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

*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.
View source version on accesswire.com:
https://www.accesswire.com/656853/JD-Bancshares-Inc-Reports-Improved-Financial-Results-for-Q2-2021