JSB Financial Inc. Reports First Quarter 2026 Results

SHEPHERDSTOWN, W. Va.--(BUSINESS WIRE)--JSB Financial Inc. (the Company) (OTCID: JFWV), the bank holding company of Jefferson Security Bank (the Bank), reported unaudited consolidated net income of $1.1 million for the quarter ended March 31, 2026, representing an increase of $408 thousand, or 56.3%, when compared to net income of $724 thousand for the quarter ended March 31, 2025. Basic and diluted earnings per share were $4.40 and $2.81 for the first quarter of 2026 and 2025, respectively.

Annualized return on average assets and average equity for the quarter ended March 31, 2026 was 0.80% and 12.47%, respectively, compared to 0.54% and 9.73%, respectively, for the quarter ended March 31, 2025.

“Our first quarter results reflect a strong start to 2026,” said President and Chief Executive Officer, Cindy Kitner. “While the economic environment continuously evolves, our team remains well positioned to support our communities and create value for our shareholders. Our performance demonstrates our commitment to prudent lending practices and building strong relationships across the communities we serve. I am proud of our team’s dedication to delivering consistent, meaningful results.”

PERFORMANCE MEASURES
	Three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2026			2025			2025			2025			2025
AT PERIOD END
(Dollars in thousands)
Assets	$	577,636		$	562,182		$	554,763		$	551,719		$	544,443
Loans, net		406,582			401,786			394,362			391,168			383,243
Deposits		535,735			518,908			513,321			502,898			502,895
Shareholders' equity		37,491			36,757			34,525			31,442			31,442
Common shares outstanding		257,483			257,483			257,483			257,483			257,483
PER SHARE DATA
Earnings	$	4.40		$	5.13		$	4.40		$	3.83		$	2.81
Book value		145.61			142.76			134.09			128.19			122.11
SELECT RATIOS
Return on average assets		0.80	%		0.76	%		0.70	%		0.63	%		0.54	%
Return on average equity		12.47	%		12.72	%		11.92	%		11.06	%		9.73	%

Income Statement Highlights

For the first quarter of 2026, net interest income totaled $4.5 million, an increase of $935 thousand, or 26.5%, from $3.5 million for the first quarter of 2025.

Total interest income increased $638 thousand, or 10.3%, to $6.8 million for the first quarter of 2026, compared to $6.2 million for the same period in 2025. This increase was attributed to higher interest and fees on loans which totaled $5.9 million, representing an increase of $634 thousand, or 12.0%, when compared to $5.3 million for the first quarter of 2025. In addition to the increase in average loans due to organic loan growth, the Company's yield on interest earning assets increased to 5.09% for the quarter ended March 31, 2026 from 4.87% for the quarter ended March 31, 2025.

Total interest expense was $2.4 million for the first quarter of 2026, representing a decrease of $297 thousand, or 11.1%, when compared to $2.7 million for the first quarter 2025. The decline in total interest expense was driven by lower costs related to interest bearing deposits and a decrease in the balance of average borrowings when comparing the first quarter of 2026 to the same period in 2025. Cost of funds decreased to 1.74% from 2.07% when comparing the quarters ended March 31, 2026 and 2025.

Net interest margin was 3.32% for the quarter ended March 31, 2026, compared to 3.19% for the quarter ended December 31, 2025 and 2.77% for the quarter ended March 31, 2025.

Noninterest income for the first quarter of 2026 totaled $584 thousand, representing an increase of $17 thousand, or 3.0%, when compared to $567 thousand for the first quarter of 2025. Noninterest expense for the first quarter of 2026 totaled $3.5 million, representing an increase of $391 thousand, or 12.5%, when compared to $3.1 million for the first quarter of 2025. The increase was primarily related to an increase in salaries and employee benefits, data processing fees and ATM and debit card fees.

Balance Sheet Highlights

As of March 31, 2026, total assets were $577.6 million, an increase of $15.5 million, or 2.7%, from $562.2 million as of December 31, 2025. Year-over-year total assets increased $33.2 million, or 6.1%, from $544.4 million as of March 31, 2025.

Loans, net of the allowance for credit losses, totaled $406.6 million as of March 31, 2026, representing an increase of $4.8 million, or 1.2%, from $401.8 million as of December 31, 2025. Loans secured by commercial real estate increased $2.4 million, or 2.7%, and loans secured by residential real estate increased $2.2 million, or 0.7%. Year-over-year net loans grew $23.3 million, or 6.1%, from $383.2 million as of March 31, 2025. The year-over-year increase was attributed to organic loan growth throughout the Company’s market area. The effective yield on the average loans was 5.88% for the quarter ended March 31, 2026, compared to 5.79% and 5.58% for the quarter ended December 31, 2025 and March 31, 2025, respectively.

Cash and cash equivalents increased $12.4 million, or 40.0% to $43.3 million at March 31, 2026 from $30.9 million at December 31, 2025. The increase in cash and cash equivalents was the result of an increase in funding from deposits. Year-over-year cash and cash equivalents increased $13.1 million, or 43.5%, from $30.2 million as of March 31, 2025.

Investment securities, excluding restricted securities, were $102.5 million, a decline of $1.8 million, or 1.7%, from $104.3 million as of December 31, 2025. The decrease in investment securities was the result of paydowns on available for sale securities totaling $1.7 million. Year-over-year investment securities, excluding restricted securities, decreased $3.9 million, or 3.6%, from $106.3 million as of March 31, 2025.

Deposits totaled $535.7 million as of March 31, 2026, an increase of $16.8 million, or 3.2%, from $518.9 million as of December 31, 2025. This increase was attributed to an increase in noninterest bearing deposits and interest bearing deposits of $12.4 million and $4.4 million, respectively. Year-over-year total deposits increased $32.8 million, or 6.5%, from $502.9 million as of March 31, 2025. The Company’s ratio of noninterest bearing deposits to total deposits was 26.7% as of March 31, 2026, compared to 25.2% as of December 31, 2025 and 24.8% as of March 31, 2025. Brokered deposits totaled $15.0 million as of March 31, 2026, compared to $25.1 million as of December 31, 2025 and March 31, 2025.

The Company maintains on and off-balance sheet liquidity through cash and cash equivalents, unpledged securities at fair value, Federal Home Loan Bank (FHLB) and Federal Reserve borrowing capacities and unsecured correspondent bank lines of credit. In total, on and off-balance sheet liquidity sources exceeded $317.0 million as of March 31, 2026.

There were no outstanding borrowings as of March 31, 2026, representing a decrease of $2.1 million at December 31, 2025 and a decrease of $5.6 million at March 31, 2025.

As of March 31, 2026, shareholders’ equity was $37.5 million, representing an increase of $734 thousand, or 2.0%, from $36.8 million at December 31, 2025. The increase in shareholders’ equity was attributed to net income of $1.1 million for the quarter ended March 31, 2026 offset in part by dividends declared and paid totaling $373 thousand and an increase in accumulated other comprehensive loss of $25 thousand. Year-over-year shareholders’ equity increased $6.0 million, or 19.2%, from $31.4 million as of March 31, 2025.

As of March 31, 2026, book value per share increased to $145.61 from $142.76 per share at December 31, 2025 and $122.11 per share at March 31, 2025.

The Bank’s regulatory capital ratios remain above applicable regulatory requirements for well-capitalized institutions under the Prompt Corrective Action framework. The Tier 1 capital ratio was 8.12% at March 31, 2026 and December 31, 2025 and 7.79% at March 31, 2025. The ratio of Common Equity Tier 1 capital and Tier 1 capital to risk weighted assets was 12.55%, 12.66% and 12.31% at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. The total risk-based capital ratio was 13.80%, 13.91% and 13.54% at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Management maintains regular monitoring of capital planning strategies to support and maintain adequate capital levels.

Asset Quality

Asset quality remains strong with historically low levels of past dues and nonperforming assets defined as loans 90 days or more delinquent, nonaccrual loans and other real estate owned. As of March 31, 2026, loans past due 30 to 89 days and still accruing interest totaled $19 thousand, compared to $136 thousand, or 0.03%, of total loans at December 31, 2025, and $127 thousand, or 0.03% of total loans at March 31, 2025.

There was one residential real estate loan with a balance of $26 thousand that was past due 90 days and still accruing interest, compared to no loans past due more than 90 days and still accruing interest at December 31, 2025 and one consumer loan with a balance of $29 thousand at March 31, 2025. There were three nonaccrual loans totaling $287 thousand, or 0.07% of total loans at March 31, 2026 and December 31, 2025, all of which are considered collateral dependent and individually evaluated for impairment. There was one nonaccrual loan totaling $47 thousand, or 0.01% of total loans at March 31, 2025.

Allowance and Provision for Credit Losses

The Company recorded a provision for credit losses on loans of $140 thousand for the quarter ended March 31, 2026, compared to $153 thousand for the fourth quarter of 2025 and $42 thousand for the first quarter of 2025.

For the quarter ended March 31, 2026, net charge offs totaled $1 thousand and were primarily related to consumer loans, compared to net charge offs of $16 thousand for the fourth quarter of 2025 and $70 thousand for the first quarter of 2025.

At March 31, 2026, the allowance for credit losses for loans was $4.5 million, or 1.10% of total loans, compared to $4.4 million, or 1.08% as of December 31, 2025, and $4.1 million, or 1.05% as of March 31, 2025. The increase in the allowance for credit losses was primarily attributed to new loan volume and change in the weighted average remaining maturity of the loan portfolio. There were no specific reserves at March 31, 2026, December 31, 2025 and March 31, 2026. Loans considered collateral dependent totaled $2.0 million at March 31, 2026 and December 31, 2025, and $2.2 million at March 31, 2025. Management believes that the allowance for credit losses related to loans is adequate to provide for expected credit losses within the loan portfolio at March 31, 2026.

The allowance for credit losses on unfunded commitments totaled $181 thousand on March 31, 2026, $206 thousand on December 31, 2025, and $187 thousand on March 31, 2025. The Company recorded a release of provisions for credit losses on unfunded commitments totaling $25 thousand for the first quarter of 2026 and provisions for credit losses on unfunded commitments totaling $5 thousand for the fourth quarter 2025 and $33 thousand for the first quarter of 2025.

There was no allowance for credit losses on investment securities at March 31, 2026, December 31, 2025 and March 31, 2025.

About JSB Financial Inc.

JSB Financial Inc. (OTC Pink: JFWV) is the holding company for Jefferson Security Bank, an independent community bank operating six banking offices located in Berkeley County and Jefferson County, West Virginia and Washington County, Maryland. Founded in 1869, Jefferson Security Bank serves individuals, businesses, municipalities and community organizations through a comprehensive suite of banking services delivered by an exceptional team that puts customers first. Jefferson Security Bank has received industry recognition by American Banker magazine five years in a row. Most recently, as a Top 100 Community Bank in 2024 and prior as a Top 200 Community Bank for four consecutive years. Operating for over 155 years, Jefferson Security Bank is the oldest, independent, locally owned, and managed bank in West Virginia. Visit www.jsb.bank for more information.

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)