Jeffersonville Bancorp Announces Second Quarter Earnings of $1,735,000 or $0.41 per share and Year to Date Earnings of $3,049,000 or $0.72 per share; Declares Dividend of $0.15

Rhea-AI Summary

Jeffersonville Bancorp (OTCQB - JFBC) reported strong second-quarter net income of $1,735,000 or $0.41 per share, up from $1,264,000 or $0.30 per share in 2020. The increase is driven by a rise in non-interest income and reduced loan loss provisions. Year-to-date net income reached $3,049,000 or $0.72 per share, a $739,000 increase year-over-year. A cash dividend of $0.15 per share was declared, payable on September 1, 2021. The company maintains a liquid position to capitalize on future opportunities amid uncertainty in the economic landscape.

Positive

• Second-quarter net income increased by $471,000 year-over-year.
• Year-to-date net income rose by $739,000 compared to the previous year.
• Decrease in provision for loan losses by $250,000 in Q2 and $500,000 year-to-date.
• Cash dividend of $0.15 per share declared, indicating solid financial health.

Negative

• Total interest and dividend income decreased by $304,000 year-to-date.
• Increased salaries and employee benefits expense by $129,000 compared to last year.
• Uncertainty remains regarding future loan demand despite increased deposits.

JEFFERSONVILLE, N.Y., Aug. 10, 2021 (GLOBE NEWSWIRE) -- Jeffersonville Bancorp, Inc. (OTCQB - JFBC) announced today second quarter net income of $1,735,000 or $0.41 per share compared to $1,264,000 or $0.30 per share for the same quarter in 2020. The increase in quarterly net income compared to 2020 of $471,000 was primarily attributable to an increase in total non-interest income of $266,000, a decrease in the provision for loan losses of $250,000, an increase in total interest and dividend income of $232,000, and a decrease in interest expense of $76,000, partially offset by an increase in total non-interest expense of $181,000, and an increase in income tax expense of $172,000 compared to the same period in 2020.

Year to date net income as of June 30, 2021 was $3,049,000 or $0.72 per share compared to $2,310,000 or $0.55 per share for the same period in 2020. The increase in year-to-date net income compared to 2020 of $739,000 was primarily attributable to an increase in unrealized gains on securities of $617,000, a decrease in the provision for loan losses of $500,000, a decrease in interest expense of $147,000, and an increase in fee income of $185,000, partially offset by a decrease in total interest and dividend income of $304,000, an increase in income tax expense of $243,000, and an increase in salaries and employee benefits expense of $129,000 compared to the same period in 2020.

"The Company’s performance has improved despite historically low interest rates caused by Federal Reserve policies aimed at recovering from the severe economic downturn at the start of the Covid-19 pandemic. Fee income has increased as economic activity continues to improve to more normal levels. Expected increases in loan defaults that led to higher loan loss provisions have not materialized thus far. There is still considerable uncertainty about the course of the economy and specifically, high levels of government stimulus. Industry wide, government stimulus has led to higher deposit levels at the same time loan demand has decreased. The Company has cautiously increased its investment portfolio in this low-rate environment but remains highly liquid, which will allow us to take advantage of competitive opportunities as they arise," 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 August 10, 2021 meeting of the Board of Directors. The dividend is payable on September 1, 2021 to stockholders of record at the close of business on August 23, 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 the second quarter of 2021?

Jeffersonville Bancorp reported a net income of $1,735,000 or $0.41 per share for the second quarter of 2021.

How does Jeffersonville Bancorp's year-to-date net income compare to 2020?

Year-to-date net income as of June 30, 2021, was $3,049,000 or $0.72 per share, an increase of $739,000 compared to the same period in 2020.

What dividend did Jeffersonville Bancorp declare in August 2021?

A cash dividend of $0.15 per share was declared on August 10, 2021, payable on September 1, 2021.

What factors contributed to the increase in net income for Jeffersonville Bancorp?

The increase in net income was primarily due to higher non-interest income, lower provisions for loan losses, and reduced interest expense.

What risks does Jeffersonville Bancorp face in the current economic climate?

There is uncertainty regarding future loan demand and the impact of high levels of government stimulus on the economy.