From staff reports
MIFFLINTOWN - Juniata Valley Financial Corp. has announced its earnings and declared a third quarter dividend, according to a recent press release from the financial institution.
JVFC President and Chief Executive Officer Marcie A. Barber said that net income for the nine months ended Sept. 30, 2011 was $3,544,000, in comparison to $3,611,000 for the same period in 2010. Basic earnings per share were $0.84 for each period.
"Despite a challenging and uncertain economy, JVB is delivering a consistently solid return to our shareholders," Barber said.
Total assets increased by 4.4 percent, to $454.8 million, from Dec. 31, 2010, to Sept. 30, 2011, with this asset growth funded by deposit growth of 4.9 percent. The nine-month results were primarily attributed to the change in average loan to deposit ratio from 81.7 percent in 2010 to 74.0 percent in 2011, resulting in a reduction in the net interest margin, the release states.
Juniata Valley's 2011 third quarter performance, in terms of net income of $1,214,000, increased by 11.3 percent in comparison to net income for the second quarter of 2011. Earnings per share increased by11.5 percent in the third quarter of 2011 as compared to the previous calendar quarter. Net interest income in the most recent quarter was $51,000 lower than in the previous quarter due primarily to lower average loan balances, according to the release.
The provision for loan losses was $56,000 lower in the third quarter of 2011 than in the second quarter of 2011 and the ratio of the allowance to total loans remained at 0.99 percent at the end of the two periods. Non-interest income in the third quarter of 2011 increased by $18,000, or 1.8 percent, compared to non-interest income in the previous quarter, primarily due to increased trust fee income. Non-interest expense was $176,000 lower in the third quarter of 2011 compared to the second quarter of 2011 due to lower employee compensation and benefits expense, the release states.
As compared to the same quarter one year ago, net income in the third quarter of 2011 decreased 5.5 percent. The decrease in net income in the third quarter of 2011 versus the third quarter of 2010 primarily resulted from a decrease in net interest income, related to a decline in outstanding loans, partially offset by an increase in non-interest income, according to the release.
Barber also announced that on Oct. 18, 2011, Juniata Valley Financial Corp.'s Board of Directors declared a cash dividend of $0.22 per share for the fourth quarter of 2011, payable on Dec. 1 to shareholders of record on Nov. 15 - an increase of 4.8 percent over 2010's third quarter dividend.
According to the release, 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 company's 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, with 12 community offices located in Juniata, Mifflin, Perry and Huntingdon counties. In addition, Juniata Valley owns 39.16 percent 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.
