Contact: Cindy A. Kitner
Chief Executive Officer
Jefferson Security Bank Reports First Quarter Earnings
Shepherdstown, West Virginia – Jefferson Security Bank (OTC Pink: JFWV) reported net income of $620 thousand for the quarter ended March 31, 2020, compared to net income of $628 thousand for the same period in 2019. Diluted earnings per share were $2.22 for the first quarter of 2020, compared to $2.25 for the same period in 2019. Annualized return on average assets and average equity for March 31, 2020 was 0.77% and 8.74%, respectively, compared to 0.81% and 10.44%, respectively, for March 31, 2019. With improvements in net interest income, noninterest income and well-managed noninterest expenses, the decline in net income was primarily attributed to an increase in the provision for loan losses of $160 thousand through the first quarter of 2020, compared to no provision for the same period in 2019. This change is due primarily to the economic stress and significant uncertainty of the current pandemic.
“On behalf of Jefferson Security Bank, I would like to thank our healthcare professionals and frontline workers who have responded with great care to the challenges presented by the pandemic. I also want to thank our team for remaining steadfast in their commitment and dedication to serving our customers and community during these unprecedented times. I am proud of their extraordinary efforts to maintain our long history of supporting our customers and communities through times of challenge,” said President and Chief Executive Officer, Cindy Kitner. “While uncertainty remains, we believe our conservative risk appetite and strong liquidity and capital positions will provide us with the foundation to address the challenges ahead.”
As of March 31, 2020, total assets increased $12.9 million, or 4.1%, to $327.4 million compared to total assets of $314.5 million as of March 31, 2019. Loans, net of the allowance for loan losses, increased $15.8 million, or 7.8%, to $217.1 million at March 31, 2020, compared to $201.3 million at March 31, 2019. Deposits totaled $291.7 million at March 31, 2020, representing an increase of $20.6 million, or 7.6%, compared to $271.1 million at March 31, 2019. Since December 31, 2019, total assets increased $3 million, loans, net of the allowance for loans losses, remained constant at $217 million and total deposits increased $9 million.
In response to the challenges from the Coronavirus (“COVID-19”) pandemic, the Bank implemented relief options to support our customers and communities, including participating in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) in accordance with the Coronavirus Aid, Relief and Economic Security Act enacted on March 27, 2020 (“CARES Act”). The PPP is a loan program designed to help small businesses keep their workforces employed during this crisis.
President and Chief Executive Officer Cindy Kitner added, “Through the implementation of the CARES Act and the SBA’s Paycheck Protection Program, we were able to help hundreds of small businesses and save thousands of jobs which has truly made a difference in our community. We are proud to be a community partner and remain resolute in our commitment to serve our customers and communities just as we have for over 150 years and will do so for many years to come.”
As a result of the impacts of COVID-19, the Bank implemented business continuity and resiliency plans to maintain customer access to banking services and ensure the health and safety of our customers and employees. In March, preventative health measures were implemented and remain in place today. These measures include limiting branch activities to appointment only, encouraging the use of drive-up facilities and digital banking services, following social distancing guidelines, enhancing cleaning of our facilities and transitioning employees to remote work environments, as practicable.
Jefferson Security Bank, founded in 1869, is a community bank engaged in the general banking business in Berkeley County and Jefferson County, West Virginia, and Washington County, Maryland.
This press release may contain forward-looking statements, as defined by federal securities laws, which may involve significant risks and uncertainties. The statements are based on estimates and assumptions made by management in conjunction with other factors deemed appropriate under the circumstances. Actual results could differ materially from current projections.Offices: 105 East Washington Street, Shepherdstown, WV (304-876-9000)7994 Martinsburg Pike, Shepherdstown, WV (304-876-2800)873 East Washington Street, Suite 100, Charles Town, WV (304-725-9752)277 Mineral Drive, Suite 1, Inwood, WV (304-229-6000)1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900)103 West Main Street, Sharpsburg, MD (301-432-3900)