U.S. Markets open in 1 hr 43 mins
  • S&P Futures

    4,541.25
    +17.00 (+0.38%)
     
  • Dow Futures

    35,035.00
    +125.00 (+0.36%)
     
  • Nasdaq Futures

    15,135.75
    +102.25 (+0.68%)
     
  • Russell 2000 Futures

    2,066.50
    +7.30 (+0.35%)
     
  • Crude Oil

    86.50
    -0.46 (-0.53%)
     
  • Gold

    1,838.50
    -4.70 (-0.25%)
     
  • Silver

    24.21
    -0.02 (-0.09%)
     
  • EUR/USD

    1.1342
    -0.0005 (-0.0454%)
     
  • 10-Yr Bond

    1.8270
    0.0000 (0.00%)
     
  • Vix

    23.09
    +0.30 (+1.32%)
     
  • GBP/USD

    1.3615
    +0.0003 (+0.0232%)
     
  • USD/JPY

    114.2650
    -0.0880 (-0.0770%)
     
  • BTC-USD

    41,980.21
    -53.91 (-0.13%)
     
  • CMC Crypto 200

    996.94
    +2.19 (+0.22%)
     
  • FTSE 100

    7,584.74
    -4.92 (-0.06%)
     
  • Nikkei 225

    27,772.93
    +305.70 (+1.11%)
     

Juniata Valley Financial Corp. Announces Results for the Quarter Ended March 31, 2021

  • Oops!
    Something went wrong.
    Please try again later.
·11 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Mifflintown, PA, April 27, 2021 (GLOBE NEWSWIRE) --

Juniata Valley Financial Corp. (OTC Pink: JUVF) (“Juniata”), announced net income for the quarter ended March 31, 2021 of $1.6 million, an increase of 57.5%, compared to net income of $1.0 million for the quarter ended March 31, 2020. Earnings per share, basic and diluted, for the three months ended March 31, 2021 was $0.33, 65.0% higher than the $0.20 reported for the three months ended March 31, 2020.

President’s Message

President and Chief Executive Officer, Marcie A. Barber stated, “We are very pleased to deliver strong financial performance as we begin a new fiscal year. These results are indicative of our resolve to responsibly navigate changes in our challenging economic environment”.

Paycheck Protection Program (“PPP”)

Juniata continues to participate in the PPP through the Small Business Administration (“SBA”), which provides forgiveness up to the full principal amount of qualifying loans. Juniata funded 508 PPP loans, totaling $32.1 million, during the first round of the program in 2020. As of March 31, 2021, 177 of these first round PPP loans, totaling $13.0 million, had been forgiven.

On December 27, 2020, the 2021 Consolidated Appropriations Act (“CAA”) was signed into law. The CAA reopened the PPP to qualifying new and existing borrowers. As of March 31, 2021, Juniata funded an additional 261 PPP loans, totaling $17.0 million, through the second round of PPP funding.

Financial Results

Annualized return on average assets for the three months ended March 31, 2021 was 0.82%, compared to 0.62% for the three months ended March 31, 2020. Annualized return on average equity for the three months ended March 31, 2021 was 8.68%, compared to 5.54% for the three months ended March 31, 2020.

Net interest income was $4.9 million for the first quarter of 2021 compared to $5.0 million for the first quarter of 2020. Average earning assets increased 11.5%, to $740.9 million, during the three months ended March 31, 2021 compared to the same period in 2020, predominantly due to increases of $88.5 million in average investment securities and $39.6 million in average loans, the latter resulting from both organic loan growth and PPP loan funding. The yield on earning assets declined 87 basis points, to 3.15%, in the first quarter of 2021 compared to same period last year, while the cost to fund interest earning assets with interest bearing liabilities decreased 36 basis points, to 0.65%. During the three months ended March 31, 2021, average interest bearing liabilities increased by $97.7 million compared to the comparable 2020 period, mainly due to growth in interest-bearing deposits driven by deposits of government stimulus payments and decreased consumer spending during the pandemic. Both the yields on earning assets and cost of funds were affected by the ongoing low interest rate environment that commenced with the 150 basis point decline in the prime rate and federal funds target range in March 2020. The net interest margin, on a fully tax equivalent basis, decreased from 3.32% during the three months ended March 31, 2020 to 2.71% during the three months ended March 31, 2021.

Juniata continued to experience favorable asset quality trends and net recoveries during the first quarter of 2021. Only one loan, in the amount of $5.0 million, placed on payment deferral remained in deferment as of March 31, 2021, while all other loans previously placed in deferment resumed contractual debt service. Juniata applied elevated qualitative risk factors to all loan segments in the loan portfolio in its allowance for loan loss analysis in the first quarter of 2021 due to the remaining uncertainty as to the strength of the economy once it fully reopens and the ability of borrowers no longer on payment deferral to continue making payments; however, due to the positive trends noted above and sustained performance of the loan portfolio, the analysis resulted in a provision credit of $79,000 in the first quarter of 2021 compared to a provision expense of $356,000 recorded in the first quarter of 2020.

Non-interest income in the first quarter of 2021 was $1.3 million compared to $1.0 million in the first quarter of 2020, an increase of 28.0%. Most significantly impacting non-interest income in the comparative three month periods was the increase in the value of equity securities of $0.3 million in the first quarter of 2021 compared to the first quarter of 2020, as well as an increase of $0.1 million in debit card fee income. Partially offsetting these increases was a $0.1 million decrease in customer service fees in the first quarter of 2021 compared to the comparable 2020 period.

Non-interest expense was $4.6 million in the three months ended March 31, 2021 compared to $4.8 million in the three months ended March 31, 2020, a decline of 3.6%. Most significantly impacting non-interest expense in the comparative three month periods was a $0.2 million decline in employee benefits expense due to lower medical claims expenses, as well as a decrease in equipment expense and a recorded gain on other real estate owned in the first quarter of 2021 compared to the first quarter of 2020. Offsetting these declines during the three months ended March 31, 2021 compared to the comparative 2020 period was an increase in data processing expense, predominantly due to the launch of Juniata’s new online deposit account opening platform in late 2020.

Income tax expense of $0.1 million was recorded in the first quarter of 2021 compared to an income tax benefit of $0.2 million recorded in the first quarter of 2020, primarily due to higher taxable income recorded in the 2021 period.

Financial Condition

Total assets as of March 31, 2021 were $805.6 million, an increase of $11.9 million, compared to total assets of $793.7 million on December 31, 2020. Comparing asset balances on March 31, 2021 and December 31, 2020, cash and cash equivalents decreased by $19.6 million as Juniata used excess cash in the first quarter of 2021 to repay the remaining FRB advances from the Paycheck Protection Program Liquidity Fund. Debt securities available for sale and total loans increased by $14.7 million and $14.3 million, respectively, as of March 31, 2021 compared to December 31, 2020. Over the same period, deposits increased by $46.6 million, with growth in both non-interest and interest bearing demand deposits, mainly due to additional government stimulus payments and PPP funds on deposit. Shareholders’ equity decreased by $4.0 million when comparing March 31, 2021 to December 31, 2020, primarily due to a decline in the fair value of debt securities between the two periods.

Subsequent Event

On April 20, 2021, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on May 17, 2021, payable on June 1, 2021.

Management considers subsequent events occurring after the statement of condition date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission. Accordingly, the financial information in this release is subject to change.


The Juniata Valley Bank, the principal subsidiary of Juniata Valley Financial Corp., is headquartered in Mifflintown, Pennsylvania, with nineteen community offices located in Juniata, Mifflin, Perry, Huntingdon, McKean and Potter Counties. More information regarding Juniata Valley Financial Corp. and The Juniata Valley Bank can be found online at www.JVBonline.com. Juniata Valley Financial Corp. trades through the Pink Open Market under the symbol JUVF.

Forward-Looking Information
*This press release may contain “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995. When words such as “believes”, “expects”, “anticipates” or similar expressions are used in this release, Juniata is making forward-looking statements. Such information is based on Juniata’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events or results. Such statements involve potential risks and uncertainties and, accordingly, actual results may differ materially from this forward-looking information. Many factors could affect future financial results. Juniata undertakes no obligation to publicly update or revise forward looking information, whether as a result of new or updated information, future events, or otherwise. For a more complete discussion of certain risks and uncertainties affecting Juniata, please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” set forth in the Juniata’s filings with the Securities and Exchange Commission. In addition, the COVID-19 pandemic is having an adverse impact on Juniata, its customers and the communities it serves and may adversely affect Juniata’s business, results of operations and financial condition for an indefinite period of time. The Annual Report on Form 10-K for the year ended December 31, 2020 addressed risks and uncertainties associated with the COVID-19 pandemic.


Financial Statements

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Financial Condition

(Dollars in thousands, except share data)

(Unaudited)

March 31, 2021

December 31, 2020

ASSETS

Cash and due from banks

$

11,533

$

11,868

Interest bearing deposits with banks

460

19,753

Federal funds sold

10,000

10,000

Cash and cash equivalents

21,993

41,621

Interest bearing time deposits with banks

735

735

Equity securities

1,183

1,091

Debt securities available for sale

301,076

286,415

Restricted investment in bank stock

3,374

3,423

Total loans

437,007

422,661

Less: Allowance for loan losses

(4,056

)

(4,094

)

Total loans, net of allowance for loan losses

432,951

418,567

Premises and equipment, net

8,686

8,808

Other real estate owned

110

Bank owned life insurance and annuities

16,628

16,568

Investment in low income housing partnerships

2,905

3,105

Core deposit and other intangible assets

225

241

Goodwill

9,047

9,047

Mortgage servicing rights

147

158

Accrued interest receivable and other assets

6,573

3,939

Total assets

$

805,633

$

793,718

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest bearing

$

183,437

$

168,115

Interest bearing

486,023

454,751

Total deposits

669,460

622,866

Short-term borrowings and repurchase agreements

22,622

24,750

Federal Reserve Bank ("FRB") advances

27,955

Long-term debt

35,000

35,000

Other interest bearing liabilities

1,557

1,584

Accrued interest payable and other liabilities

4,420

4,966

Total liabilities

733,059

717,121

Commitments and contingent liabilities

Stockholders' Equity:

Preferred stock, no par value: Authorized - 500,000 shares, none issued

Common stock, par value $1.00 per share: Authorized 20,000,000 shares Issued - 5,151,279 shares at March 31, 2021; 5,151,279 shares at December 31, 2020 Outstanding - 5,006,695 shares at March 31, 2021; 5,025,441 shares at December 31, 2020

5,151

5,151

Surplus

24,893

25,011

Retained earnings

45,629

45,096

Accumulated other comprehensive (loss) income

(590

)

3,518

Cost of common stock in Treasury: 144,584 shares at March 31, 2021; 125,838 shares at December 31, 2020

(2,509

)

(2,179

)

Total stockholders' equity

72,574

76,597

Total liabilities and stockholders' equity

$

805,633

$

793,718


Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Income (Unaudited)

Three Months Ended

(Dollars in thousands, except share and per share data)

March 31,

2021

2020

Interest income:

Loans, including fees

$

4,777

$

4,878

Taxable securities

1,006

1,173

Tax-exempt securities

38

23

Other interest income

5

55

Total interest income

5,826

6,129

Interest expense:

Deposits

619

830

Short-term borrowings and repurchase agreements

32

8

FRB advances

18

Long-term debt

212

283

Other interest bearing liabilities

2

7

Total interest expense

883

1,128

Net interest income

4,943

5,001

Provision for loan losses

(79

)

356

Net interest income after provision for loan losses

5,022

4,645

Non-interest income:

Customer service fees

325

415

Debit card fee income

413

324

Earnings on bank-owned life insurance and annuities

54

64

Trust fees

112

113

Commissions from sales of non-deposit products

80

74

Fees derived from loan activity

104

67

Mortgage banking income

8

16

Gain (loss) on sales and calls of securities

4

11

Change in value of equity securities

93

(172

)

Other non-interest income

79

82

Total non-interest income

1,272

994

Non-interest expense:

Employee compensation expense

1,969

2,003

Employee benefits

545

728

Occupancy

330

314

Equipment

189

234

Data processing expense

583

501

Professional fees

188

173

Taxes, other than income

124

138

FDIC Insurance premiums

81

40

Gain on other real estate owned

(49

)

Amortization of intangible assets

16

19

Amortization of investment in low-income housing partnerships

200

200

Other non-interest expense

412

410

Total non-interest expense

4,588

4,760

Income before income taxes

1,706

879

Income tax provision (benefit)

71

(159

)

Net income

$

1,635

$

1,038

Earnings per share

Basic

$

0.33

$

0.20

Diluted

$

0.33

$

0.20

CONTACT: JoAnn McMinn Email: joann.mcminn@jvbonline.com Phone: (717) 436-3206