JSB Financial Inc. Announces Full-Year and Q4 Earnings Results
JSB Financial Inc. (the “Company”) (OTC Pink: JFWV), the bank holding company of Jefferson Security Bank (the “Bank”), has reported its unaudited consolidated net income for the year ended December 31, 2024, amounting to $4.1 million. This represents a substantial increase of $1.1 million or 35.2% compared to the net income of $3.0 million recorded for the year ended December 31, 2023. Basic and diluted earnings per common share for 2024 stood at $15.94, up from $11.15 in 2023. The return on average assets (ROAA) and return on average equity (ROAE) for December 31, 2024, were 0.77% and 15.30%, respectively, marking an improvement from the prior year’s figures of 0.65% and 13.23%.
For the fourth quarter ended December 31, 2024, unaudited consolidated net income amounted to $673 thousand, which reflects a slight decline of $30 thousand, or 4.3%, when compared to $703 thousand in net income for the same quarter in 2023. Basic and diluted earnings per common share for the fourth quarter of 2024 stood at $2.62, slightly lower than $2.68 reported for the same period in 2023.
Strong Performance and Strategic Execution
President and Chief Executive Officer Cindy Kitner expressed satisfaction with the company’s overall performance in 2024, emphasizing that JSB Financial Inc. successfully executed its key initiatives throughout the year. “We are pleased with the company’s overall performance in 2024,” Kitner stated. “Throughout the year, we executed on our key initiatives by maintaining a strong liquidity JSB 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.”
Kitner also credited the company’s workforce for their dedication, which was instrumental in achieving this success. “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 JSB communities,” she said. “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, JSB Financial Inc. recorded net interest income of $14.5 million, a significant increase of $2.2 million, or 17.6%, compared to $12.3 million in 2023. A key contributor to this increase was the recognition of an interest recovery totaling $1.3 million related to a previously nonperforming loan.
Total interest income grew by $6.5 million, or 34.1%, reaching $25.5 million in 2024, compared to $19.0 million in 2023. The primary driver behind this growth was an increase in interest and fees on loans, which totaled $21.5 million as of December 31, 2024. This marks a rise of $5.7 million from the $15.8 million recorded in 2023. Excluding the one-time interest recovery, the increase in interest and fees on loans was primarily due to higher average loan balances resulting from organic growth, as well as increased yields on loans from new loan originations and the continued repricing of adjustable-rate loan portfolios.
However, total interest expense for 2024 rose by $4.3 million, or 64.5%, to $11.0 million, compared to $6.7 million in 2023. This increase was largely driven by higher average balances and costs associated with interest-bearing deposits, as customers migrated toward higher-yielding deposit products throughout the year.
The net interest margin for 2024 stood at 2.84%, representing a 13-basis-point increase from 2.71% in 2023. The improvement in net interest margin was primarily attributed to the one-time interest recovery, while the impact of rising funding costs was mitigated by increasing yields on interest-earning assets.
Noninterest Income and Expenses
For the year ended December 31, 2024, noninterest income amounted to $2.1 million, compared to $2.3 million in 2023. The decline was JSB primarily due to realized net losses of $214 thousand from the sale of available-for-sale securities during the fourth quarter of 2024.
Meanwhile, noninterest expenses totaled $11.5 million in 2024, compared to $10.7 million in 2023. This increase was mainly driven by higher salaries and employee benefits resulting from increased staffing levels and wage adjustments.
Fourth Quarter Performance
Comparing the fourth quarter of 2024 to the same quarter in 2023, net interest income rose by $392 thousand, or 12.6%, reaching $3.5 million, up from $3.1 million. Total interest income increased by $1.2 million, which was partially offset by a $773 thousand rise in JSB total interest expense. The growth in total interest income was primarily fueled by an $869 thousand increase in interest and fees on loans, while the increase in interest expense was largely driven by a $1.2 million increase in the cost of interest-bearing deposits. However, this was partially offset by a $414 thousand decline in interest expense on borrowings.
Noninterest income for the fourth quarter of 2024 totaled $374 thousand, compared to $596 thousand in the fourth quarter of 2023. The decline JSB was attributed to realized net losses from the sale of available-for-sale securities. Noninterest expense for the fourth quarter of 2024 amounted to $3.0 million, up from $2.7 million in the same period in 2023, with the increase primarily linked to higher salaries and employee benefits.
