JD Bancshares, Inc. (OTCQX:JDVB), the parent company of JD Bank, reported unaudited results for the three and nine-month periods ended September 30, 2026. Quarterly net income was $3,673,220, or $1.07 per share, while net income for the nine-month period was $9,969,883, or $2.91 per share.
#Quarterly and nine-month earnings
Third-quarter net income compared with $3,329,725, or $0.97 per share, for the linked quarter ended June 30, 2026, and $3,777,235, or $1.10 per share, for the three-month period ended September 30, 2025.
Pre-tax, pre-provision operating income was $4,850,443 in the quarter. That was $802,820 above the linked quarter and $576,258 higher than the prior-year quarter. JD Bancshares attributed the change primarily to increased net interest income and non-interest income, partly offset by higher non-interest expenses.
For the nine months ended September 30, 2026, pre-tax, pre-provision operating income was $13,143,914, compared with $11,729,678 for the prior-year period. The release reported a 12.06% increase, supported by a 7.70% rise in net interest income and an 8.10% increase in non-interest income, partly offset by a 7.70% increase in non-interest expense.
#Net interest income and margin
Net interest income reached $12.6 million in the third quarter, compared with $12.1 million in the linked quarter and $11.7 million in the prior-year quarter. The company said the quarterly increase reflected higher yields on earning assets, partly offset by lower earning-asset volume and higher volume and rates on interest-bearing liabilities.
Net interest margin was 4.25% for the quarter, compared with 4.14% in the linked quarter and 4.07% in the prior-year quarter. For the nine-month periods ended September 30, 2026, and 2025, net interest margin increased by 17 basis points to 4.18% from 4.01%.
Average loans outstanding were $781.9 million in Q3 2026, compared with $772.6 million in Q2 2026 and $767.2 million in Q3 2025. The yield on loans rose to 6.92% from 6.81% in the linked quarter and 6.78% in the prior-year quarter.
The loan to deposit ratio increased from 69.1% at December 31, 2025, to 70.6% at September 30, 2026.
#Non-interest income and expenses
Third-quarter non-interest income was $3.2 million, compared with $2.9 million in both the linked and prior-year quarters. Service charges and fees associated with deposit accounts were $2.3 million, while interchange revenue was $1.3 million and revenue from non-sufficient funds was $791,000.
Gains on the sale of originated mortgage loans were $115,000 in the quarter. JD Bancshares said higher mortgage rates continued to hinder those gains. Other non-interest income was $822,000, compared with $592,000 in the linked quarter and $625,000 in the prior-year quarter.
Non-interest expense was $11.3 million in Q3 2026, compared with $11.0 million in Q2 2026 and $10.4 million in Q3 2025. Salary and benefits expense was $6.1 million, while occupancy expense was $1.6 million and data processing expense was $1.2 million.
#Asset quality and credit provisions
Loans past due 30 to 89 days totaled $1.2 million, or 0.16% of total gross loans, at September 30, 2026, compared with $1.8 million, or 0.23%, at December 31, 2025.
Total nonperforming assets, including non-accrual loans, other real estate owned and repossessed assets, declined to $5.1 million from $6.8 million at December 31, 2025. Non-accrual loans were $2.8 million, compared with $3.9 million at year-end 2025. Other real estate owned was $2.2 million, compared with $3.0 million, while repossessed assets increased to $71,000 from $39,000.
The provision for credit losses was $118,000 in the current quarter, compared with $17,000 in the linked quarter and a release of $339,000 in the prior-year quarter. The Allowance for Credit Losses was $8.9 million, or 1.15% of total loans, at both September 30, 2026 and December 31, 2025.
Management said it believes the current Allowance for Credit Losses is adequate, but noted that regulators, increased risks in the loan portfolio or changes in economic conditions could require additional adjustments. The company also said there is no assurance that eventual sales of other real estate owned will equal or exceed carrying values.
#Balance sheet and capital
Total assets were $1.2 billion at September 30, 2026, compared with $1.3 billion at December 31, 2025. The company reported new net loan growth of $7.2 million during the nine months ended September 30, 2026.
Total deposits declined by $15.5 million through September 30, 2026. Interest-bearing demand deposits fell by $44.2 million, while non-interest-bearing demand deposits decreased by $2.8 million. Savings and money market accounts increased by $14.9 million, and time deposits rose by $16.6 million.
Stockholders’ equity decreased to $97.4 million from $103.1 million at December 31, 2025. JD Bancshares attributed the change primarily to a $12.6 million increase in accumulated other comprehensive loss and $3.2 million in dividends paid to common shareholders, partly offset by year-to-date earnings of $10.0 million. Tangible book value per common share was $27.20 at September 30, 2026, compared with $28.86 at December 31, 2025.
#Performance ratios and expansion plans
Return on average assets was 1.16% in the quarter, compared with 1.06% in the linked quarter and 1.23% in the prior-year quarter. Return on average equity was 13.67%, compared with 12.70% and 16.36% in the comparative quarters.
CEO Paul Brummett, II said the company’s interest-rate outlook remained uncertain because of geopolitical pressure, uncertainty regarding inflation and higher costs for consumers. He said JD Bancshares was positioned for a “higher for longer” interest-rate environment.
Brummett said the company closed on the purchase of a Slidell location in August 2026 and expected to open it in the fourth quarter of 2026. He said renovations had begun at the Mandeville location, which is expected to open in the first or second quarter of 2027. Planning was in its final stages for a third Lafayette location on Settlers Trace Blvd., which the company expects to open in late 2027.
JD Bancshares is the bank holding company of JD Bank, a Louisiana state-chartered bank headquartered in Jennings, Louisiana. JD Bank operates through 22 full-service branch offices and one loan and deposit production office along the I-10 and I-12 corridors from Lake Charles to Mandeville, Louisiana.
The company said future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, interest-rate movements and competition could cause actual results to differ materially from anticipated results.
#Key Takeaways
- JD Bancshares reported Q3 2026 net income of $3,673,220, or $1.07 per share.
- Nine-month net income was $9,969,883, or $2.91 per share, while pre-tax, pre-provision operating income was $13,143,914.
- Third-quarter net interest margin was 4.25%, compared with 4.14% in the linked quarter and 4.07% in the prior-year quarter.
- Total nonperforming assets declined to $5.1 million at September 30, 2026, while the Allowance for Credit Losses remained $8.9 million.
- Total deposits decreased by $15.5 million and stockholders’ equity fell to $97.4 million through September 30, 2026.
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