%			7.97	%			7.12	%			9.51	%			6.98	%
ROE based on Pre-tax, pre-provision operating income		13.80	%			11.84	%			12.29	%			12.80	%			11.64	%
Earnings per Share***	$	1.51			$	1.12			$	0.96			$	2.63			$	1.87
Net Interest Margin		2.85	%			2.86	%			4.05	%			2.85	%			4.20	%
Efficiency Ratio **		72.03	%			72.86	%			73.02	%			72.43	%			74.34	%
Non-Interest Income as a % of Avg. Assets**		0.94	%			0.83	%			0.94	%			0.88	%			0.99	%
Non-Interest Expense as a % of Avg. Assets**		2.61	%			2.55	%			3.28	%			2.58	%			3.53	%

					As of
		As of June 30,			December 31,
		2021			2020
Capital
Tier 1 Leverage Ratio		6.71%	(est.)			7.44	%
Common Equity Tier 1 Ratio		12.41%	(est.)			13.12	%
Tier 1 Risk-Based Capital Ratio		12.41%	(est.)			13.12	%
Total Risk-Based Capital Ratio		13.55%	(est.)			14.37	%
Tangible Equity / Total Assets		7.01%				7.34	%
Tangible Book Value per Share***		$ 55.76				$ 55.12

Reconcilement of GAAP to Pre-tax, Pre-Provision Operating Income:
		For the Qtr Ended June 30, 2021				For the Qtr Ended March 31, 2021				For the Qtr Ended June 30, 2020				For the Six Months Ended June 30, 2021				For the Six Months Ended June 30, 2020
Net Income (GAAP)		$	2,593,570			$	1,919,989			$	1,648,997			$	4,513,549			$	3,206,711
Provision for Loan Losses			165,000				165,000				897,000				330,000				1,580,000
Net (Gain) Loss on OREO			(1,454	)			408,360				40,669				406,906				65,809
Less: Net Gain on Securities			(4,508	)			(2,173	)			-				(6,682	)			-
Income Tax Expense			470,107				361,730				260,977				831,836				497,372
Pre-tax, Pre-Provision Operating Income		$	3,222,715			$	2,852,906			$	2,847,643			$	6,075,609			$	5,349,892
** Non-recurring items are eliminated for this ratio *** Prior period shares outstanding adjusted for 10% stock dividend

SOURCE: JD Bancshares, Inc.

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https://www.accesswire.com/656853/JD-Bancshares-Inc-Reports-Improved-Financial-Results-for-Q2-2021

FAQ

What were the Q2 2021 earnings results for JD Bancshares (JDVB)?

In Q2 2021, JD Bancshares reported a net income of $2,593,570, or $1.51 per share.

How did JD Bancshares perform in the first half of 2021?

For the first half of 2021, net income was $4,513,549, a 41% increase compared to the prior year.

What is the current loan growth status for JD Bancshares (JDVB)?

JD Bancshares experienced a net growth of $25 million in non-PPP loans during Q2 2021.

How did total assets change for JD Bancshares by June 30, 2021?

Total assets increased by 6% to $1.4 billion as of June 30, 2021.

What are the challenges JD Bancshares faces in Q2 2021?

JD Bancshares faces challenges with a decreasing net interest margin, now at 2.85%.