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JEFFERSONVILLE, N.Y. - Jeffersonville Bancorp, Inc. (OTCQB: JFBC), a regional bank with a market capitalization of $84.7 million, reported an increase in first quarter net income to $2,718,000, or $0.64 per share, up from $2,553,000, or $0.60 per share in the first quarter of the previous year. The company attributed the rise in profits primarily to reduced interest expenses, higher loan interest and fees, and an increase in non-interest income. According to InvestingPro analysis, the bank maintains a strong financial health score of 3.05, rated as "GREAT," reflecting its solid operational performance.
The $165,000 year-over-year increase in net income for the quarter was driven by a significant $621,000 decline in interest expenses and a $328,000 boost in loan interest and fees. Non-interest income also rose by $102,000. These gains were partly offset by a $666,000 drop in other interest income, a $46,000 rise in tax expenses, a $43,000 increase in salaries and employee benefits, and a $33,000 hike in other non-interest expenses. Trading at a P/E ratio of 7.46, InvestingPro data suggests the stock is currently undervalued compared to its Fair Value.
George W. Kinne, Jr., President and CEO of Jeffersonville Bancorp, noted that the company had retired all wholesale funding by the end of 2024, which led to a reduction in forward interest expenses. He mentioned that robust loan growth in the first quarter helped to mitigate lower rates on funds held at the Federal Reserve and a planned reduction in securities. Despite the economic uncertainty, Kinne expressed confidence in the company’s highly liquid balance sheet.
Additionally, the Board of Directors declared a cash dividend of $0.15 per share on the common stock, payable on June 5, 2025, to shareholders of record as of May 27, 2025. The company currently offers a 4.25% dividend yield and has maintained dividend payments for 29 consecutive years, as noted by InvestingPro analysis, which offers additional insights through its comprehensive financial metrics and ProTips.
Jeffersonville Bancorp operates as a one-bank holding company through Jeff Bank, which maintains ten full-service branches across Sullivan and Orange County in New York. The stock currently trades at $20.00, sitting comfortably above its 52-week low of $16.51 while showing a robust 19.24% return over the past year.
This financial update is based on a press release statement issued by Jeffersonville Bancorp.
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