SHEPHERDSTOWN, W.Va.--(BUSINESS WIRE)-- JSB Financial Inc. (the Company) (OTC Pink: JFWV), the bank holding company of Jefferson Security Bank (the Bank), reported unaudited consolidated net income for the year ended December 31, 2024, of $4.1 million, representing an increase of $1.1 million or 35.2% when compared to $3.0 million for the year ended December 31, 2023. Basic and diluted earnings per common share were $15.94 and $11.15 for the years ended December 31, 2024 and 2023, respectively. Return on average assets and return on average equity for December 31, 2024, were 0.77% and 15.30%, respectively, compared to 0.65% and 13.23%, respectively, for December 31, 2023.

For the fourth quarter ended December 31, 2024, unaudited consolidated net income was $673 thousand, representing a decline of $30 thousand, or 4.3%, when compared to net income of $703 thousand for the fourth quarter of 2023. Basic and diluted earnings per common share were $2.62 for the fourth quarter of 2024, compared to $2.68 for the fourth quarter of 2023.

“We are pleased with the company’s overall performance in 2024,” said President and Chief Executive Officer, Cindy Kitner. “Throughout the year, we executed on our key initiatives by maintaining a strong liquidity position, organically growing loans, increasing core deposits and improving our net interest margin. We also improved our efficiency across the company, resulting in value creation for our shareholders. I am proud of our team, who contributed greatly to this success through their dedicated efforts and consistent delivery of exceptional service to customers throughout our communities. We look forward to building on the momentum we generated in 2024, as we continue to pursue enhanced returns and deepen customer relationships in the year ahead.”

Income Statement Highlights

For the year ended December 31, 2024, net interest income totaled $14.5 million, representing an increase of $2.2 million, or 17.6%, from $12.3 million for the year ended December 31, 2023. The results for the year ended December 31, 2024 include the recognition of an interest recovery totaling $1.3 million for a prior nonperforming loan.

Total interest income increased $6.5 million, or 34.1%, to $25.5 million for the year ended 2024, compared to $19.0 million for the year ended 2023. The increase in total interest income was attributed to higher interest and fees on loans which totaled $21.5 million as of December 31, 2024, representing an increase of $5.7 million, when compared to $15.8 million for the year ended December 31, 2023. Excluding the impact of the interest recovery previously noted, the increase in interest and fees on loans was primarily due to higher average loans balances from organic growth and increased yields on loans resulting from new loan originations and continued repricing of the adjustable rate loan portfolio.

For the year ended December 31, 2024, total interest expense increased $4.3 million, or 64.5%, to $11.0 million, when compared to $6.7 million for the year ended December 31, 2023. This change resulted from higher average balances and costs related to interest bearing deposits as customers continued to migrate into higher yielding deposit products during 2024.

For the year ended December 31, 2024, the net interest margin was 2.84%, representing an increase of 13 basis points when compared to 2.71% for the year ended December 31, 2023. The improvement in the net interest margin was primarily related to the one-time interest recovery, while rising cost of funds were offset in part by increasing yields on interest earning assets.

Noninterest income totaled $2.1 million for the year ended December 31, 2024, compared to $2.3 million for the same period in 2023. This decline was primarily the result of realized net losses on the sale of available for sale securities of $214 thousand, which were sold during the fourth quarter of 2024.

Noninterest expense totaled $11.5 million for the year ended December 31, 2024, compared to $10.7 million for the same period in 2023. The increase in noninterest expense was primarily related to salaries and employee benefits from increased staffing levels and wages.

When comparing the fourth quarter of 2024 to the fourth quarter of 2023, net interest income increased $392 thousand, or 12.6%, to $3.5 million from $3.1 million. Total interest income increased $1.2 million and was partially offset by an increase in total interest expense of $773 thousand. The increase in total interest income was attributed primarily to an increase in interest and fees on loans of $869 thousand, while the increase in interest expense was attributed to an increase in the cost of interest bearing deposits of $1.2 million, which were offset in part by a decline of $414 thousand in interest expense on borrowings.

Noninterest income totaled $374 thousand for the fourth quarter of 2024, compared to $596 thousand for the same period in 2023. This decline was attributed to the realized net losses on the sale of available for sale securities. Noninterest expense totaled $3.0 million for the fourth quarter of 2024, compared to $2.7 million for the same period in 2023. This increase was primarily related to salaries and employee benefits.

Balance Sheet Highlights

As of December 31, 2024, total assets increased $36.3 million, or 7.2%, to $536.9 million, compared to total assets of $500.6 million as of December 31, 2023.

Loans, net of the allowance for credit losses, increased $30.3 million, or 8.7%, to $378.2 million as of December 31, 2024, compared to $347.9 million as of December 31, 2023. The growth in the loan portfolio was attributed to an increase of $17.2 million, or 6.4%, in loans secured by residential real estate and an increase of $12.6 million, or 17.2%, in loans secured by commercial real estate. The composition of the loan portfolio is predominately 1-4 family residential real estate loans and commercial real estate loans. The growth in 2024 shifted the mix slightly with commercial real estate loans representing 22.4% of total loans as of December 31, 2024, compared to 20.7% as of December 31, 2023.

Investment securities, excluding restricted securities, were $107.0 million as of December 31, 2024 and $118.7 million as of December 31, 2023. Investment securities decreased in 2024, primarily due to the sale of available for sale securities totaling $8.8 million, principal repayments and maturities totaling $8.9 million, offset in part by purchases totaling $5.4 million and a decrease in the investment portfolio’s unrealized losses on available for sale securities totaling $359 thousand.

Deposits totaled $494.7 million on December 31, 2024, representing an increase of $68.6 million, or 16.1%, when compared to $426.1 million on December 31, 2023. The composition of the deposits changed slightly with noninterest bearing deposit balances representing 23.9% of total deposits as of December 31, 2024, compared to 26.4% as of December 31, 2023. At December 31, 2024, noninterest bearing deposit balances increased $5.5 million and interest bearing deposit balances increased $63.1 million, when compared to December 31, 2023.

Borrowings totaled $7.9 million on December 31, 2024, representing a decrease of $38.2 million, or 82.8%, when compared to borrowings of $46.1 million on December 31, 2023. During the fourth quarter of 2024, Bank Term Funding Program (BTFP) borrowings through the Federal Reserve totaling $28.0 million were paid off prior to the scheduled maturity of January 15, 2025. At December 31, 2024, total liquidity sources exceeded $288 million and included on and off-balance sheet liquidity through cash and cash equivalents, unpledged available for sale securities at fair value, Federal Home Loan Bank (FHLB) and Federal Reserve borrowing capacities, and unsecured correspondent bank lines of credit.

Shareholders’ equity totaled $30.0 million on December 31, 2024, representing an increase of $5.0 million, or 20.5%, when compared to $25.0 million on December 31, 2023. Book value per share increased to $116.68 on December 31, 2024 from $96.93 on December 31, 2023. The increase in shareholders’ equity was attributed to net income of $4.1 million and a decline in accumulated other comprehensive loss of $1.6 million. The change in accumulated other comprehensive loss was in part related to a reduction in unrealized losses on the available for sale securities portfolio of $269 thousand and a decline in unrealized holding losses on the held to maturity securities portfolio totaling $486 thousand. The company declared and paid cash dividends totaling $2.40 per share in 2024, compared to $2.30 per share in 2023.

The Bank’s regulatory capital ratios remain in excess of applicable regulatory requirements for well-capitalized institutions. The Tier 1 leverage, Tier 1 capital, common equity Tier 1 capital and risk-based capital ratios were 7.62%, 12.66%, 12.66% and 13.91%, respectively, on December 31, 2024, representing a stable trend when compared to 7.65%, 12.40%, 12.40% and 13.65%, respectively, on December 31, 2023. Management maintains regular monitoring of capital management and planning strategies to support and maintain adequate capital levels.

Asset Quality

Asset quality remains stable with historically low levels of past dues, nonaccrual and charge offs. As of December 31, 2024, there was no change in nonperforming loans with only one nonaccrual loan totaling $47 thousand, or 0.01% of total loans, compared to one nonaccrual loan totaling $51 thousand, or 0.01% of total loans, on December 31, 2023. As of December 31, 2024, total past due loans decreased to $135 thousand, from $385 thousand on December 31, 2023. There were no loans past due more than 90 days and still accruing interest at December 31, 2024 and 2023.

For the year ended December 31, 2024, the Bank recorded net recoveries of $237 thousand, compared to net charge offs of $2 thousand for the year ended December 31, 2023. Provision for credit losses on loans was $62 thousand for the fourth quarter of 2024 and $70 thousand for the year ended December 31, 2024, compared to $47 thousand for the fourth quarter of 2023 and $260 thousand for the year ended December 31, 2023.

On December 31, 2024, the allowance for credit losses on loans was $4.1 million, or 1.07% of total loans compared to $3.8 million, or 1.09% of total loans on December 31, 2023. With credit quality metrics, including net charge offs and past dues, reflecting stable trends, the increase in the allowance for credit losses was primarily attributed to loan growth. There were no specific reserves on individually evaluated loans and no change to loans considered collateral dependent.

The allowance for credit losses on unfunded commitments totaled $154 thousand on December 31, 2024, compared to $235 thousand on December 31, 2023. The Company recorded provisions for credit losses on unfunded commitments totaling $13 thousand for the fourth quarter of 2024 and released provisions for credit losses on unfunded commitments totaling $81 thousand for the year ended December 31, 2024, compared to provisions for credit losses on unfunded commitments of $123 thousand for the fourth quarter of 2023 and $32 thousand for the year ended December 31, 2023.

There was no allowance for credit losses on securities on December 31, 2024 and 2023.

About JSB Financial Inc.

JSB Financial Inc. (OTC Pink: JFWV) is the holding company for Jefferson Security Bank, an independent community bank operating six banking offices located in Berkeley County and Jefferson County, West Virginia and Washington County, Maryland. Founded in 1869, Jefferson Security Bank serves individuals, businesses, municipalities and community organizations through a comprehensive suite of banking services delivered by an exceptional team who put customers first. Jefferson Security Bank has received industry recognition by American Banker magazine five years in a row. Most recently, as a Top 100 Community Bank in 2024 and prior as a Top 200 Community Bank for four consecutive years. Operating for over 155 years, Jefferson Security Bank is the oldest, independent, locally owned and managed bank in West Virginia. Visit www.jsb.bank for more information.

This press release may contain forward-looking statements, as defined by federal securities laws, which may involve significant risks and uncertainties. The statements are based on estimates and assumptions made by management in conjunction with other factors deemed appropriate under the circumstances. Actual results could differ materially from current projections.

Offices:

105 East Washington Street, Shepherdstown, WV (304-876-9000)
7994 Martinsburg Pike, 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

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