Jefferson Security Bank Reports Fifth Consecutive Year of Record Earnings

Jefferson Security Bank (OTCPK: JFWV) reported unaudited financial results for the fourth quarter and year ended December 31, 2022. Net income for the fourth quarter of 2022 was $1.3 million, representing an increase of $415 thousand, or 44.82%, when compared to net income of $926 thousand for the quarter ended December 31, 2021. Basic and diluted earnings per common share was $4.86 for the fourth quarter of 2022, compared to $3.36 for the same period in 2021.

Net income for the year ended December 31, 2022 totaled $3.9 million, representing an increase of $286 thousand or 8.01% when compared to $3.6 million for the year ended December 31, 2021. Basic and diluted earnings per common share was $14.01 and $12.93 for the year ended December 31, 2022 and 2021, respectively. Return on average assets and return on average equity for December 31, 2022 was 0.87% and 16.37%, respectively, compared to 0.87% and 11.43%, respectively, for December 31, 2021.

“We are pleased to report record earnings for the fifth consecutive year,” said President and Chief Executive Officer, Cindy Kitner. “Throughout the year, we experienced organic growth, including record loan originations, while asset quality remained strong with loss rates at historically low levels. Our net interest margin has improved throughout the year and expense management remains a focus. As we navigate an uncertain environment in the short term, our focus on our long term goals and our core values drives our strategic initiatives. I am extremely proud of our team and their commitment to exceptional customer service.”

Net Interest Income

For the fourth quarter of 2022, net interest income totaled $3.8 million, representing an increase of $995 thousand, or 35.52%, from $2.8 million for the fourth quarter of 2021. For the year ended December 31, 2022, net interest income totaled $13.0 million, representing an increase of $1.7 million, or 14.91%, from $11.3 million for the year ended December 31, 2021. The increase in net interest income was driven by significant loan growth, higher yields on earning assets and an interest recovery from one customer relationship, which were in part offset by higher interest expense as interest bearing deposit balances increased and repriced due to the continued rise in market interest rates and increasing competition. For the year ended December 31, 2022, the net interest margin was 3.08%, representing an increase of 21 basis points when compared to 2.87% for the year ended December 31, 2021.