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Stock market today: Dow hits fresh record, stocks close out strong week as inflation cools

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2 months ago

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Stock market today: Dow hits fresh record, stocks close out strong week as inflation cools

Stocks traded mixed on Friday but closed the week on a high as investors embraced an inflation report seen as crucial to the Federal Reserve’s next decision on interest rate cuts.

The Dow Jones Industrial Average (^DJI) gained 0.3% and finished with a fresh record. The S&P 500 (^GSPC) lost 0.1%, but is coming off a record-high close from the prior session. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) sank about 0.4%.

Despite the mixed trading on Friday, the stock gauges all recorded wins for the week after confidence in the economy returned to the market. The Dow and the S&P added about 0.7%, while the Nasdaq rose 1%.

A solid GDP reading, combined with continued cooling in inflation, has cemented growing conviction that the Fed can nail a “soft landing” as it embarks on a rate-cutting campaign.

The August reading of the Personal Consumption Expenditures (PCE) index, the inflation metric favored by the Fed, showed continued cooling in price pressures. The “core” PCE index, which is most closely watched by policymakers, rose 0.1% month over month, lower than Wall Street forecasts.

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The PCE reading appeared to goose up bets on another jumbo-sized rate cut from the Fed next month. More than half of traders — around 52% — now expect a 50 basis point cut.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Elsewhere, China added to its stream of stimulus measures, boosting markets once again. Mainland stocks scored their biggest weekly win since 2008, and luxury stocks are set for their best week in years as hopes for Chinese demand rise. Meanwhile, shares of Alibaba (BABA, 9988.HK), JD.com (JD, 9618.HK), and Meituan (3690.HK, MPNGY) surged amid the buying spree.

Live13 updates

  • Dow closes with new record

    Mixed trading on Friday still came with weekly wins as all three major gauges were in the green for the week. Investors appeared to welcome the latest inflation report that showed price pressures continuing to sink towards the Federal Reserve’s 2% target.

    The Dow Jones Industrial Average (^DJI) gained 0.3% or more than 100 points to clinch a record close. The S&P 500 (^GSPC) lost 0.1%, but is only coming down from a fresh record of its own. The tech-heavy Nasdaq Composite (^IXIC) sank about 0.4%, but led the weekly wins overall, gaining 1%, compared to the S&P and the Dow’s 0.6%.

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  • Chip stocks close lower despite earlier gains

    US chip stocks fell Friday after a week of ups and downs. The PHLX Semiconductor Index (^SOX) dropped nearly 1.8%, but remains up 4.3% from last week.

    Micron (MU) fell down around 2.2% after skyrocketing Wednesday on its raised outlook for the upcoming quarter, fueled by AI demand. Micron was the first chipmaker to report financial results this earnings season, and its positive report raised fellow chip stocks such as Advanced Micro Devices (AMD).

    Some negative news for Nvidia (NVDA) came when AI server maker Super Micro Computer (SMCI), one of Nvidia’s biggest customers, saw shares plummet Thursday after reports of a DOJ probe into alleged accounting violations. Bloomberg also reported Friday that the Chinese government is pressuring companies to buy AI chips within its borders rather than from Nvidia. Nvidia fell 2.2%, though analysts said there was no singular reason for the stock’s drop.

    Daniel Newman, CEO of the Futurum Group, noted that semiconductors are a volatile industry. Nvidia stock has also been more volatile since its 10-for-1 stock split in June, Newman noted.

    Bob O’Donnell, founder of TECHnalysis Research, said Nvidia and other chip companies still display strong fundamentals and will likely continue to perform at high levels. Newman noted that there is “strong optimism right now from the top leaders across the industry.”

  • A look at the week ahead

    As a momentous September gives way to October, new jobs numbers will play a huge role in setting expectations for the days ahead.

    The September jobs report, which is scheduled to arrive on Friday, will offer the latest snapshot of the labor market. Should unemployment come in line with expectations, that will likely paint the Fed in a favorable light, as central bankers decided to cut interest rates by 50 basis points. Their efforts to ease back a restrictive monetary policy were designed in part to protect a labor market that has cooled somewhat. If, however, jobs numbers come in worse than expected, the data will offer fuel to critics who have argued that the Fed acted too slowly in cutting rates.

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    Fed Chair Jerome Powell is set to offer remarks ahead of the jobs report, on Monday, as investors look for signals on the central bank’s next move

    On the corporate front, major names scheduled to report include Nike (NKE), Carnival (CCL) and Constellation Brands (STZ).

    Yahoo Finance’s Brent Sanchez has a graphical breakdown of what to watch next week:

  • Zuckerberg faces deposition in AI copyright lawsuit from Sarah Silverman and other authors

    One of the most important debates sparked over the sudden rise of generative AI tools is whether the process of training large language models using existing artistic works is a new form of copyright infringement.

    An array of authors, media outlets and other creative professionals have sued to stop AI companies from using their content on the internet, arguing that their works are being used without compensation in order to advance a new technology and market opportunities.

    Meta CEO Mark Zuckerberg will soon play a direct role in one of the most important lawsuits tackling this subject. Earlier this week a US District Court judge overseeing a suit brought by authors including Sarah Silverman and Ta-Nehisi Coates rejected Meta’s bid to prevent the deposition of Zuckerberg, the Associated Press reported Friday.

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    Meta had tried to block Zuckerberg’s deposition by arguing that he does not have unique knowledge of the company’s AI operations and other Meta employees could provide the same information. Zuckerberg’s participation will likely draw even more attention to the legal matter, similar to his high-profile appearances on Capitol Hill during Congressional hearings on the role of social media in society.

  • New PCE reading supports case for smaller Fed rate cut in November

    Change in core PCE since 2018Change in core PCE since 2018

    Change in core PCE since 2018

    A fresh reading on inflation Friday keeps the Federal Reserve on track to continue cutting interest rates this fall, likely in 25 basis point increments, reports Yahoo Finance’s Jennifer Schonberger.

    The result means that a bigger 50 basis point cut may be hard to justify at the Fed’s next meeting in November, according to some Fed watchers.

    The fact that core inflation year-over-year is holding the level of the last two months, and not dropping, lines up more with a scenario for a smaller cut — lest the job market substantially weaken between now and November.

    “The core year-over-year at 2.7% suggests that another round of 50 basis points needs to come under careful scrutiny unless the labor market suggests weakness,” said Quincy Krosby, chief global strategist for LPL Financial.

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    The consensus among Fed officials outlined last week is for two more 25 basis point rate cuts in 2024.

    Read more here

  • Proposed Biden Chinese car tech ban could cut US auto sales

    Escalating economic tensions between the US and China could have further ramifications for the domestic auto industry.

    On Friday the Commerce Department said a new proposal from the Biden administration to ban connected vehicles from China and key Chinese software in American cars could eat into US auto sales by more than 250,000 vehicles per year, as well as put pressure on prices to rise, Reuters reported.

    US automakers and other companies selling to American consumers others “may be less competitive in the global market because of the relatively higher prices of their vehicles,” the department said.

    As many as 25,841 fewer vehicles would be sold annually if the rule takes effect, the Commerce Department said, adding that $1.5 billion to $2.3 billion in vehicle inputs from Chinese or Russian companies would also be impacted by the proposal.

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    The proposal would also require that American automakers eventually remove certain Chinese software and hardware from vehicles in the US.

  • Dow rises 250 points in afternoon trading

    Stocks traded mixed on Friday after investors were greeted with a fresh inflation report that showed prices continue to cool. In another economics update, consumer sentiment slightly beat expectations in September, with a reading of 70.1 surpassing the 69.4 that economists had projected.

    The S&P 500 (^GSPC) ticked just above the flatline after eking out a third record-high close this week. The Dow Jones Industrial Average (^DJI) gained 0.7%, or more than 250 points while the tech-heavy Nasdaq Composite (^IXIC) sank about 0.3%.

  • Stocks trending on Friday

    Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:

    Costco (COST): Shares of the warehouse retailer sank more than 1% Friday morning after the company posted a mixed fourth-quarter earnings report. Revenue came in at $79.70 billion, falling slightly below the expected $79.96 billion. Meanwhile, US comparable sales, ex-gasoline and currency impacts, were better than analysts were expecting.

    Cassava Sciences (SAVA): Shares of the biopharmaceutical company fell more than 10% after reaching a settlement with the US Securities and Exchange Commission over allegations that it advanced misleading claims about an Alzheimer’s clinical trial. The settlement amounts to over over $40 million

    Bristol Myers Squibb (BMY): The pharmaceutical company rose 3% following news that the FDA approved its schizophrenia drug, making it the first new drug-related approach for patients of the disease in 30 years.

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    Acadia (ACHC): Shares of the behavioral health facilities chain fell roughly 18% Friday after settling with the US Justice Department to resolve allegations it knowingly billed patients for medically unnecessary inpatient behavioral health services. The agreed to pay nearly $20 million.

     

  • Market bets rise for another jumbo rate cut

    The latest encouraging reading of the Fed’s preferred inflation gauge has shifted market forecasts for the likelihood of another 50-basis-point interest-rate cut.

    On Friday, the Personal Consumption Expenditures (PCE) index showed that prices in August increased at a slower pace than expected on a monthly basis. That impacted the debate over the Fed’s next policy rate decision, as central bankers move forward on winding down their tightening cycle.

    After Friday’s inflation release, investors were pricing in a 54% chance of a 50-basis-point rate cut at the Fed’s November policy meeting. That compares with the 50% chance seen a week ago, per the CME FedWatch Tool.

    If inflation continues to show signs of easing, that will likely pressure Fed officials to accelerate their plans to bring interest rates down, since elevated rates threaten the labor market and may lead to an economic slowdown that officials have thus far avoided.

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  • Costco’s stock slips, but its gold bars are selling like hot cakes

    Costco (COST) is slinging a lot of gold bars as prices for the precious metal continue to surge, report Yahoo Finance’s Brooke DiPalma and Brian Sozzi.

    Sales of gold were up “double digits” in the most recent quarter, the wholesale giant’s CFO Gary Millerchip told analysts on an earnings call Thursday evening. Millerchip added that gold was a “meaningful tailwind” to e-commerce sales in the quarter.

    Costco began selling gold bars in the fall of 2023. Wells Fargo analysts have estimated the company is moving bars worth $100 million to $200 million each month.

    On its website, Costco sells its 1 oz gold bar for $2,679.99. You have to be a member to buy the bullion. It’s also non-refundable, and there’s a limit of five total units per membership.

    Despite the hefty sales of gold, Costco’s bread and butter is still hawking products like, well, bread and butter to cost-conscious shoppers.

    Its fiscal fourth quarter, same-store sales growth came in at 6.9%, compared with estimates of 6.4% on Wall Street. E-commerce sales jumped 19.5%, slightly lower than the 19.63% growth rate analysts projected.

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    Read more here

  • Stocks open higher as inflation measure shows more cooling

    Stocks continued to build positive momentum on Friday morning as investors welcomed another update that showed price pressures easing. The encouraging inflation report spurred market expectations that the Federal Reserve may make another jumbo rate cut at its next policy meeting in November.

    The S&P 500 (^GSPC) rose 0.1% after eking out a third record-high close this week. The Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) each gained around 0.2%.

  • Intel stock edges up on news of CHIPS Act funding talks, reports of Arm offer

    Intel (INTC) stock rose 1.8% in early trading Friday after the Financial Times reported that the chipmaker and the US government are on track to finalize $8.5 billion in CHIPS Act funding for the company by the end of the year.

    Separately, Bloomberg reported that Arm Holdings (ARM) expressed interest in buying Intel’s product business.

    The potential offer from Arm, the British chip designer with high-profile partners including Google (GOOG) and Apple (APPL), was rebuked by Intel, unnamed sources told Bloomberg.

    Intel has also reportedly been approached by Qualcomm (QCOM) and investment manager Apollo to buy the company in its entirety. Intel shares have climbed on the news over the past week, but are still down more than 50% from the beginning of the year. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

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    Rival Qualcomm floated a friendly takeover, according to the Wall Street Journal, but such a deal could face blowback from antitrust regulators. Analysts have also cast doubt on whether a Qualcomm takeover would make sense for Qualcomm or Intel financially.

  • Fed’s preferred inflation gauge shows prices increased less than Wall Street expected in August

    The latest reading of the Fed’s preferred inflation gauge showed prices increased at a slower pace than expected on a monthly basis in August.

    The “core” Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy, rose 0.1% from the prior month during August. The reading, which is closely watched by the Federal Reserve, came in below the 0.2% expected by Wall Street and the 0.2% seen in July.

    Over the prior year, prices rose 2.7% in August, matching Wall Street’s expectations and topping the 2.6% rate seen in July.

    Read more here.

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Vallourec SA (VLOUF) Q3 2024 Earnings Call Highlights: Strategic Moves and Financial Resilience …

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6 hours ago

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November 16, 2024

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Vallourec SA (VLOUF) Q3 2024 Earnings Call Highlights: Strategic Moves and Financial Resilience …

  • EBITDA Margin: Maintained a healthy margin similar to previous quarters.

  • Full Year EBITDA Outlook: Reiterated at EUR800 million to EUR850 million.

  • Cash Generation: EUR130 million in Q3, reducing net debt for the eighth consecutive quarter.

  • Net Debt Reduction: Over EUR1.2 billion reduction since 2022.

  • Q3 Group EBITDA Margin: Close to 19%.

  • Tubes Volumes: Reduced to 292 kilotons in Q3.

  • Mine & Forest Segment EBITDA: Expected slightly below EUR100 million for the full year.

  • Net Debt Reduction in Q3: EUR124 million.

  • Full Year Mine Production Expectation: Approximately 5 million tonnes, down from 6 million tonnes.

  • Q3 Cash Flow: Total cash generation of EUR130 million.

Release Date: November 15, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Vallourec SA (VLOUF) maintained a healthy EBITDA margin in Q3 2024, driven by strong international OCTG market performance.

  • The company generated significant cash flow, reducing net debt for the eighth consecutive quarter, totaling a reduction of over EUR1.2 billion since 2022.

  • Vallourec SA (VLOUF) announced its first strategic acquisition in nearly a decade with Thermotite do Brasil, enhancing its position in the offshore line pipe market.

  • The company is progressing well with its optimization program in Brazil, which is expected to significantly contribute to closing the profitability gap.

  • Vallourec SA (VLOUF) plans to announce a dividend proposal for its 2025 AGM, marking the first dividend in 10 years, reflecting strong financial health.

  • The US OCTG market experienced softness, impacting Vallourec SA (VLOUF)’s overall performance.

  • The global iron ore market softened in Q3, leading to lower prices and sales volumes in the Mine & Forest segment.

  • Vallourec SA (VLOUF) lowered its full-year mine production expectations to approximately 5 million tonnes, down from 6 million tonnes.

  • Q3 2024 saw a reduction in tonnage sold and a slight decrease in average realized prices, leading to a year-over-year decline in revenues and EBITDA.

  • The company faces potential challenges from the new tax environment in France, which could impact shareholder remuneration strategies like share buybacks.

Q: Is a share buyback still an option for shareholder remuneration given the new tax environment in France? A: Philippe Guillemot, CEO: While we never exclude any ways to return excess cash to shareholders, the potential tax implications in France make share buybacks less attractive. We plan to return cash to shareholders with a payout ratio of 80% to 100%, starting from Q3. The dividend proposal will be announced in February, based on Q3 cash generation.

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Finance

JSB Financial Inc. Reports Earnings for the Third Quarter and First Nine Months of 2024

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15 hours ago

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November 15, 2024

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JSB Financial Inc. Reports Earnings for the Third Quarter and First Nine Months of 2024

SHEPHERDSTOWN, W. Va., November 15, 2024–(BUSINESS WIRE)–JSB Financial Inc. (OTCPink: JFWV) reported net income of $2.0 million for the quarter ended September 30, 2024, representing an increase of $1.3 million when compared to $643 thousand for the quarter ended September 30, 2023. Basic and diluted earnings per common share were $7.64 and $2.33 for the third quarter of 2024 and 2023, respectively. The third quarter results include the recognition of an interest recovery totaling $1.3 million, a recovery to the allowance for credit losses on loans totaling $252 thousand and a recovery of legal fees totaling $17 thousand on prior nonperforming loans. Excluding the impact of these notable items, pre-tax income of $959 thousand for the third quarter of 2024 was $187 thousand more than the same period in 2023.

Net income for the nine months ended September 30, 2024 totaled $3.4 million, representing an increase of $1.1 million when compared to $2.3 million for the same period in 2023. Basic and diluted earnings per common share were $13.33 and $8.46 for the nine months ended September 30, 2024 and 2023, respectively. Annualized return on average assets and average equity for September 30, 2024 was 0.87% and 17.65%, respectively, and 0.66% and 13.17%, respectively, for September 30, 2023. Excluding the impact of the notable items in the third quarter of 2024, pre-tax income of $2.7 million for the nine months ended September 30, 2024 was $96 thousand lower than the same period in 2023.

“We are pleased with our performance for the third quarter, which includes one-time recoveries on nonperforming loans totaling $1.5 million. Additionally, our team continued to create, deepen and expand our customer relationships which resulted in an increase in total deposits of 10% when compared to the second quarter and 17% year-over-year,” said President and Chief Executive Officer, Cindy Kitner. “During the third quarter, we saw stable loan growth, which was funded through loan maturities and deposit growth, and we continue to have strong credit quality metrics including past dues, nonaccruals, charge offs and nonperforming loans, all of which remained at historically low levels.”

Income Statement Highlights

For the third quarter of 2024, net interest income totaled $4.5 million, representing an increase of $1.5 million, or 50%, from $3.0 million for the third quarter of 2023. For the first nine months of 2024, net interest income totaled $11.0 million, representing an increase of $1.8 million, or 19%, when compared to $9.2 million the same period in 2023. Excluding the interest recovery of $1.3 million, net interest income increased $247 thousand when comparing the third quarter 2024 to the same period in 2023 and increased $508 thousand when comparing the first nine months of 2024 to the same period in 2023. The increase in net interest income for the quarter ended and nine months ended 2024 was attributed to higher loan balances and yields on earning assets, partially offset by higher deposit costs related to the deposit mix and pricing.

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Interest and fees on loans totaled $6.5 million and $4.1 million for the third quarter of 2024 and 2023, respectively, and $16.2 million and $11.4 million for the nine months ended September 30, 2024 and 2023, respectively. Interest and fees on loans increased with organic growth in the loan portfolio, which was primarily led by residential mortgage loan and commercial real estate loan originations. The mix of the loan portfolio shifted slightly with commercial real estate loans representing 23% of total loans as of September 30, 2024, compared to 21% as of December 31, 2023. The yield on earning assets improved when compared to the prior year due primarily to higher interest rates on new loan originations as well as repricing of variable rate loans.

Total interest expense was $3.1 million for the third quarter of 2024, representing an increase of $1.3 million when compared to $1.8 million for the third quarter 2023. For the nine months ended 2024, interest expense totaled $8.1 million, representing an increase of $3.5 million, when compared to $4.6 million for the same period in 2023. This increase was driven by higher deposit balances and costs of interest-bearing deposits as customers have migrated to higher yielding deposit products. With strong deposit growth, the level of noninterest bearing deposits remains at 24% of total deposits.

The net interest margin was 2.90% for the third quarter of 2024 compared to 2.73% the third quarter of 2023.

Noninterest income for the three and nine months ended September 30, 2024 totaled $586 thousand and $1.7 million, respectively, compared to $583 thousand and $1.7 million for the three and nine months ended September 30, 2023, respectively.

Noninterest expense for the three and nine months ended September 30, 2024 totaled $2.9 million and $8.5 million, respectively, compared to $2.8 million and $8.0 million for the three and nine months ended September 30, 2023, respectively. The increase in noninterest expense was primarily related to salaries and employee benefits from increased staffing levels and wages.

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Balance Sheet Highlights

Total assets were $577.3 million as of September 30, 2024, an increase of $76.7 million, or 15.3%, from $500.6 million as of December 31, 2023. Year-over-year total assets increased $78.9 million, or 15.8%, from $498.4 million as of September 30, 2023.

Loans, net of the allowance for credit losses, were $376.7 million as of September 30, 2024, an increase of $28.8 million, or 8.3%, from $347.9 million as of December 31, 2023. Year-over-year net loans grew $34.7 million, or 10.2%, from $342.0 million as of September 30, 2023.

Investment securities, excluding restricted securities, were $114.7 million as of September 30, 2024, $118.7 million as of December 31, 2023 and $117.8 million as of September 30, 2023. Investment securities decreased during the nine months ended September 30, 2024, primarily due to principal repayments and maturities totaling $7.1 million, offset in part by a decrease in the investment portfolio’s unrealized losses on available for sale securities totaling $1.8 million.

Total deposits were $514.7 million as of September 30, 2024, an increase of $88.6 million, or 20.8%, from $426.1 million as of December 31, 2023. Year-over-year total deposits increased $73.6 million, or 16.7%, from $441.1 million as of September 30, 2023. Noninterest bearing deposits represent 24.0% of total deposits as of September 30, 2024, which is down slightly from 26.4% as of December 31, 2023 and 27.4% as of September 30, 2023. During the nine months ended September 30, 2024, noninterest bearing balances increased $11.0 million and interest-bearing balances increased $77.6 million.

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At September 30, 2024, total borrowings decreased $18.1 million since December 31, 2023 and $2.9 million from September 30, 2023. Borrowings through the Federal Reserve’s Bank Term Funding Program (BTFP) totaled $28.0 million as of September 30, 2024. There were no borrowings through FHLB as of September 30, 2024. At September 30, 2024, total liquidity sources exceeded $304 million and included on and off-balance sheet liquidity through cash and cash equivalents; unpledged available for sale securities at fair value; Federal Home Loan Bank (FHLB) and Federal Reserve borrowing capacities; and unsecured correspondent bank lines of credit.

Shareholders’ equity at September 30, 2024 was $29.5 million, representing an increase of $4.6 million, or 18.3% from December 31, 2023. Book value per share of $114.65 at September 30, 2024 increased from $96.93 at December 31, 2023. Year-to-date earnings contributed $3.4 million to the increase in shareholders’ equity. Accumulated other comprehensive loss decreased $1.7 million, which was primarily related to the change in unrealized losses on available for sale securities at September 30, 2024. During the third quarter 2024 the Company declared a regular semi-annual dividend of $1.20 per share payable on September 13, 2024. This dividend was consistent with the previous semi-annual dividend and resulted in an annual dividend of $2.40 per share in 2024, representing an increase of $0.10 per share or 4.3% from $2.30 per share in 2023. Year-over-year shareholders’ equity increased $6.6 million, or 28.9%, from $22.9 million as of September 30, 2023.

All bank regulatory capital ratios remain in excess of applicable regulatory requirements for well-capitalized institutions. The Tier 1 leverage ratio declined to 7.47% from 7.65% at December 31, 2023 and 8.01% at September 30, 2023. The ratio of Common Equity Tier 1 capital and Tier 1 capital to risk weighted assets was 12.45%, 12.40% and 12.85% at September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The total risk-based capital ratio was 13.70%, 13.65% and 14.09% at September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The decline in regulatory capital ratios reflects the impact of continued trend of growth in total assets through the first nine months of 2024. This growth was in part related to management’s decision to increase total assets and maintain a higher level of cash and cash equivalents on the balance sheet. Management conducts regular monitoring of capital planning strategies to support and maintain adequate capital levels.

Asset Quality

As of September 30, 2024, the credit quality of the loan portfolio remained strong with nonaccrual loans totaling $47 thousand, or 0.01% of total loans, compared to $51 thousand, or 0.01% of total loans, at December 31, 2023 and $53 thousand, or 0.02% of total loans, at September 30, 2023. As of September 30, 2024, total past due loans decreased to $349 thousand, or 0.09% of total loans, compared to $385 thousand, or 0.11%, of total loans at December 31, 2023 and decreased when compared to $357 thousand, or 0.10% of total loans, as of September 30, 2023.

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At September 30, 2024 and December 31, 2023, the allowance for credit losses on loans was $4.0 million, or 1.06% of total loans, and $3.8 million, or 1.08% of total loans, respectively. During its assessment of the allowance for credit losses, the Company reviews and addresses credit risk associated with all loan portfolio segments and has appropriately reserved for economic conditions with consideration of management’s prudent underwriting at loan origination and ongoing loan monitoring procedures.

The company recorded net recoveries on loans totaling $237 thousand for the three and nine months ended September 30, 2024, respectively. As a result, the company released provisioning for credit losses totaling $266 thousand and $86 thousand for the three and nine months ended September 30, 2024, respectively. This is compared to a provision expense of $75 thousand and $122 thousand for the three and nine months ended September 30, 2023, respectively. The release of provisioning in 2024 was related to the recovery of a previously charged off loan totaling $252 thousand and continued stability in the economic environment and the credit quality of the loan portfolio.

Third Quarter 2024 Compared to Second Quarter of 2024

Compared to the quarter ended June 30, 2024, net income increased $1.2 million primarily due to higher revenue and lower provision for credit losses. Excluding the notable items in the third quarter of 2024, pretax income decreased by $6 thousand, or 0.6%, compared to the same period in 2023.

Net interest income increased by $1.3 million, or 39%, from the second quarter of 2024. Excluding the notable item, net interest income increased $11 thousand, or 0.3%, compared to the quarter ended June 30, 2024. This slight increase to net interest income shows the continued improvement in both the yield and mix of earning assets, while the Company also continued to experience pricing pressures on deposits. Management is actively monitoring the interest rates and the mix of deposits and wholesale funding to control funding costs.

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The Company recorded a release of provisioning for credit losses of $266 thousand for the third quarter of 2024, compared to a provision for credit losses expense of $60 thousand for the second quarter of 2024. This change was primarily driven by similar factors as the year-over-year changes stated above.

Noninterest income for the three months ended September 30, 2024 totaled $586 thousand, compared to $582 thousand for the three months ended June 30, 2024. Noninterest expense for the three months ended September 30, 2024 totaled $2.9 million, compared to $2.8 million for the three months ended June 30, 2024.

When comparing September 30, 2024 to June 30, 2024, total assets increased $35.2 million, or 6.5%, loans, net of the allowance for credit losses, increased by $2.8 million, or 0.7%, total deposits increased $46.1 million, or 9.8%, and shareholders’ equity increased $3.6, or 14.0%.

About JSB Financial Inc.

JSB Financial Inc. (OTCPink: JFWV) is the holding company for Jefferson Security Bank, an independent community bank operating six banking offices located in Berkeley County and Jefferson County, West Virginia and Washington County, Maryland. Founded in 1869, Jefferson Security Bank serves individuals, businesses, municipalities and community organizations through a comprehensive suite of banking services delivered by an exceptional team who put customers first. Jefferson Security Bank has received industry recognition by American Banker magazine five years in a row. Most recently, as a Top 100 Community Bank in 2024 and prior as a Top 200 Community Bank for four consecutive years. Operating for over 155 years, Jefferson Security Bank is the oldest, independent, locally owned and managed bank in West Virginia. Visit www.jsb.bank for more information.

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Offices:

105 East Washington Street, Shepherdstown, WV (304-876-9000)
7994 Martinsburg Pike, Shepherdstown, WV (304-876-2800)
873 East Washington Street, Suite 100, Charles Town, WV (304-725-9752)
277 Mineral Drive, Suite 1, Inwood, WV (304-229-6000)
1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900)
103 West Main Street, Sharpsburg, MD (301-432-3900)

View source version on businesswire.com: https://www.businesswire.com/news/home/20241115698441/en/

Contacts

Jenna Kesecker, CPA, Executive Vice President
and Chief Financial Officer
304-876-9016

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Finance

Interested In Manulife Financial’s (TSE:MFC) Upcoming CA$0.40 Dividend? You Have Four Days Left

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1 day ago

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November 15, 2024

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Interested In Manulife Financial’s (TSE:MFC) Upcoming CAalt=

Regular readers will know that we love our dividends at Simply Wall St, which is why it’s exciting to see Manulife Financial Corporation (TSE:MFC) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company’s books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Manulife Financial investors that purchase the stock on or after the 20th of November will not receive the dividend, which will be paid on the 19th of December.

The company’s next dividend payment will be CA$0.40 per share. Last year, in total, the company distributed CA$1.60 to shareholders. Looking at the last 12 months of distributions, Manulife Financial has a trailing yield of approximately 3.5% on its current stock price of CA$46.23. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Manulife Financial can afford its dividend, and if the dividend could grow.

View our latest analysis for Manulife Financial

If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Manulife Financial paid out more than half (55%) of its earnings last year, which is a regular payout ratio for most companies.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.

TSX:MFC Historic Dividend November 15th 2024

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we’re encouraged by the steady growth at Manulife Financial, with earnings per share up 4.5% on average over the last five years.

Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Manulife Financial has increased its dividend at approximately 12% a year on average. It’s encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

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