September 19, 2021

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Jefferson Security Bank Reports Second Quarter 2021 Results

SHEPHERDSTOWN, W.Va .– () – Jefferson Security Bank (OTC Pink: JFWV) reported net income of $ 1.0 million for the quarter ended June 30, 2021, an increase of $ 304,000, or 43.4%, over net income of $ 701,000 for the quarter ended June corresponds to June 30, 2020. Diluted earnings per share were $ 3.65 for the second quarter of 2021 compared to $ 2.51 for the second quarter of 2020. The Net income for the six months ended June 30, 2021 was $ 1.8 million, an increase of $ 466 thousand, or 35.3. % compared to $ 1.3 million for the same period in 2020. Diluted earnings per share were $ 6.45 and $ 4.73 for the first six months of 2021 and 2020, respectively The annualized return on average assets and equity for June 30, 2021 increased to 0.90% and 11.64%, respectively, from 0.79% and 9.14%, respectively, as of June 30, 2020.

“We are pleased to announce strong second quarter results with solid revenue growth, sustained deposit and loan growth, strong asset quality and well-managed operating expenses,” said President and Chief Executive Officer, Cindy Kitner. “Our second quarter results were positively impacted by recognition of Paycheck Protection Program (PPP) fees and lower expenses related to deposit interest and loan loss provisions. In addition, our team performed solidly in the second quarter, helping us execute our strategic plan, and meeting the needs of our customers and communities. ”

Total assets as of June 30, 2021, increased $ 64.0 million, or 18.3%, to $ 414.3 million compared to total assets of $ 350.3 million as of June 30, 2020. Loans, net of Loan loss provisioning increased $ 20.2 million to $ 249.3 million as of June 30, 2021, compared to $ 229.1 million as of June 30, 2020. As of June 30, 2021, loan growth was excluding PPP – Loans $ 18.1 million compared to June 30, 2020. Deposits were $ 379.3 million as of June 30, 2021, an increase of $ 63.4 million, or 20.1 % compared to $ 315.9 million as of June 30, 2020. As of December 31, 2020, total assets have increased by $ 33.6 million; Loans, net of loan loss provisions, increased $ 9.5 million; excluding PPP loans, loan growth was $ 6.7 million and total deposits increased $ 32.9 million. As of June 30, 2021, book value per share improved to $ 114.04 per share compared to $ 111.02 per share on December 31, 2020 and $ 106.79 per share on June 30, 2020.

As of June 30, 2021, the increase in total assets was mainly due to significant deposit growth due to government incentives and an improved liquidity position of customers. This deposit trend funded a modest growth in the loan portfolio and contributed 43.8 million to the purchase of investment securities June 30, 2021, compared with 8.68% as of December 31, 2020 and 9.21% as of June 30, 2020.

“Through our strategic planning efforts, we are actively managing our capital with the aim of positioning the bank to generate long-term, sustainable growth over time, continue our momentum and create value for our shareholders, customers and communities,” said President and Managing Director Cindy Kitner.

Loan loss allowance as of June 30, 2021 was $ 2.8 million, or 1.12% of total loans, compared to $ 2.8 million, or 1.15%, as of December 31, 2020 and $ 2.3 million or 1.01% as of June 30, 2020. Excluding PPP loans that are fully guaranteed by the state, the risk provisioning was 1.20%, 1.22% and 1.09% of the total loans as of June 30, 2021, 31 December 2020 and June 30, 2020, respectively. In the first six months of 2021, the provision for loan losses totaled $ 80,000 compared to $ 325,000 for the same period in 2020, mainly driven by stable credit trends and improving local credit economic conditions compared to the uncertainty of the 2020 pandemic outbreak Asset quality metrics have improved as long-term borrowing of total loans declined to 1.05% as of June 30, 2021, compared to 1.31% as of December 31, 2020 and 1.61% as of June 30, 2020. Long-term loans totaled $ 2.7 million with one borrower relationship having total loans outstanding of $ 2.4 million, or 0.93% of total loans. This relationship is continuously monitored.

About Jefferson Security Bank

Jefferson Security Bank is an independent community bank that evolves with the needs of its customers and the communities it serves. Jefferson Security Bank serves individuals, businesses and community organizations and is committed to supporting entrepreneurial endeavors in their target markets. Delivering long-term value to shareholders is at the core of our corporate culture. Jefferson Security Bank is a bank chartered by the State of West Virginia that was incorporated and opened on May 19, 1869, making it the oldest bank in Jefferson County, West Virginia. The bank provides general banking services in Berkeley Counties and Jefferson Counties, West Virginia, and Washington Counties, Maryland. visit www.JSB.bank for more informations

This press release may contain forward-looking statements within the meaning of US securities laws that involve significant risks and uncertainties. The statements are based on estimates and assumptions made by management in conjunction with other factors that are believed to be reasonable under the given circumstances. Actual results could differ materially from current forecasts.

Offices:

105 East Washington Street, Shepherdstown, WV (304-876-9000)

7994 Martinsburg Hecht, Shepherdstown, WV (304-876-2800)

873 East Washington Street, Suite 100, Charles Town, WV (304-725-9752)

277 Mineral Drive, Suite 1, Inwood, WV (304-229-6000)

1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900)

103 West Main Street, Sharpsburg, MD (301-432-3900)