JENNINGS, LA / ACCESS Newswire / January 22, 2026 / JD Bancshares, Inc. (the "Company"), (OTCQX:JDVB), the parent holding company of JD Bank (the "Bank"), reports its unaudited financial results for the three and twelve-month periods ended December 31, 2025.

Net income is $3,232,870 or $0.94 per share for the three-month period ended December 31, 2025, compared to $3,777,235 or $1.10 per share for the linked quarter ended September 30, 2025, and $3,245,496 or $0.95 per share for the three-month period ended December 31, 2024. Pre-tax, pre-provision operating income (PTPPI) for the current quarter is $4,382,523, reflecting an increase of $108,338 compared to $4,274,185 for the linked quarter, and an increase of $455,822 compared to $3,926,701 in the prior year quarter. PTPPI excludes taxes, provision for loan losses, losses on the sale of other real estate owned (OREO), losses on the sale of investment securities, and other non-operating expenses. The increase in PTPPI between the current and linked quarter is primarily due to higher levels of net interest income and lower non-interest expenses, and the increase between the current and prior year quarter is attributable to higher net interest income and non-interest income, offset by higher non-interest expense.

For the twelve-month period ended December 31, 2025, net income is $12,862,338 or $3.75 per share compared to $13,632,825 or $3.98 per share for the prior year comparative period. PTPPI for the current twelve-month period is $16,112,203 reflecting a 1.51% increase from $15,872,880 for the prior year. The increase is attributable to a 4.40% increase in net interest income which is slightly offset by a 4.00% increase in non-interest expense.

Paul Brummett, II, CEO commented, "Our team, our commitment to "Community," and our disciplined strategy execution led to successful results for 2025. As we move forward into 2026, we will continue to build the infrastructure to serve our new markets and enhance services in our existing markets. During 2025, we were honored to be recognized as one of the best banks in the country to work for by the American Banker magazine. Overall, I am pleased with the performance of the Company and our team's commitment to being "Louisiana's Community Bank.""

Asset Quality

Loans past due 30 to 89 days as of December 31, 2025, total $1.8 million or 0.23% of total gross loans compared to $2.9 million or 0.40% at December 31, 2024. Total nonperforming assets, including loans on non-accrual status, OREO and repossessed assets declined to $6.8 million at December 31, 2025, from $7.6 million at December 31, 2024. Loans currently in non-accrual status declined to $3.9 million from $5.4 million at year-end 2024 and OREO is currently $2,951,000 compared to $2,205,000. There are no repossessed assets at December 31, 2025 or at the prior year end. 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 or greater than the carrying values.

The Bank recorded a provision of $116,000 to its Allowance for Credit Losses (ACL) in the current quarter compared to releasing $339,000 in the linked quarter and a provision of $146,000 for the prior year quarter. The ACL is $8.9 million at December 31, 2025, or 1.15% of total loans compared to $9.1 million at December 31, 2024, or 1.26% of total loans. We recognized net charge-offs in the current quarter of $405,000, $40,000 for the linked quarter and $78,000 for the prior year quarter. Net charge-offs for the comparative twelve-month periods ended December 31, 2025, and 2024 are $440,000 and $250,000, respectively. While we believe the current level of our ACL is adequate, there is no assurance that regulators, increased risks in the loan portfolio, or changes in economic conditions will not require additional adjustments to the ACL.

Net Interest Income

Net interest income for the current quarter is $11.8 million, reflecting an increase of $62,000 compared to $11.7 million for the linked quarter ended September 30, 2025. The current quarter results reflect an increase of $973,000 over the $10.8 million reported for the prior year quarter ended December 31, 2024. Comparing net interest income for the December and September quarters, the increase is primarily due to lower volume and rate on interest-bearing liabilities. The increase in net interest income between the current and prior year quarter is due to higher volume and yield on earning assets and lower volume of interest-bearing liabilities.

Total interest income on all earning assets for the current quarter is $15.4 million compared to $15.6 million for the linked and $14.6 million for prior year quarters. Interest income on loans is $13.0 million, $13.1 million and $11.9 million for the three comparative quarters, respectively. Average loans outstanding are $768.1 million for Q4 2025, $767.2 million for Q3 2025 and $729.4 million for Q4 2024. The yield on loans decreased to 6.74% in the current quarter from 6.78% in linked quarter and increased from 6.52% for the prior year quarter. As other earning assets have been used to support loan growth over the past twelve months, interest income from interest-bearing deposits at banks and investment securities have experienced declines from both a quarterly and year-over-year comparison.

Total interest expense is $3.7 million, $3.8 million and $3.8 million for the three comparative quarters, respectively. Interest expense on deposits is $3.2 million in Q4 and Q3 2025, and $2.9 million in Q4 2024. The cost of interest-bearing liabilities is 1.65% for the current quarter, 1.73% for the linked quarter and 1.74% for the prior year quarter. The average volume of interest-bearing deposits is $834.6 million for the current quarter, reflecting an increase of $15.6 million from the linked quarter and an increase of $48.5 million from the prior year quarter. Interest expense on subordinated debt and other borrowings is $453,000 in the current quarter compared to $653,000 in the linked quarter and $924,000 in the prior year quarter. The decrease in interest expense from borrowings compared to the linked quarter is due to a decrease in the volume and rates on borrowings, while the decrease compared to the prior year quarter is due only to a decrease in the volume of those borrowings. The cost of funds, which includes the impact of noninterest-bearing deposits, is 1.30% for the current period compared to 1.36% for Q3 2025 and 1.37% for Q4 2024.

Net interest income for the current twelve-month period is $45.8 million compared to $43.8 million for the prior year period. Total interest income from earning assets is $60.3 million producing a yield of 5.29% compared to $57.7 million and a yield of 5.13% a year ago. The increase in the volume of average earning assets outstanding of $14.4 million and the 16 basis point increase in yields on those assets resulted in a $2.6 million increase in interest income from earning assets. Total interest expense increased from $13.8 million and cost of interest-bearing funds of 1.62% for the prior year period to $14.5 million and 1.66% for the current twelve-month period. The higher interest expense is due to the 4 basis point increase in the cost of interest-bearing funds. The total cost of funds is currently 1.31% compared to 1.26% for the prior year.

The net interest margin is 4.09% for the current quarter compared to 4.07% in the linked quarter and 3.83% for the prior year quarter. For the twelve-month periods ended December 31, 2025, and 2024, net interest margin increased by 11 basis points to 4.03% from 3.92%.

We continue to strive to improve our loan to deposit ratio, transitioning lower yielding assets into higher yielding asset categories. Our loan to deposit ratio has decreased from 70.7% at December 31, 2024, to 68.94% at December 31, 2025, due to deposit growth that outpaced loan growth over that period.

Non-Interest Income

Total non-interest income is $2.9 million for the current and linked quarters and $2.8 million for the prior year quarter. Service charges and fees associated with deposit accounts are $2.1 million for all reported quarters. The largest component of service charges and fees is interchange revenue on debit card transactions, which is $1.2 million for all compared quarters. Revenue from non-sufficient funds (NSF) is $712,000 in the current quarter compared to $752,000 in the linked quarter and $703,000 in the prior year quarter.

Higher mortgage rates continue to negatively impact the gains on the sale of originated mortgage loans. Gains on the sale of originated mortgages is $127,000 for the current quarter compared to $115,000 for Q3 2025 and $85,000 for Q4 2024.

Other non-interest income is $618,000 for the current quarter compared to $625,000 for the linked quarter and $595,000 for the prior year quarter. Revenues from trust and brokerage activities comprise the largest components of other non-interest income. The sum of these two revenue streams is $380,000, $332,000 and $311,000 for the three comparative quarters, respectively. The current quarter includes $8,000 of non-recurring, non-operating revenue items.

Non-interest income for the twelve-month period ended December 31, 2025, is $11.2 million, compared to $11.1 million for the prior year period. Service charges and fees declined by $247,000 to $8.4 million from $8.6 million and were negatively impacted by a $164,000 decrease in NSF revenue and a $28,000 decline in interchange revenue. Gains on sale of originated mortgage loans is $415,000 compared to $382,000 in the prior year, and other non-interest income is $2.4 million compared to $2.2 million in the prior year. Other non-interest income for the current twelve-month period is positively impacted by a $319,000 increase in trust and brokerage revenue.

Non-Interest Expense

Total non-interest expense is $10.3 million for the current quarter, $10.4 million for the linked quarter and $9.8 million for the prior year quarter. Salary and benefits expense is the largest component of non-interest expense and is $5.6 million for the current quarter, $5.9 million for the linked quarter, and $5.3 million for the prior year quarter.

Occupancy expense is $1.4 million for both the current and linked quarters and $1.5 million for the prior year quarter.

Data processing expense is $1.3 million for the current quarter, $1.2 million in the linked quarter and $866,000 for the prior year quarter. Advertising and public relations expense totals $350,000 for the current quarter and $374,000 for the linked quarter compared to $349,000 for the December 2024 quarter. Other non-interest expense is $1.8 million for Q4 2025 and $1.6 million for Q3 2025 and $1.7 million for Q4 2024. The largest components of other non-interest expenses are professional fees, ad valorem taxes, FDIC insurance assessments and other losses. Included in other non-interest expense are net losses on the sale of OREO of $52,000, $50,000 and $94,000 for each of the comparative quarters.

Non-interest expense for the twelve-month period ended December 31, 2025, is $41.0 million compared to $39.5 million for the prior year. Increases in salaries and employee benefits, occupancy, advertising and public relations, and data processing are partially offset by a decrease in other non-interest expense. Net losses on the sale of OREO for the current and prior twelve-month periods is $247,000 and $387,000, respectively.

Income tax expense is $983,000 for the current quarter compared to $785,000 for the linked quarter and $441,000 for the December 31, 2024 quarter. The effective tax rate is 23.31%, 17.21% and 11.97% for the three comparative quarters, respectively. Current year-to-date income tax expense is $2.9 million with an effective rate of 18.30% compared to $2.5 million and 15.65% for the prior year twelve-month period.

Balance Sheet

Total assets are $1.3 billion at December 31, 2025, and $1.2 billion at December 31, 2024. In the twelve months since December 31, 2024, the Company has experienced new net loan growth of $45.1 million.

Total deposits increased by $91.6 million through December 31, 2025. The largest increase occurred in time deposits, which increased $30.5 million. Interest-bearing demand deposits, savings and money market accounts and noninterest-bearing demand accounts experienced year-to-date increases of $27.5 million, $23.0 million, and $10.6 million, respectively.

Stockholders' equity increased by $20.6 million to $103.1 million at December 31, 2025, from $82.5 million at December 31, 2024. The increase is primarily due to year-to-date earnings of $12.9 million and a decrease in accumulated other comprehensive losses of $11.7 million, partially offset by dividends paid to common shareholders of $4.1 million.

Tangible book value per common share is $28.88 at December 31, 2025 compared to $22.89 at December 31, 2024.

Key Performance Ratios

Return on average assets (ROA) declined to 1.05% for the current quarter compared to 1.23% for the linked quarter and 1.08% for the prior year quarter. Return on average equity (ROE) is 12.93%, 16.36% and 14.54% for the three comparative quarters ended December 2025, September 2025 and December 2024, respectively. ROA and ROE for the twelve-month periods ended December 31, 2025, and 2024 is 1.07% and 1.16%, and 14.18% and 17.16%, respectively.

Chairman Succession

The Company announced that at its regularly scheduled meeting on January 20, 2026, that Dr. Daryl V. Burckel has been appointed as Chairman of the Board of JD Bancshares, Inc. and JD Bank, the Company's banking subsidiary, effective February 1, 2026. Dr. Burckel will succeed long-time Chairman Dan L. Donald, Jr., who announced his intention to retire as Chairman, effective January 31, 2026. Mr. Donald intends to continue his service as a director of the Company and JD Bank and to stand for re-election to both boards.

Mr. Donald has served as a director of the Company and JD Bank since 1979, and as Chairman of the Board of the Company and JD Bank since 2011 and 2010, respectively. Mr. Donald also served as President and Chief Executive Officer of the Company and JD Bank from 1996-2012 and then again in 2019, and his long and storied history with the bank dates back almost 65 years to his days as a teller at age 16.

"My decision to step down as Chairman reflects my confidence in the strong bench of directors and senior management that we have developed over the years," stated Chairman Donald. "While I am retiring as Chairman, my commitment to JD Bancshares remains unwavering, and I intend to stay actively involved as a director for many years to come. My family will also continue to be principal shareholders. However, it's time to pass the torch to new leadership at the Board level, and I can't think of a more capable successor. Daryl has demonstrated a commitment to our markets for decades, shown strength and vision in leadership over his tenure as President of McNeese State University and has been an active and engaged member of our Board for more than 15 years."

"I am honored to have the opportunity to lead this group of active and diverse board members who share a vision of an organization committed to the values of community banking, capable of adapting in an evolving financial services industry, and focused on delivering an attractive return to our shareholders," said incoming Chairman Burckel. "As a Board, we view this transition not as a change in direction, but as a continuation of the long-held principles that have made JD Bank a strong and reliable partner for the many businesses, professionals and consumers who are based in or serve our markets."

Dr. Burckel has served as a director of the Company and JD Bank since 2009 and currently serves as Chair of the bank's Investment/Asset Liability (ALCO) Committee and its Trust Committee. A long-time resident of Lake Charles, Louisiana, Dr. Burckel serves as a Professor of Accounting in the McNeese State University College of Business and holds the Arthur Hollins Professorship in Accounting. He has over 39 years of higher education and industry experience. In July 2017, Dr. Burckel was selected as the seventh president of McNeese State University and served seven years through June 2024. Prior to assuming the presidency, he served the university as an administrator and professor in the College of Business.

As President of McNeese State University, he was responsible for the mission of educating, preparing and developing the future work force for southwest Louisiana's economy. During his tenure, he was integrally involved in leading the university through a number of critical challenges, including the COVID-19 pandemic and the development of virtual learning environments, and four declared natural disasters occurring within one year, which resulted in $280 million in property damage to the campus, unprecedented damage to the Lake Charles community and significant disruptions to university enrollment. Forged by these events, Dr. Burckel and his administration worked collaboratively with federal, state and local government officials to secure political support and funding, renovated and transformed the McNeese campus, refocused its mission and positioned the university for growth in succeeding years.

Dr. Burckel is a graduate of McNeese State University, where he earned a Bachelor of Science in Accounting and a Master of Business Administration, and Mississippi State University, where he earned his PhD in Accounting. He attended McNeese on a football scholarship where he was starting middle linebacker for the Cowboys on two Southland Conference championship teams. He was awarded one of four national NCAA-Postgraduate Scholarships that he used to earn his MBA, and he is a member of the McNeese Hall of Fame. Dr. Burckel is also a veteran of the United States Army Reserve, where he served honorably in Operation Desert Storm.

Dr. Burckel started his academic career at McNeese in 1986 and later held faculty positions at the University of New Orleans and Mississippi State University. He rejoined the McNeese faculty in 1992, and he served as head of the McNeese Department of Accounting, Finance and Economics.

Dr. Burckel is also a certified public accountant and a certified valuation analyst and his areas of expertise include financial analysis, business valuation of closely-held business interests, and taxation. He has performed extensive consulting work for local and state governmental agencies, small businesses and companies, and served as a member of numerous boards and professional organizations, including the Lake Charles Harbor & Terminal District, the Louisiana Land Trust, the Louisiana Housing Corporation and the Council for a Better Louisiana.

Daryl and wife, Mary, have been married for forty-five years and have two daughters and four grandchildren.

About JD Bancshares, Inc.

JD Bancshares, Inc. is the bank holding company of JD Bank, a Louisiana 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 21 full-service branch offices and two loan and deposit production offices 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 on the OTCQX Best Market 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.

For more information contact:

Paul Brummett, II (CEO) (337) 246-5395
Jared Doucet (CFO) (337) 246-5409
Website: www.jdbank.com

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

JD BANCSHARES, INC. AND SUBSIDIARIES
JENNINGS, LOUISIANA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

JD BANCSHARES, INC. AND SUBSIDIARIES

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JD BANCSHARES, INC. AND SUBSIDIARIES

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