Juniata Valley Financial Corp. (OTCQX:JUVF), based in Mifflintown, PA, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a net income of $1.5 million for the fourth quarter, a slight decrease from $1.7 million in the same period last year. This translates to earnings per share of $0.30, down from $0.33 in the fourth quarter of 2023. For the entire year, net income was $6.2 million, compared to $6.6 million in 2023, with basic and diluted earnings per share at $1.25 and $1.24 respectively, down from $1.32 and $1.31.
Marcie A. Barber, President and CEO of Juniata Valley Financial Corp., highlighted that recent Federal Reserve rate decreases contributed to a reversal of net interest margin compression observed in previous quarters. The net interest margin increased by twelve basis points compared to last year’s fourth quarter, reflecting successful strategies to enhance non-interest income, which saw substantial growth in both the last quarter and throughout 2024.
Despite the decline in fourth-quarter net income attributed to one-time noninterest expenses, Barber expressed optimism about the company’s credit quality, with nonperforming loans at just 0.1% of the total portfolio and delinquent loans at 0.4%. Looking ahead to 2025, Barber emphasized plans for accelerated loan growth while maintaining strong credit quality through efforts to expand loan and deposit relationships beyond existing branches.
For the year ending December 31, 2024, Juniata reported a return on average assets of 0.72%, down from 0.79% in 2023, and a return on average equity of 14.19%, compared to 18.20% the previous year. Net interest income rose slightly to $22.9 million from $22.7 million in 2023, supported by a $15.7 million increase in average interest-earning assets.
The company experienced a notable increase in average loans by 6.9%, although this was partially offset by a decline in investment securities as funds were redirected towards loan growth rather than reinvestment into securities.
In terms of non-interest income, Juniata reported an increase to $5.8 million for the year, up from $5.3 million in 2023, a rise attributed mainly to higher customer service fees and fees from loan activity. Conversely, non-interest expenses rose to $21 million from $19.9 million, primarily due to increased employee compensation and occupancy expenses linked to branch lease adjustments.
For the fourth quarter alone, annualized return on average assets was reported at 0.70%, while annualized return on average equity was at 12.79%. Net interest income for this period was $5.8 million compared to $5.6 million a year earlier. The company also recorded a provision for credit losses of $63,000 for the quarter versus $89,000 in Q4 2023.
Total assets as of December 31, 2024, were reported at $848.9 million, a decrease of 2.5% from the previous year, while Juniata maintains a robust liquidity position with significant borrowing capacity available.
On January 21, 2025, the Board declared a cash dividend of $0.22 per share for shareholders of record as of February 14, payable on February 28. Juniata Valley Bank operates fifteen community offices across several counties and continues to focus on enhancing its service offerings while navigating market challenges effectively.
