JEFFERSONVILLE, N.Y., Nov. 09, 2023 (GLOBE NEWSWIRE) — Jeffersonville Bancorp, Inc. (OTCQB – JFBC) announced today third quarter net income of $1,453,000 or $0.34 per share compared to $1,296,000 or $0.30 per share for the same quarter in 2020. The increase in quarterly net income compared to 2020 of $157,000 was primarily attributable to an increase in securities and other interest and dividends of $259,000, decreases in provision for loan losses of $250,000 and in interest expense of $50,000, and increases in fee income of $142,000 and service charges of $47,000. These improvements were partially offset by a decrease in loan interest and fees of $347,000 and increases in total non-interest expense of $87,000 and in tax expense of $54,000.
Year to date net income as of September 30, 2023 was $4,502,000 or $1.06 per share compared to $3,606,000 or $0.85 per share for the same period in 2020. The increase in year-to-date net income compared to 2020 of $896,000 was attributable to a decrease in provision for loan losses of $750,000, an increase in unrealized gains on securities of $557,000, an increase in securities and other interest and dividends of $400,000, an increase in fee income of $327,000, and a decrease in interest expense of $197,000. These improvements were partially offset by a decrease in loan interest and fees of $792,000, an increase in tax expense of $297,000, and an increase in total non-interest expense of $231,000.
“Covid-19 pandemic related economic stimulus, combined with the inability of consumers to increase spending due to continuing disease outbreaks and supply chain bottlenecks, has led to an industry wide increase in deposits. Due to the excess cash that has resulted from the rise in deposits, competition for earning assets such as loans and securities has driven down both volume and rates in an already historic low-rate environment, pressuring net interest margins at most financial institutions. On the positive side, the increase in loan losses anticipated by shutdowns and loss of business revenue have not materialized to date. We continue to be optimistic that our focus on our core business, strong capital position, and high levels of liquidity will enable 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 November 9, 2023 meeting of the Board of Directors. The dividend is payable on December 3, 2023 to stockholders of record at the close of business on November 23, 2023.
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.
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