JSB Financial Inc. (the “Company”) (OTCPK: JFWV), parent of Jefferson Security Bank (the “Bank”), has reported unaudited consolidated net income of $3.0 million for the year ended December 31, 2023, representing a decrease of $826 thousand or 21.38% compared to $3.9 million for the same period in 2022. Basic and diluted earnings per common share were $11.15 and $14.01 for the year ended December 31, 2023, respectively, compared to $14.01 for the year ended December 31, 2022. Return on average assets and return on average equity for December 31, 2023 were 0.65% and 13.28%, respectively, down from 0.87% and 16.37%, respectively, for December 31, 2022.
For the fourth quarter ended December 31, 2023, unaudited consolidated net income was $704 thousand, reflecting a decrease of $637 thousand or 47.52% compared to net income of $1.3 million for the fourth quarter of 2022. Basic and diluted earnings per common share were $2.68 for the fourth quarter of 2023, compared to $4.86 for the same period in 2022.
President and Chief Executive Officer Cindy Kitner stated, “We are pleased with our overall performance in 2023. Despite industry challenges, including bank failures and economic uncertainty, we maintained liquidity, grew loans organically by 14%, increased total deposits by 3%, and stabilized our net interest margin. Ending the year with strong credit quality metrics, we will continue prioritizing sound underwriting and credit risk management. Looking ahead, our focus on key strategies like enhancing technologies and building relationships will create value for customers, communities, and shareholders.”
Net interest income for the year ended December 31, 2023, totaled $12.3 million, a decrease of $655 thousand or 5.05% from $13.0 million for the same period in 2022. Total interest income increased $3.8 million, or 24.64%, to $19.0 million for the year ended 2023, primarily due to organic loan growth and higher loan yields, offset by a $4.5 million increase in total interest expense. The net interest margin was 2.71% for the year ended December 31, 2023, down from 3.08% for the year ended December 31, 2022, mainly due to higher costs on interest-bearing deposits.
As of December 31, 2023, total assets increased to $500.6 million from $461.2 million as of December 31, 2022. Loans, net of the allowance for credit losses, increased to $347.9 million from $304.2 million, while deposits increased to $426.1 million from $414.8 million during the same period.
Asset quality remained strong, with one nonaccrual loan totaling $51 thousand at December 31, 2023, compared to $55 thousand at December 31, 2022. The Bank had net charge-offs totaling $2 thousand for the year ended December 31, 2023, compared to net recoveries totaling $3 thousand for the year ended December 31, 2022.
Total shareholders’ equity increased to $25.0 million at December 31, 2023, from $22.5 million at December 31, 2022, with regulatory capital ratios reflecting a well-capitalized position. The Bank’s Tier 1 leverage, Tier 1 capital, common equity Tier 1 capital, and risk-based capital ratios were 7.65%, 12.40%, 12.40%, and 13.65%, respectively, at December 31, 2023.
In the fourth quarter of 2023, net income increased to $704 thousand from $643 thousand in the third quarter of 2023. Total assets increased $2.2 million, loans grew by $5.9 million, and total deposits decreased by $15.1 million when comparing December 31, 2023, to September 30, 2023
