Jefferson Security Bank Reports Fifth Consecutive Year of Record Earnings - Seite 2

Balance Sheet

As of December 31, 2022, total assets increased $34.5 million, or 8.07%, to $461.2 million compared to total assets of $426.8 million as of December 31, 2021. Loans, net of the allowance for loan losses, increased $59.4 million or 24.28% to $304.2 million as of December 31, 2022, compared to $244.8 million as of December 31, 2021. Deposits totaled $414.8 million at December 31, 2022, representing an increase of $24.1 million or 6.16%, when compared to $390.7 million at December 31, 2021. As of December 31, 2022, book value per share declined to $81.64 per share compared to $119.52 per share at December 31, 2021. The reasons for this decline are set forth under the Capital section below.

Asset Quality

The Bank’s asset quality was strong at December 31, 2022 with noncurrent assets totaling $55 thousand, or 0.01% of total assets. This represents a decline from noncurrent assets totaling $892 thousand, or 0.21% of total assets at December 31, 2021. Nonaccrual loans totaled $55 thousand and $618 thousand at December 31, 2022 and 2021, respectively. Past due loans still accruing interest totaled $17 thousand with no loans past due 90 days or more at December 31, 2022. This represents an improvement from $303 thousand in past due loans still accruing interest with $274 thousand in loans past due 90 days or more at December 31, 2021. The Bank had net recoveries on loans totaling $3 thousand for the year ended December 31, 2022 compared to net charge offs totaling $35 thousand for the year ended December 31, 2021.

Allowance for Loan Losses

At December 31, 2022, the allowance for loan losses was $3.5 million, or 1.12% of total loans compared to $2.8 million, or 1.14% of total loans at December 31, 2021. With improving credit quality metrics and historically low charge offs, the increase in the allowance for loan losses resulted directly from loan growth and was not related to specific credit quality concerns. The Bank closely monitors the loan portfolio with a focus on credit quality and risk management.

The Bank’s provision for loan losses was $225 thousand for the fourth quarter of 2022 and $630 thousand for the year ended December 31, 2022, compared to no provision for loan losses for the fourth quarter of 2021 and $80 thousand for the year ended December 31, 2021.

Capital

Total shareholders’ equity was $22.5 million at December 31, 2022, representing a decline from $33.0 million at December 31, 2021. This change resulted in a decline in book value per share to $81.64 per share at December 31, 2022 compared to $119.52 per share at December 31, 2021. During 2022, shareholders’ equity and book value per share declined as a result of market adjustments to the investment portfolio. The decline in equity, related to the change in net unrealized losses on the investment portfolio, totaled $14.5 million, when comparing year end 2022 to the same period in 2021. The unrealized losses recognized in shareholders’ equity will decline over time or if market interest rates decline. Management continues to closely monitor the Bank’s capital position based on growth expectations and market fluctuations.