Jefferson Bancshares, Inc. (NASDAQ: JFBI), the holding company for Jefferson Federal Bank (the “Bank”), announced net income for the quarter ended September 30, 2012 of $295,000, or $0.05 per diluted share, compared to a net loss of $958,000, or $0.15 per diluted share, for the quarter ended September 30, 2011. The improvement in net income is primarily due to a decrease in the provision for loan losses more than offsetting a decrease in net interest income.
Anderson L. Smith, President and Chief Executive Officer, commented, “We are pleased to report our third consecutive profitable quarter. Improvements in asset quality trends have resulted in a lower provision for loan losses for the quarter ended September 30, 2012 compared to the prior year. However, our ability to maintain net interest income is being challenged by weak loan demand combined with the ongoing low interest rate environment.”
Net interest income decreased $642,000, or 13.5%, to $4.1 million for the quarter ended September 30, 2012 compared to $4.8 million for the same period in 2011. The decrease in net interest income is primarily due to lower average balances and lower yields on loans, partially offset by lower average balances and lower rates on deposits. The net interest margin was 3.57% for the quarter ended September 30, 2012 compared to 3.83% for the same period in 2011. The net interest margin continues to trend downward, as yields on interest-earning assets have declined more than the reductions in the cost of funds.
Noninterest income decreased $147,000, or 24.4%, to $456,000 for the quarter ended September 30, 2012 compared to $603,000 for the same period in 2011 due primarily to a $140,000 increase in loss on sale of foreclosed real estate.Total noninterest expense decreased $114,000, or 2.8%, to $3.9 million for the quarter ended September 30, 2012 compared to $4.0 million for the same period in 2011 due primarily to a decrease in valuation adjustments and expenses on other real estate owned of $193,000, or 47.8%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV