-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PXiqx/Q/IfnMB1nuJb4UmPPlbTRmuEpNBPwjCbBOXbUYFyFoDluAgxKNsL6Z0j2H nLtXSO33HMmaYrqZRs4jrg== 0000714712-95-000014.txt : 19951119 0000714712-95-000014.hdr.sgml : 19951119 ACCESSION NUMBER: 0000714712-95-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: JUNIATA VALLEY FINANCIAL CORP CENTRAL INDEX KEY: 0000714712 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 232235254 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13232 FILM NUMBER: 95589904 BUSINESS ADDRESS: STREET 1: BRIDGE & MAIN ST STREET 2: P O BOX 66 CITY: MIFFLINTOWN STATE: PA ZIP: 17059-0066 BUSINESS PHONE: 7174368211 MAIL ADDRESS: STREET 1: BRIDGE AND MAIN STREETS STREET 2: P O BOX 66 CITY: MIFFLINTOWN STATE: PA ZIP: 17059-0066 10-Q 1 2. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY --------------------------------------------- CONSOLIDATED BALANCE SHEETS --------------------------- September 30, December 31, 1995 1994 ---------- ---------- (In thousands) (Unaudited) ASSETS: Cash and due from banks $ 5,415 $ 5,978 Interest-bearing deposits with banks 20 7 Federal funds Sold 4,290 - --------- ---------- Total cash and cash equivalents 9,725 5,985 Securities available for sale 19,369 13,057 Securities held to maturity, fair value of $46,034 and $42,728 respectively 45,991 44,157 Loans, receivable net of unearned discount of $4,404 and $4,095, respectively 121,951 123,191 Less: Allowance for loan losses 1,606 1,523 --------- ---------- Net Loans receivable 120,345 121,668 Bank premises and equipment, net 1,677 1,681 Accrued interest receivable and other assets 4,300 3,628 --------- ---------- TOTAL ASSETS $ 201,407 $ 190,176 ========= ========== LIABILITIES AND STOCKHOLDERS' EQUITY: Non-interest bearing deposits $ 19,363 $ 18,971 Interest bearing deposits 154,639 146,180 --------- ---------- Total deposits 174,002 165,151 Accrued interest and other liabilities 3,156 2,591 --------- ---------- Total liabilities 177,158 167,742 --------- ---------- Stockholders' Equity: Preferred stock, no par value, authorized 500,000 shares, no shares issued or outstanding - - Common stock, par value $1.00, per share; authorized 2,000,000 shares; issued and outstanding 890,692 shares 891 891 Capital surplus 14,956 14,956 Retained earnings 8,275 6,749 Net unrealized appreciation (depreciation) on securities available for sale, net of taxes of $65 and ($84) 127 (162) --------- ---------- Total stockholders' equity 24,249 22,434 --------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY $ 201,407 $ 190,176 ========= ========== 3. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Quarter Ended For Nine Months Ended ---------------------- -------------------- Sept 30, Sept 30, Sept 30, Sept 30, 1995 1994 1995 1994 ---------- --------- --------- --------- (In thousands, except per share amount) INTEREST INCOME: Loans receivable $ 2,902 $ 2,675 $ 8,509 $ 7,792 Taxable securities 631 565 1,534 1,475 Tax-exempt securities 268 298 934 1,051 Other 73 19 176 112 ---------- ---------- ---------- --------- Total interest income 3,874 3,557 11,153 10,430 INTEREST EXPENSE ON DEPOSITS 1,843 1,469 5,094 4,312 ---------- ---------- ---------- --------- Net interest income 2,031 2,088 6,059 6,118 PROVISION FOR LOAN LOSSES 45 45 135 135 ---------- ---------- ---------- --------- Net interest income, after provision for loan losses 1,986 2,043 5,924 5,983 ---------- ---------- ---------- --------- OTHER INCOME: Trust department 50 45 130 110 Customer service fees 56 56 166 164 Other 53 55 138 129 ---------- ---------- ---------- --------- Total other income 159 156 434 403 ---------- ---------- ---------- --------- OTHER EXPENSES: Salaries and wages 522 505 1,578 1,528 Employee benefits 145 138 455 426 Occupancy 84 80 225 242 Equipment 81 91 227 296 Federal deposit insurance (37) 95 181 281 Director compensation 104 81 305 296 Taxes, other than income 54 48 160 146 Other 247 253 791 690 ---------- ---------- ---------- -------- Total other expenses 1,200 1,291 3,922 3,905 ---------- ---------- ---------- -------- INCOME BEFORE INCOME TAXES 945 908 2,436 2,481 FEDERAL INCOME TAXES 184 216 536 585 ---------- ---------- ---------- --------- Net income $ 761 $ 692 $ 1,900 $ 1,896 ========== ========== ========== ========== PER SHARE DATA: Net income $ .85 $ .78 $ 2.13 $ 2.13 ========== ========== ========== ========== Weighted average number of shares outstanding 890,692 890,692 890,692 890,692 ======= ======= ======= ======= 4. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 (Unaudited) Unrealized Appreciation (Depreciation) on Securities Common Capital Retained Available Stock Surplus Earnings For Sale Total ---------- ----------- ----------- ------------- ----------- (In thousands) BALANCE, DECEMBER 31, 1994 $ 891 $ 14,956 $ 6,749 (162)$ 22,434 Net income for the nine months ended September 30, 1995 - - 1,900 - 1,900 Cash Dividend, $.42 per share - - (374) - (374) Net change in unrealized appreciation on securities available for sale, net of taxes - - - 289 289 ---------- ----------- ----------- ------------- ----------- Balance September 30, 1995 $ 891 $ 14,956 $ 8,275 $ 127 $ 24,249 ========== =========== =========== ============= =========== 5. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Increase (Decrease) in Cash and Cash Equivalents For the Nine Months Ended ------------------------- Sept 30, Sept 30, 1995 1994 ------------ ----------- (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,900 $ 1,896 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 135 135 Provision for depreciation and amortization 134 136 Deferred directors' fees and supplemental retirement plan expense 238 220 Payment of deferred compensation (99) (93) Deferred income taxes (66) (50) (Increase) decrease in accrued interest receivable and other assets (633) (428) Increase (decrease) in interest payable and other liabilities 305 148 ------------ ----------- Net cash provided by operating activities 1,914 1,964 ------------ ----------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of securities available for sale (10,278) (1,998) Proceeds from maturities of and principal repayments on securities available for sale 4,402 2,690 Purchases of securities held to maturity (6,577) (14,693) Proceeds from maturities of and principal repayments on securities held to maturity 4,744 13,342 Net (increase) decrease in loans receivable 1,188 (5,712) Purchases of bank premises and equipment (130) (63) ------------ ----------- Net cash provided by (used in) investing activities (6,651) (6,434) ____________ ____________ CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in deposits 8,851 578 Cash Dividends (374) (371) Net increase in short term borrowings - 250 ____________ ____________ Net cash provided by (used in) financing activities 8,477 457 ------------ ---------- Increase (decrease) in cash and cash equivalents 3,740 (4,013) CASH AND CASH EQUIVALENTS: Beginning 5,985 8,968 ------------ ----------- Ending $ 9,725 $ 4,955 ============ =========== CASH PAYMENTS FOR: Interest $ 4,926 $ 4,296 ============ ============ Income taxes $ 560 $ 639 ============ ============ 6. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY NOTES TO THE INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 1995 NOTE A - Basis of Presentation The financial information includes the accounts of the Juniata Valley Financial Corp. and its wholly owned subsidiary, The Juniata Valley Bank. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included. Operating results for the nine-month period ended September 30, 1995, are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the consolidated financial statements and footnotes thereto included in Juniata Valley Financial Corp. annual report on Form 10-K for the year ended December 31, 1994. 7. Management's Discussion and Analysis Financial Condition: Total assets of Juniata Valley Financial Corp. reached $201,407,000 as of September 30, 1995, an increase of $11,231,000 or 5.91% from December 31, 1994. An increase in securities available for sale of $6,312,000 and in cash and cash equivalents of $3,740,000 from December 31, 1994, to September 30, 1995 were the primary reasons for the growth in assets. The cash provided by financing activities of $8,477,000 and by operating activities of $1,914,000 for the period ended September 30, 1995, were used to purchase securities which exceeded repayments and maturities by $7,709,000. The remaining cash increase was attributed to the increase in cash and cash equivalents. Net loans outstanding declined by $1,188,000 since the beginning of the year. Additions to bank premises and equipment were $130,000. There are no material loans classified for regulatory purposes as loss, doubtful, substandard or special mention which management expects to significantly impact future operating results, liquidity or capital resources. Additionally, management is not aware of any information which would give serious doubt as to the ability of its borrowers to substantially comply with their loan repayment terms. The Corporation's problem loans (i.e., 90 days past due and restructured loans) were not material for all periods presented. Management is not aware of any current recommendations of the regulatory authorities which, if implemented, would have a material effect on the Corporation's liquidity, capital resources or operations. Results of operations: Interest income increased $723,000 or 6.93% for the first nine months of 1995 compared to 1994, while the increase for the quarter was $317,000 or 8.91%. Interest income increased $782,000 or 18.14% for the first nine months while the increase for the quarter was $374,000 or 25.46%. These increases in interest income and expense for the first nine months and three months ended September 30, 1995, versus 1994, are reflective of an increase of both interest earning assets and interest bearing liabilities and overall higher rates offered and paid in 1995 versus 1994. However, repricing of the assets is lagging behind the repricing of the liabilities, resulting in a decline in net interest income of $59,000 or .96% for the first nine months and $57,000 for the three months ended September 30, 1995, versus 1994. Other income has increased $31,000 or 7.69% for the first nine months of 1995 over 1994. The increase for the quarter was $3,000. The increase for the first nine months was due to an increase in all categories, especially trust department income, as a result of the settlement of two large estates. The increase in the other category for the first nine months can all be attributed to an increase in commissions earned as a result of increased volume. Other expenses for the first nine months increased $17,000 or .44% from 1994 to 1995 and for the quarter ended September 30, 1995, versus 1994, the decrease in expenses was $91,000 or 7.05%. For the nine month period, the $50,000 increase in salaries and wages can be attributed to annual merit increases and promotions of employees. The $17,000 decrease in occupancy expense is a direct result of a decrease in repairs and maintenance. The $69,000 decrease in equipment costs can be primarily attributed to the expiration of a lease and a 8. Results of operations (continued): less costly replacement lease. The decrease in federal deposit insurance premiums of $100,000, can be attributed to a $105,000 refund of deposit insurance premiums previously paid and a decrease in the assessment rate from $.23 to $.04 per 100 of insured deposits effective September 30, 1995. The effect of the decrease in the deposit insurance premium assessment rate will continue to have a favorable impact to the bank in the future. The $99,000 increase in the other category, is due to a $15,000 consulting fee incurred in 1995 not incurred in 1994; a $22,000 increase in examination fees by the Pennsylvania Department of Banking; a $15,000 increase in errors and omissions; and an $18,000 increase in repossession and loan collection expense. All of these factors combined have contributed to an increase in net income of $4,000 or .21% for the nine months ended, September 30, 1995, while the net income for the quarter increased $69,000. Liquidity: The objective of liquidity management is to ensure that sufficient funding is available at a reasonable cost to meet the ongoing operational cash needs of the Corporation and to take advantage of income producing opportunities as they arise. While the desired level of liquidity will vary depending upon a variety of factors, it is the primary goal of the Corporation to maintain a high level of liquidity in all economic environments. Principal sources of asset liquidity are provided by securities maturing in one year or less, other short-term investments such as Federal Funds sold and cash and due from banks. Liability liquidity, which is more difficult to measure, can be met by attracting deposits and maintaining the core deposit base. The Corporation joined the Federal Home Loan Bank of Pittsburgh in August of 1993 for the purpose of providing short term liquidity when other sources are unable to fill these needs. In view of the primary and secondary sources previously mentioned, Management believes that the Corporation's liquidity is capable of providing the funds needed to meet loan demand. Interest rate sensitivity: Interest rate sensitivity management is the responsibility of the Asset/Liability Management Committee. This process involves the development and implementation of strategies to maximize net interest margin, while minimizing the earnings risk associated with changing interest rates. The traditional gap analysis identifies the maturity and repricing terms of all assets and liabilities. As of September 30, 1995, the Corporation had a six-month negative gap of $6,960,000. Generally a liability sensitive position indicates that more liabilities than assets are expected to reprice within the time period and that falling interest rates could positively affect net interest income while rising interest rates could negatively affect net interest income. However, the traditional analysis does not accurately reflect the Bank's interest rate sensitivity since the rates on core deposits generally do not change as quickly as market rates. Historically net interest income has, in fact, not been subject to the degree of sensitivity indicated by the traditional analysis at The Juniata Valley Bank. 9. Interest rate sensitivity (continued): Capital Adequacy: The Bank's regulatory capital ratios for the periods presented are as follows: Risk Weighted Assets Ratio: Actual Required ------ -------- September 30, December 31, September 30, December 31, 1995 1994 1995 1994 ------------- ------------ ------------- ------------ TIER I 18.60% 17.16% 8.0% 8.0% TIER I & II 19.84% 18.34% 8.0% 8.0% Total Assets Leveraged Ratio: TIER I 12.36% 11.47% 3.0% 3.0% At September 30, 1995, the Corporation exceeds the regulatory requirements to be considered a "well capitalized" financial institution. 10. Part II. Other Information Item 1. Legal Proceedings None Item 2. Changes in Securities None Item 3. Defaults Upon Senior Securities Not applicable Item 4. Submission of Matters to a Vote of Security Holders Not applicable Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K (a) Reports on Form 8-K None (b) Exhibits (27) Financial Data Schedules Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Juniata Valley Financial Corp. (Registrant) Date_______________________________ By_______________________________ A. Jerome Cook, President Date_______________________________ By_______________________________ Linda L. Engle, Treasurer EX-27 2
9 1,000 9-MOS DEC-31-1995 SEP-30-1995 5,415 20 4,290 0 19,369 45,991 46,034 121,951 1,606 201,407 174,002 0 3,156 0 891 0 0 23,358 201,407 8,509 2,468 176 11,153 5,094 5,094 6,059 135 0 3,922 2,436 1,900 0 0 1,900 2.13 2.13 7.98 396 271 0 890 1,523 58 6 1,606 0 0 0
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