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8-K - FORM 8-K - JUNIATA VALLEY FINANCIAL CORP | c11448e8vk.htm |
EX-99.2 - EXHIBIT 99.2 - JUNIATA VALLEY FINANCIAL CORP | c11448exv99w2.htm |
Exhibit 99.1
PRESS RELEASE
Juniata Valley Financial Corp. Announces Increase in Quarterly Earnings Over Previous
Periods and Declares Dividend
Periods and Declares Dividend
Mifflintown, PA January 21, 2011 Marcie A. Barber, President and Chief Executive Officer of
Juniata Valley Financial Corp. (OTC BB: JUVF), announced that net income for the fourth quarter of
2010 was $1,304,000, exceeding net income in both the immediate preceding quarter and in the same
quarter in the previous year. As compared to both previous quarters, Juniata Valleys 2010 final
quarter earnings resulted in increases in key performance ratios, including return on average
assets (ROA), return on average equity (ROE) and earnings per share (EPS), as shown in the table
below.
Quarter Ended | ||||||||||||||||||||
December 31, 2010 | September 30, 2010 | December 31, 2009 | ||||||||||||||||||
Results | Results | % Increase | Results | % Increase | ||||||||||||||||
Net Income |
$ | 1,304,000 | $ | 1,285,000 | 1.5 | % | $ | 1,243,000 | 4.9 | % | ||||||||||
ROA |
1.20 | % | 1.16 | % | 3.4 | % | 1.14 | % | 5.3 | % | ||||||||||
ROE |
10.30 | % | 10.15 | % | 1.5 | % | 9.84 | % | 4.7 | % | ||||||||||
EPS (basic and
fully diluted) |
$ | 0.31 | $ | 0.30 | 3.3 | % | $ | 0.29 | 6.9 | % |
The increase in net income in the fourth quarter of 2010 versus the third quarter of 2010 primarily
resulted from a decrease in securities impairment charges, as no other-than-temporary impairment
was recognized in the fourth quarter of 2010 compared to a $40,000 charge during the third quarter
of 2010, and a decrease in noninterest expense, resulting primarily from a decrease in core
processing costs of approximately $40,000, due to a change in core processing providers mid-year in
2010. Partially offsetting these items was an increase in the provision for loan losses of $34,000
for the fourth quarter of 2010 in comparison to the third quarter of 2010. Net interest income was
relatively unchanged in the fourth quarter as compared to the previous quarter, with a fully
tax-equivalent net interest margin of 4.12%.
Fourth quarter 2010 net income was higher by $61,000, or 4.9%, in comparison to net income for the
fourth quarter of 2009. Net interest income in the most recent quarter exceeded the level during
the prior year period by $24,000, and the provision for loan losses was $146,000 lower in the
fourth quarter of 2010 than in the same period in 2009. Partially offsetting these items were a
decrease in non-interest income of $117,000 in the fourth quarter of 2010 compared to the same
quarter in 2009, primarily due to a reduction in fee income from deposit service fees resulting
from recent changes in consumer regulation and a decline in fee income from trust services and the
sale of non-deposit products of $95,000 when comparing the two periods. Non-interest expense in the
recent quarter was essentially unchanged when compared to same period during the prior year.
For the year 2010, net income was $4,915,000, a reduction of $191,000 in comparison to the same
period during 2009. Contributing to this reduction during 2010 was an increase in the provision for
loan losses of $114,000 and a reduction in revenue from deposit services of $245,000. Items
included in 2009 affecting comparability to 2010 include a special FDIC
assessment of $194,000 included in non-interest expense and other-than-temporary impairment charges
of $226,000, partially offset by deferred income from insurance sales of $323,000, which was
included in non-interest income. Return on average assets was 1.12% and 1.17% and return on average
equity was 9.70% and 10.31%, for 2010 and 2009, respectively.
For the year ended December 31, 2010, basic and diluted earnings per share were $1.14 as compared
to $1.18 in the same period in 2009.
Ms. Barber also announced that, on January 18, Juniata Valley Financial Corp.s Board of Directors
declared a cash dividend of $0.21 per share for the first quarter of 2011, payable on March 1 to
shareholders of record on February 15, an increase of 5% over 2010s first quarter dividend. She
stated that Juniata Valley Bank continues to deliver strong financial performance despite economic
and regulatory challenges; we are pleased to share our success with our valued shareholders.
Management considers subsequent events occurring after the balance sheet 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 companys
consolidated financial statements when filed with the Securities and Exchange Commission (SEC).
Accordingly, the financial information in this announcement is subject to change.
The Juniata Valley Bank, the principal subsidiary of Juniata Valley Financial Corp., is
headquartered in Mifflintown, Pennsylvania, with twelve community offices located in Juniata,
Mifflin, Perry and Huntingdon Counties. In addition, Juniata Valley owns 39.16% of the First
National Bank of Liverpool, which it carries under the equity method of accounting. 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 over the counter under the
symbol JUVF.OB.
*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 Valley is making forward-looking statements. Such
information is based on Juniata Valleys 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. Juniata Valley undertakes no obligation to
publicly update or revise forward looking information, whether as a result of new or updated
information, future events, or otherwise. Many factors could affect future financial results
including, without limitation, changes in interest rates and their impact on the level of deposits,
loan demand and value of loan collateral, increased competition from other financial institutions,
market value deterioration in the financial services sector, FDIC deposit insurance premiums,
governmental monetary policy, legislation and changes in banking regulations, risks associated with
the effect of opening a new branch, the ability to control costs and expenses, and general economic
conditions.
For a more complete discussion of certain risks and uncertainties affecting Juniata Valley, please
see the sections entitled Risk Factors and Managements Discussion and Analysis of Financial
Condition and Results of Operations Forward-Looking Statements set forth in the Juniata
Valleys filings with the Securities and Exchange Commission.