JEFFERSONVILLE, N.Y., March 08, 2018 (GLOBE NEWSWIRE) -- Jeffersonville Bancorp, Inc. (OTCQB:JFBC) announced today fourth quarter net income of $253,000 or $0.06 per share compared to $1,026,000 or $0.24 per share for the same quarter in 2016. The decrease in quarterly net income was primarily due to an increase in income tax expense mostly attributable to a write down of deferred tax assets as a result of the Tax Cut and Jobs Act legislation signed into law in late December. Of the $893,000 increase in tax expense, $706,000 was due to the new tax law. Additionally, a one-time consulting fee of $225,000 was incurred to negotiate substantial future savings on a service contract to outsource the Company’s core information technology function. The increases in expense items were partially offset by an increase in total interest and dividend income of $140,000 and a decrease in occupancy and equipment expense of $170,000 relating to a non-recurring valuation allowance recorded in the fourth quarter of 2016.
For the year ended December 31, 2017, net income was $4,292,000 or $1.01 per share compared to $5,118,000 or $1.21 per share in 2016. The decrease in year to date net income was primarily due to an increase in income tax expense of $1,074,000, of which $706,000 was a result of the Tax Cut and Jobs Act legislation signed into law in late December. Salaries and employee benefits increased $421,000 and in 2016, the Company received a one-time benefit of $248,000 from a life insurance policy. These additional expenses and one-time items were partially offset by a $604,000 increase in total interest and dividend income and a negative provision for loan losses of $300,000 due to a large loan recovery.
“We are pleased with our financial results in 2017,” said George W. Kinne, Jr., President and CEO, “Our core earnings remain strong and compare favorably with our local peers. If not for the timing of the new tax law, and the one time consulting fee of $225,000, our net income would have exceeded that of the previous year.”
At its February 13, 2018 meeting, the Board of Directors declared a quarterly cash dividend in the amount of fifteen cents ($0.15) per share on the common stock of the company. The dividend is payable on March 6, 2018 to stockholders of record at the close of business on February 27, 2018.
Jeffersonville Bancorp is a one-bank holding company, which owns all the capital stock of Jeff Bank. Jeff Bank maintains twelve full service branches in Sullivan and Orange County, New York located in Anawana Lake Road/Monticello, Eldred, Callicoon, Jeffersonville, Liberty, Livingston Manor, Loch Sheldrake, Monticello, Narrowsburg, Port Jervis, White Lake and Wurtsboro.
For More Information, call: 845-482-4000
Contact: George W. Kinne, Jr., President – CEO