JSB Financial Inc. Reports 2025 Full Year and Fourth Quarter Earnings Results

SHEPHERDSTOWN, W.Va.–(BUSINESS WIRE)–JSB Financial Inc. (the Company) (OTCID: JFWV), the bank holding company of Jefferson Security Bank (the Bank), reported consolidated net income for the year ended December 31, 2025 of $4.2 million, representing an increase of $60 thousand or 1.5% when compared to $4.1 million for the year ended December 31, 2024. Basic and diluted earnings per common share were $16.17 and $15.94 for the years ended December 31, 2025 and 2024, respectively. Return on average assets and return on average equity for December 31, 2025, were 0.76% and 12.72%, respectively, compared to 0.77% and 15.30%, respectively, for December 31, 2024.

For the fourth quarter of 2025, unaudited consolidated net income was $1.3 million, representing an increase of $647 thousand or 96.1%, when compared to net income of $673 thousand for the fourth quarter of 2024. Basic and diluted earnings per common share were $5.13 for the fourth quarter of 2025, compared to $2.62 for the fourth quarter of 2024.

“We are pleased to deliver solid fourth quarter and full year results driven by loan portfolio and core deposit growth, strong asset quality and consistent profitability,” said President and Chief Executive Officer, Cindy Kitner. “Throughout the year, we maintained a strong liquidity position and expanded our net interest margin. We also delivered a strong return to our shareholders with an 8% increase in the annual dividend and an increase of 22% in book value per share. With the dedication and hard work of our incredible team, we believe that we are well positioned to sustain momentum in the years ahead.”

Income Statement Highlights

For the year ended December 31, 2025, net interest income totaled $15.7 million, representing an increase of $1.2 million, or 8.1%, from $14.5 million for the year ended December 31, 2024. The results for the year ended December 31, 2024 include the recognition of an interest recovery totaling $1.3 million for a prior nonperforming loan.

Total interest income increased $611 thousand, or 2.4%, to $26.1 million for the year ended 2025, compared to $25.5 million for the year ended 2024. The increase in total interest income was attributed to higher interest and fees on loans which totaled $22.4 million as of December 31, 2025, representing an increase of $862 thousand, when compared to $21.5 million as of December 31, 2024. The increase in interest and fees on loans was primarily attributed to higher average loans balances from organic growth and increased yields on loans resulting from new loan originations and continued repricing of the adjustable rate loan portfolio.

For the year ended December 31, 2025, total interest expense was $10.4 million, representing a decrease of $566 thousand, or 5.2%, when compared to $11.0 million for the year ended December 31, 2024. This change as primarily attributed to the lower average balance of borrowings and declining interest rates on interest bearing deposits.

For the year ended December 31, 2025, the net interest margin was 2.98%, representing an expansion of 14 basis points when compared to 2.84% for the year ended December 31, 2024. The improvement in the net interest margin was primarily related to the increase in yields and higher average balances of interest earning assets combined with lower borrowings and declining interest rates on interest bearing deposits, both of which resulted in lower cost of funds.

Noninterest income totaled $2.4 million for the year ended December 31, 2025, compared to $2.1 million for the same period in 2024. This increase was in part due to the recognition of realized net losses on the sale of available for sale securities of $214 thousand during the fourth quarter of 2024.

Noninterest expense totaled $12.5 million for the year ended December 31, 2025, compared to $11.5 million for the same period in 2024. The increase in noninterest expense was primarily attributed to salaries and employee benefits from increased staffing levels and wages.

When comparing the fourth quarter of 2025 to the fourth quarter of 2024, net interest income increased $797 thousand, or 22.7%, to $4.3 million from $3.5 million. Total interest income increased $426 thousand and total interest expense declined $371 thousand. The increase in total interest income was attributed to an increase in interest and fees on loans of $575 thousand, offset in part by a decline in interest on investment securities of $49 thousand and a decline in other interest and dividend income of $100 thousand. The decline in interest expense was attributed to lower costs on interest bearing deposits of $274 thousand and a decline of $97 thousand in interest expense on borrowings.

Noninterest income totaled $633 thousand for the fourth quarter of 2025, compared to $374 thousand for the same period in 2024. This increase was attributed to the recognition of $214 thousand in realized net losses on the sale of available for sale securities in 2024. Noninterest expense totaled $3.1 million for the fourth quarter of 2025, compared to $3.0 million for the same period in 2024. This increase was primarily related to salaries and employee benefits.

Balance Sheet Highlights

As of December 31, 2025, total assets increased $25.3 million, or 4.7%, to $562.2 million, compared to total assets of $536.9 million as of December 31, 2024.

Loans, net of the allowance for credit losses, increased $23.6 million, or 6.2%, to $401.8 million as of December 31, 2025, compared to $378.2 million as of December 31, 2024. The growth in the loan portfolio was attributed to an increase of $20.0 million, or 7.0%, in loans secured by residential real estate and an increase of $3.2 million, or 3.8%, in loans secured by commercial real estate. The composition of the loan portfolio is predominately 1-4 family residential real estate loans and commercial real estate loans, with total loans secured by real estate representing 97.7% of loans, net of the allowances for credit losses, as of December 31, 2025 and 2024.

Investment securities, excluding restricted securities, were $104.3 million as of December 31, 2025 and $107.0 million as of December 31, 2024. Investment securities decreased $2.7 million, or 2.5%, primarily due to principal repayments and maturities totaling $8.0 million, offset in part by a decrease in the investment portfolio’s unrealized losses on available for sale securities totaling $3.0 million and security purchases net of sales totaling $2.0 million.

Deposits totaled $518.9 million on December 31, 2025, representing an increase of $24.2 million, or 4.9%, when compared to $494.7 million on December 31, 2024. The composition of the deposits changed slightly with noninterest bearing deposit balances representing 25.2% of total deposits as of December 31, 2025, compared to 23.9% of total deposits as of December 31, 2024. At December 31, 2025, noninterest bearing deposit balances increased $12.6 million and interest bearing deposit balances increased $11.6 million, when compared to December 31, 2024.

Borrowings totaled $2.1 million at December 31, 2025, representing a decline of $5.9 million, or 73.7%, from $7.9 million on December 31, 2024. At December 31, 2025, total liquidity sources exceeded approximately $300 million and included on and off-balance sheet liquidity through cash and cash equivalents, unpledged available for sale securities at fair value, Federal Home Loan Bank (FHLB) and Federal Reserve borrowing capacities, and unsecured correspondent bank lines of credit.

Shareholders’ equity totaled $36.8 million on December 31, 2025, representing an increase of $6.8 million, or 22.3%, when compared to $30.0 million on December 31, 2024. Book value per share increased to $142.76 on December 31, 2025 from $116.68 on December 31, 2024. The increase in shareholders’ equity was attributed to net income of $4.2 million and a decline in accumulated other comprehensive loss of $3.2 million. The change in accumulated other comprehensive loss was primarily attributed to a reduction in unrealized losses on the available for sale securities portfolio of $2.2 million and amortization of unrealized holding losses on the held to maturity securities portfolio totaling $498 thousand. The Company declared and paid cash dividends totaling $2.60 per share in 2025, compared to $2.40 per share in 2024.

The Bank’s regulatory capital ratios remain in excess of applicable regulatory requirements for well-capitalized institutions. The Tier 1 leverage ratio improved 6.6% to 8.12% at December 31, 2025 from 7.62% at December 31, 2024. Tier 1 capital, common equity Tier 1 capital and risk-based capital ratios were 12.66%, 12.66% and 13.91%, respectively, at December 31, 2025, representing no change when compared to December 31, 2024. Management maintains regular monitoring of capital management and planning strategies to support and maintain adequate capital levels.

Asset Quality

Asset quality remains strong with historically low levels of nonperforming assets defined as loans 90 days or more delinquent, nonaccrual loans and other real estate owned. As of December 31, 2025, nonperforming assets increased slightly with nonaccruals totaling $287 thousand, or 0.07% of total loans, compared to nonaccruals totaling $47 thousand, or 0.01% of total loans on December 31, 2024. There were no loans past due more than 90 days and still accruing interest and no other real estate owned at December 31, 2025 and 2024.

As of December 31, 2025, loans past due 30 to 89 days and still accruing interest totaled $136 thousand, or 0.03% of total loans, representing a slight change from $134 thousand, or 0.04% of total loans, on December 31, 2024.

Allowance and Provision for Credit Losses

The Company recorded a provision for credit losses on loans of $153 thousand and $383 thousand for the fourth quarter and year ended December 31, 2025, respectively, compared to $62 thousand and $70 thousand for the fourth quarter and year ended December 31, 2024, respectively.

For the fourth quarter and year ended December 31, 2025, the Bank experienced net charge offs totaling $16 thousand and $88 thousand, respectively, compared to no net charges offs for the fourth quarter 2024 and net recoveries of $237 thousand for the year ended December 31, 2024.

On December 31, 2025, the allowance for credit losses on loans was $4.4 million, or 1.08% of total loans, compared to $4.1 million, or 1.07% of total loans on December 31, 2024. The increase in the allowance for credit losses was primarily attributed to loan growth. There were no specific reserves at December 31, 2025 and 2024, and loans considered collateral dependent decreased to $2.0 million at December 31, 2025, from $2.7 million at December 31, 2024.

The allowance for credit losses on unfunded commitments totaled $206 thousand on December 31, 2025, representing an increase from $154 thousand on December 31, 2024. The Company recorded provisions for credit losses on unfunded commitments totaling $5 thousand and $52 thousand for the fourth quarter and year-ended December 31, 2025, respectively, compared to provisions for credit losses on unfunded commitments totaling $13 thousand for the fourth quarter and released provisions for credit losses on unfunded commitments totaling $81 thousand for the year ended December 31, 2024.

There was no allowance for credit losses on investment securities on December 31, 2025 and 2024.

About JSB Financial Inc.

JSB Financial Inc. (OTCID: 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 who put 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

Contacts

Jenna Kesecker, CPA, Executive Vice President
and Chief Financial Officer
304-876-9016