Jeffersonville Bancorp Announces Fourth Quarter Earnings of $1,204,000 and Year to Date Earnings of $4,810,000; Declares Dividend of $0.15
JEFFERSONVILLE, N.Y., Feb. 09, 2021 (GLOBE NEWSWIRE) -- Jeffersonville Bancorp, Inc. (OTCQB - JFBC) announced today fourth quarter net income of $1,204,000 or $0.28 per share compared to $1,045,000 or $0.25 per share for the same quarter in 2019. The increase in quarterly net income was primarily due to decreases in provision for loan losses of $250,000, tax expense of $151,000, total non-interest expenses of $75,000 and interest expense of $49,000 and increases in securities income of $215,000 and total non-interest income of $98,000. These improvements were partially offset by decreases in interest on loans of $441,000 and other interest and dividend income of $238,000.
For the year ended December 31, 2020, net income was $4,810,000 or $1.14 per share compared to $6,506,000 or $1.54 per share in 2019. The decrease in year to date net income was primarily due to decreases in interest on loans of $1,706,000, other interest and dividend income of $1,084,000, and total non-interest income of $332,000. These items were partially offset by a decrease in income taxes of $675,000, an increase in securities income of $594,000, a decrease in interest expense of $111,000, and a decrease in total non-interest expense of $46,000.
"Due to the ongoing global pandemic, the Federal Reserve early in the year cut the federal funds rate to near zero and recently indicated they expect it to remain there for several years. This extreme low interest rate environment has caused loans and investment securities to re-price lower, causing net interest margins to shrink. At the same time, the government has injected unprecedented levels of stimulus into the economy, causing deposits to swell. Virtually every financial institution is navigating these challenging conditions with uncertainty as to the future course of the pandemic and its impact on economic conditions," said George W. Kinne, Jr., President and CEO, “We were fortunate that our historically conservative approach to operations positioned us to face the current challenges with a strong capital position and a high level of profitability and liquidity. We intend to maintain our focus on our core business and conservatively balance the trade-off between current income and future risks. We believe this approach will allow us to continue to add to our already strong capital base for the long term.”
At its February 9, 2021 meeting, the Board of Directors declared a quarterly cash dividend in the amount of fifteen cents ($0.15) per share on the common stock of the company. The dividend is payable on March 2, 2021 to stockholders of record at the close of business on February 23, 2021.
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.
For More Information, call: 845-482-4000
Contact: George W. Kinne, Jr., President – CEO
