Jeffersonville Bancorp Announces First Quarter Earnings of $1,314,000 or $0.31 per share; Declares Dividend of $0.15

Rhea-AI Summary

Jeffersonville Bancorp, Inc. (OTCQB - JFBC) reported a first quarter net income of $1,314,000 or $0.31 per share, up from $1,046,000 or $0.25 per share in the same quarter of 2020. The $268,000 increase was mainly due to a $250,000 decrease in the provision for loan losses, $235,000 unrealized gain on equity securities, and a $71,000 decrease in interest expense, offset by a $536,000 decrease in loan interest and a $71,000 increase in tax expense. A cash dividend of $0.15 per share was declared, payable June 2, 2021.

Positive

• Net income increased by $268,000 compared to Q1 2020.
• Decreased provision for loan losses by $250,000.
• Declared cash dividend of $0.15 per share.

Negative

• Loan interest and fees decreased by $536,000.
• Tax expense increased by $71,000.
• Interest income pressured by low interest rate environment.

JEFFERSONVILLE, N.Y., May 11, 2021 (GLOBE NEWSWIRE) -- Jeffersonville Bancorp, Inc. (OTCQB - JFBC) announced today first quarter net income of $1,314,000 or $0.31 per share compared to $1,046,000 or $0.25 per share for the same quarter in 2020. The increase in quarterly net income compared to 2020 of $268,000 was primarily attributable to a decrease in the provision for loan losses of $250,000, an unrealized gain on equity securities of $235,000, and a decrease in interest expense on deposits of $71,000, partially offset by a decrease in loan interest and fees of $536,000 and an increase in tax expense of $71,000.

"Interest income continues to be pressured by Federal Reserve Bank policies that have created an extreme low interest rate environment. In addition, loan demand continues to be muted as the economy slowly reopens. We expect that conditions will improve as the massive amounts of government stimulus and higher levels of vaccinations allow the economy to reopen more fully, and consumers have the opportunity to increase spending and hasten economic recovery,” said George W. Kinne, Jr., President and CEO.

A cash dividend in the amount of fifteen cents ($0.15) per share on the common stock of the company was declared at the May 11, 2021 meeting of the Board of Directors. The dividend is payable on June 2, 2021 to stockholders of record at the close of business on May 24, 2021.

Jeffersonville Bancorp is a one-bank holding company, which owns all the capital stock of Jeff Bank. Jeff Bank maintains twelve full service branches in Sullivan and Orange County, New York located in Anawana Lake Road/Monticello, Eldred, Callicoon, Jeffersonville, Liberty, Livingston Manor, Loch Sheldrake, Monticello, Narrowsburg, Port Jervis, White Lake, and Wurtsboro.

For More Information, call: 845-482-4000

Contact: George W. Kinne, Jr., President – CEO

FAQ

What were Jeffersonville Bancorp's earnings for Q1 2021?

Jeffersonville Bancorp reported a net income of $1,314,000 or $0.31 per share for Q1 2021.

How much is the dividend declared by Jeffersonville Bancorp?

The board declared a cash dividend of $0.15 per share.

What factors contributed to the increase in net income for JFBC?

The increase in net income was primarily due to a decrease in provision for loan losses, an unrealized gain on equity securities, and a decrease in interest expense.

When will the dividend for JFBC be paid?

The dividend is payable on June 2, 2021, to stockholders of record by May 24, 2021.

What challenges is Jeffersonville Bancorp facing?

Jeffersonville Bancorp is facing challenges from low interest rates and muted loan demand due to the ongoing economic conditions.