JD Bancshares, Inc. Reports Financial Results for Quarter Ended March 31, 2026

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JENNINGS, LA / ACCESS Newswire / April 23, 2026 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the quarter ended March 31, 2026.

Net income for the three-month period ended March 31, 2026 is $2,966,937 or $0.87 per share compared to a net income of $3,330,945 or $0.97 for the linked quarter ended December 31, 2025 and $2,925,651 or $0.85 per share for the prior year quarter ended March 31, 2025. Pre-tax, pre-provision operating income (PTPPOI) for the current quarter is $4,245,847 compared to $4,480,598 for the linked quarter and $3,612,441 for the prior year quarter. PTPPOI excludes taxes, credit loss provisions, net losses on the sale of other real estate owned (OREO), and net losses on the disposal of available for sale investment securities. The decrease in PTPPOI for the current quarter compared to the linked quarter is primarily due to a 5.10% increase in non-interest expense and a 4.0% decrease in non-interest income. Compared to the prior year quarter, the increase is due primarily to higher net interest income and non-interest income, partially offset by higher non-interest expenses.

Paul E. Brummett, II, CEO, commented, "We are pleased with the first quarter results. While loan and deposits remained relatively flat, the net interest margin improved, and net interest income increased for the quarter. We are excited about our momentum and look forward to the opportunities for the remainder of 2026. We remain eager and well positioned to serve our customers and communities."

Asset Quality

Loans past due 30 to 89 days at March 31, 2026 are $2.0 million or 0.26% of the total loans outstanding compared to $1.8 million or 0.23% of total loans reported at December 31, 2025. Total nonperforming assets, including loans in non-accrual status, OREO and repossessed assets are $5.8 million at March 31, 2026, a decrease of $1.0 million from $6.8 million at December 31, 2025. Loans on non-accrual status decreased by $604,000 to $3.3 million from $3.9 million at December 31, 2025. OREO decreased by $507,000 to $2.4 million from $3.0 million at December 31, 2025. Management performs a quarterly evaluation of OREO properties and believes their adjusted carrying values are representative of their fair market values, although there is no assurance that the ultimate sales will be equal to or greater than the carrying values.

The Company recorded a provision of $326,000 to its Allowance for Credit Losses (ACL) in the current quarter compared to $116,000 in the linked quarter and $35,000 in the prior year quarter. The ACL is $9.1 million at March 31, 2026 and $8.9 million at December 31, 2025 which represents 1.19% of total loans and 1.15% of total loans, respectively. We recognized net charge-offs in the current quarter of $5,000 compared to $405,000 for the linked quarter and $26,000 for the prior year quarter. We believe the current level of our ACL is adequate; however, there is no assurance that regulators, increased risks in the loan portfolio or changes in economic conditions will not require future adjustments to the ACL.

Net Interest Income

Net interest income for the current quarter is $11.9 million, reflecting an increase of $104,000 compared to $11.8 million for the linked quarter. The current quarter reflects an increase of $1.1 million over the $10.8 million reported for the prior year quarter ended March 31, 2025. While interest income declined compared to the linked quarter, interest expense decreased by a larger amount for the same period. Interest income increased compared to the prior year period, with a slight decrease in interest expense.

Interest income on loans for the current quarter is $12.9 million, reflecting a decrease of $162,000 compared to $13.0 million for the linked quarter and increasing by $1.1 million compared to $11.7 million for the prior year quarter. Average loans outstanding in the current quarter are $772.3 million compared to $768.1 million for Q4 2025 and $725.4 million for the prior year quarter. The yield on loans increased to 6.76% in the current quarter from 6.74% for the linked quarter and 6.56% for the prior year quarter. The decrease in loan interest income from the linked quarter is primarily due to two fewer days in the current quarter. The year-over-year increase in interest income on loans is due to a combination of increased volume and higher rates. Lower rates earned on deposits with banks and investment securities partially offset the higher yield on loans and contributed to the average yield of earning assets for the current and linked quarters of 5.34% compared to 5.13% for Q1 2025.

Total interest expense is $3.5 million for the current quarter, $3.7 million for the linked quarter and $3.5 million for the prior year quarter. The decrease in interest expense in the current quarter is due to lower rates on interest-bearing liabilities and fewer days in the quarter compared to the linked quarter. The cost of interest-bearing liabilities is 1.59% for the current quarter compared to 1.65% for the linked quarter and 1.63% for the prior year quarter. The cost of funds, which includes the impact of non-interest-bearing deposits, is 1.25% for the current quarter compared to 1.30% for Q4 2025 and 1.29% for Q1 2025.

The decrease in cost of funds in the current quarter led to a 5-basis point increase in net interest margin, from 4.09% in the prior quarter to 4.14% in the current quarter. The current quarter's margin is 25 basis points higher than the 3.89% margin reported in the prior year quarter. The increase is attributed to a 20 basis point increase in yield on earning assets combined with a 4 basis point decrease in cost of funds. We anticipate being able to maintain our net interest margin while continuing to move earnings assets from lower yielding assets into the loan portfolio and monitoring the cost of funds.

Non-Interest Income

Total non-interest income is $2.9 million for the quarter ended March 31, 2026 compared to $3.0 million for the linked quarter and $2.6 million for the prior year quarter. Service charges and fees associated with deposit accounts are consistent over the current and linked quarters at $2.1 million and were $2.0 million for the prior year quarter. The increase in service charges and fee income for the current quarter compared to the prior year quarter is primarily due to increased revenue associated with debit card transactions.

Mortgage loan originations are up $11,000 from Q4 2025 and $53,000 from the prior year quarter. The demand for housing remains strong in many of our markets; activity has slightly increased with some reduction in mortgage rates. Gains on the sale of newly originated mortgage loans are $139,000 for the most recent quarter, $127,000 for Q4 2025 and $86,000 for Q1 2025.

Other non-interest income is $648,000 for the current quarter and $716,000 for the linked quarter and $526,000 for the quarter ended March 31, 2025. The current quarter includes non-recurring losses on securities sold of $251,000. The largest components of other non-interest income are from trust and brokerage services. Those two revenue sources totaled $423,000, $380,000, and $294,000, respectively, for the three comparative periods.

Non-Interest Expense

Total non-interest expense is $10.9 million in Q1 2026 compared to $10.3 million for the linked quarter and $9.9 million for the prior year quarter. Salaries and benefits expense is the largest component of non-interest expense and is $6.0 million for the current quarter, $5.6 million for the linked quarter and $5.5 million for the prior year quarter. Salaries and benefits expense in Q1 2026 increased by $399,000 compared to Q4 2025 due to higher incentive accrual, benefits expense, and payroll taxes. The increase over the prior year quarter is primarily due to higher salary and benefits expenses. We do anticipate salary expense to increase moving forward as we continue to focus on employee retention and pay equity.

Occupancy expense is relatively flat for the current and prior year quarters at $1.5 million and $1.4 million for the linked quarter. Data processing expense increased $68,000 in the current quarter to $1.4 million from $1.3 million for the linked quarter, and $230,000 from $1.1 million in the prior year quarter. Advertising and public relations expense is $396,000 for the current quarter, $350,000 in the linked quarter and $364,000 a year ago.

All other non-interest expense is $1.7 million for the current quarter, $1.8 million for the linked quarter, and $1.5 million for the prior year quarter. The largest components of non-interest expense are comprised of professional fees, ad valorem taxes, FDIC deposit insurance assessments, telecommunications and corporate insurance. All three comparative quarters included non-recurring, non-operating expenses of $108,000, $51,000 and $97,000, respectively, related to losses on the sale of OREO.

Income tax expense is $593,000 for the current quarter, $983,000 for the linked quarter and $554,000 for the prior year quarter. Effective tax rates are 16.67% for the current quarter, 22.78% for the linked quarter, and 15.93% for the prior year quarter.

Balance Sheet

Total assets increased by $479,000 during the first three months of the year and are $1.3 billion on both March 31, 2026 and December 31, 2025. Cash on hand and deposits with correspondent banks increased $7.7 million while investment securities declined $8.4 million. Total gross loans outstanding decreased by $32,000 during the first three months of 2026 and the ACL increased by $250,000. All other assets increased $1.5 million between December 31, 2025 and March 31, 2026, primarily due to increased premises and equipment and higher prepaid expenses.

Total deposits decreased $92,000 during the first quarter of 2026 totaling $1.1 billion at March 31, 2026 and December 31, 2025. Between December 31, 2025 and March 31, 2026, the various deposit categories that experienced increases were: non-interest bearing deposits by $6.0 million, savings and money market accounts by $13.1 million and time deposits by $9.8 million. Interest bearing demand deposits saw a decline of $29.1 million during the same period.

Other liabilities decreased $89,000 during the first three months of 2026. The decrease is attributed to a reduction in accrued liabilities.

Stockholders' equity increased $660,000 to $103.8 million at March 31, 2026 from $103.1 million at December 31, 2025. The increase is due to net income of $3.0 million, and the issuance of restricted share awards valued at $355,000. This increase is partially offset by the payment of $1.0 million in dividends to shareholders and an increase in accumulated other comprehensive losses of $1.4 million. Tangible book value per common share increased to $28.99 at March 31, 2026 compared to $28.88 at December 31, 2025.

Key Performance Ratios

Return on average assets (ROA) in the current quarter is 0.97% compared to 1.08% and 1.00% for the linked and prior year quarters, respectively. The decrease in ROA between Q1 2026 and the two comparative 2025 quarters is primarily due to an increase in non-interest expense. ROA on a non- Generally Accepted Accounting Principles (GAAP) pre-tax, pre-provision operating basis for the three comparative periods is 1.38%, 1.45% and 1.23%, respectively. Return on average equity (ROE) is 11.52% for the current quarter, 13.32% for the linked quarter and 14.17% for the prior year quarter. On a non-GAAP, pre-tax, pre-provision operating basis, the ROE for the three comparative periods is 16.49%, 17.92% and 17.49%, respectively.

About JD Bancshares, Inc.

JD Bancshares, Inc. is the bank holding company of JD Bank, a state-chartered bank headquartered in Jennings, Louisiana. JD Bank has been serving the citizens of south Louisiana since 1947 and offers a variety of personal and commercial lending and deposit products through both physical and digital delivery channels. The Bank also offers both trust and investment services. JD Bank operates through 22 full-service branch offices and one Loan Production/Deposit Production office located along the I-10 and I-12 corridors from Lake Charles to Mandeville, Louisiana. Additional information is available on its website at jdbank.com.

JD Bancshares, Inc. (OTCQX:JDVB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on otcmarkets.com.

Forward-Looking Statements

Statements contained in this release, which are not historical facts, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, the effects of competition, and including without limitation to other factors that could cause actual results to differ materially as discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

(OTCQX:JDVB)

Paul Brummett (CEO) (337-246-5395)

Jared Doucet (CFO) (337-246-5409)

www.jdbank.com

JD BANCSHARES, INC. AND SUBSIDIARIES

JENNINGS, LOUISIANA

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(UNAUDITED)

JD BANCSHARES, INC. AND SUBSIDIARIES

JENNINGS, LOUISIANA

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(UNAUDITED)

JD BANCSHARES, INC. AND SUBSIDIARIES

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JD BANCSHARES, INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

Financial Ratios

SOURCE: JD Bancshares, Inc.