Jeffersonville Bancorp is the holding company for The First National Bank of Jeffersonville. The Bank is a full service institution employing approximately 113 people and serves all of Sullivan County, New York as well as some areas of adjacent counties in New York and Pennsylvania. Jeffersonville Bancorp has a market cap of $39.2 million; its shares were traded at around $9.25 with and P/S ratio of 1.7. The dividend yield of Jeffersonville Bancorp stocks is 5.6%. Highlight of Business Operations:During the period from December 31, 2008 to September 30, 2009, total assets increased $28,803,000 or 7.2%. The increase was due to $18,101,000 or 19.8% increase in investment securities, $7,129,000 or 2.7% increase in loans and an increase of $4,200,000 in federal funds sold. The net increase in total assets was funded by a large increase in deposits.
Total deposits increased from $296,724,000 at December 31, 2008 to $339,856,000 at September 30, 2009, an increase of $43,132,000 or 14.5%. NOW and super NOW accounts increased $7,362,000 or 26.2%, savings and insured money market deposits increased $7,071,000 or 9.6% and time deposits increased $24,659,000 or 18.1% due, in part, to the Bank s enhanced sales initiative, along with changes and uncertainty in the marketplace. Depositors, for example, have increasingly brought deposits to banks, possibly due to lack of other investment opportunities and uncertainty in the stock market. Demand deposits increased $4,040,000 to $62,688,000 at September 30, 2009, an increase of 6.9%. Short-term debt and long-term debt in the form of Federal Home Loan Bank borrowings decreased $10,284,000 and $5,000,000 respectively, because the increase in total deposits satisfied the Company s liquidity needs.
Total stockholders equity increased $1,322,000 or 3.1% from $42,662,000 at December 31, 2008 to $43,984,000 at September 30, 2009. This increase was the result of net income of $2,448,000, a decrease of $526,000 in accumulated other comprehensive loss, less the payment of cash dividends of $1,651,000.
For the nine months ended September 30, 2009 and 2008, a provision of $500,000 and $140,000 was recorded, respectively. Total charge-offs for the nine month period ended September 30, 2009 were $385,000 compared to $468,000 for the same period in the prior year, and recoveries were $140,000 and $160,000 for the periods ended September 30, 2009 and 2008, respectively. The amounts represent net charge-offs of $245,000 versus $308,000 for the nine months ended September 30, 2009 and 2008. Based on management s analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.
The allowance for loan losses was $3.4 million as of September 30, 2009 and $3.2 million as of September 30, 2008 and December 31, 2008. Nonperforming loans were $10.9 million at September 30, 2009 and $6.1 million at December 31, 2008. An increase in nonperforming loans with a relatively stable allowance for loan losses is reflected in the decrease of the allowance s coverage on nonperforming loans from 127.9% at September 30, 2008 to 51.8% at December 31, 2008 and 31.5% at September 30, 2009. While nonperforming loans have increased, the Bank s loans remain well collateralized, and with the Bank s minimal loss history and low charge-offs, management believes the allowance for loan losses is adequate as of September 30, 2009.
As of September 30, 2009, there were $9,700,000 in loans, compared to $5,191,000 at December 31, 2008, which were considered to be impaired. Management includes market risks in assessing the adequacy of loan losses and in estimating carrying values of foreclosed real estate. As impaired loans are well collateralized, management is comfortable with only a specific reserve of $446,000 at September 30, 2009 and $149,000 at December 31, 2008. The increase in impaired loans during the nine months ended September 30, 2009 is principally the result of weaker local and national economic conditions which has negatively impacted the financial condition of certain of the Bank's customers.
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