10-Q 1 jv-10q_52599.txt JUNIATA VALLEY 10-Q EDGAR FILING UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934 For the quarterly period ended September 30, 2001 ------------------ [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------------------ ------------------- Commission File Number 2-81699 -------------------------------------------------------- Juniata Valley Financial Corp. ------------------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Pennsylvania 23-2235254 ----------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S.Employer incorporation or organization) Identification No.) Bridge and Main Streets, Mifflintown, Pennsylvania 17059 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (717) 436-8211 ------------------------------------------------------------------------------ (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [ ] No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding as of September 30, 2001 ----------------------------------------------------------------------------- Common Stock ($1.00 par value) 2,368,945 shares 2. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY --------------------------------------------- CONSOLIDATED BALANCE SHEETS --------------------------- ASSETS ------ September 30, December 31, 2001 2000 ---- ---- (In thousands) (Unaudited) Cash and due from banks $ 9,226 $ 10,621 Interest-bearing deposits with banks 682 676 Federal Funds Sold 6,200 4,400 --------- --------- Total cash and cash equivalents 16,108 15,697 Securities available for sale 49,874 33,146 Securities held to maturity, fair value $39,607 and $50,967, respectively 38,676 51,240 Federal Home Loan Bank stock 1,208 1,185 Loans receivable net of allowance for loan losses $2,547 and $2,497, respectively 228,212 219,819 Bank premises and equipment, net 6,078 5,992 Bank-owned life insurance 6,701 1,462 Accrued interest receivable and other assets 6,721 6,373 --------- --------- TOTAL ASSETS $ 353,578 $ 334,914 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Liabilities: Deposits: Non-interest bearing $ 35,242 $ 33,893 Interest bearing 267,283 253,327 --------- --------- Total deposits 302,525 287,220 Accrued interest payable and other liabilities 5,277 4,612 --------- --------- Total liabilities 307,802 291,832 --------- --------- Stockholders' Equity: Preferred stock, no par value; 500,000 shares authorized; no shares issued or outstanding -- -- Common stock, par value $1.00 per share; authorized 20,000,000 shares; issued 2001 2,372,945 and 2000 2,332,058 shares 2,373 2,332 Surplus 20,222 20,398 Retained earnings 22,379 25,117 Treasury stock, at cost 2001 4,000 shares; 2000 167,110 shares (112) (5,132) Accumulated other comprehensive income 914 367 --------- --------- Total stockholders' equity 45,776 43,082 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 353,578 $ 334,914 ========= ========= 3.
JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY --------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (Unaudited) For the Quarter Ended For Nine Months Ended --------------------- --------------------- September 30, September 30, September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- (In thousands, except per share amount) INTEREST INCOME: Loans receivable $ 4,992 $ 4,923 $ 15,130 $ 14,200 Taxable securities 714 801 1,961 2,519 Tax-exempt securities 397 429 1,177 1,380 Other 89 117 406 174 ---------- ---------- ---------- ---------- Total interest income 6,192 6,270 18,674 18,273 INTEREST EXPENSE Deposits 3,029 3,065 9,175 8,729 ---------- ---------- ---------- ---------- Net interest income 3,163 3,205 9,499 9,544 PROVISION FOR LOAN LOSSES 60 45 180 135 ---------- ---------- ---------- ---------- Net interest income, after provision for loan losses 3,103 3,160 9,319 9,409 ---------- ---------- ---------- ---------- OTHER INCOME: Trust department 125 70 348 270 Customer service fees 153 140 465 402 Other 231 113 626 357 ---------- ---------- ---------- ---------- Total other income 509 323 1,439 1,029 ---------- ---------- ---------- ---------- OTHER EXPENSES: Salaries and wages 873 912 2,636 2,723 Employee benefits 283 275 887 830 Occupancy 143 122 411 358 Equipment 293 232 893 708 Director compensation 99 76 282 222 Taxes, other than income 121 120 364 345 Other 326 288 970 920 ---------- ---------- ---------- ---------- Total other expenses 2,138 2,025 6,443 6,106 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 1,474 1,458 4,315 4,332 FEDERAL INCOME TAXES 352 336 943 1,072 ---------- ---------- ---------- ---------- Net income $ 1,122 $ 1,122 $ 3,372 $ 3,260 ========== ========== ========== ========== Basic earnings per share $ .47 $ .47 $ 1.42 $ 1.34 ========== ========== ========== ========== Weighted average number of shares outstanding 2,371,249 2,410,036 2,370,855 2,430,936 ========= ========= ========= =========
4.
JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY --------------------------------------------- CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ---------------------------------------------- FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 -------------------------------------------- (Unaudited) Accumulated Other Common Retained Treasury Comprehensive Stock Surplus Earnings Stock Income Total ----- ------- -------- ----- ------ ----- (In thousands) BALANCE, December 31, 2000 $ 2,332 $ 20,398 $ 25,117 $(5,132) $ 367 $ 43,082 -------- Net income for the nine months ended September 30, 2001 -- -- 3,372 -- -- 3,372 Change in unrealized gains (losses) on securities available for sale, net of reclassification adjustment and tax effects -- -- -- -- 547 547 -------- Total Comprehensive Income 3,919 -------- Cash dividends, $.39 per share -- -- (922) -- -- (922) Stock issued under dividend reinvestment plan 7 166 -- -- -- 173 Stock issued under employee stock purchase plan 2 30 -- -- -- 32 10% Stock dividend 32 (372) (5,188) 5,517 -- (11) Treasury stock acquired -- -- -- (497) -- (497) ------- -------- -------- ------- ------ -------- Balance September 30, 2001 $ 2,373 $ 20,222 $ 22,379 $ (112) $ 914 $ 45,776 ======= ======== ======== ======= ====== ========
5. JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY --------------------------------------------- CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ---------------------------------------------- FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 -------------------------------------------- (Unaudited) Accumulated Other Common Retained Treasury Comprehensive Stock Surplus Earnings Stock Income Total ----- ------- -------- ----- ------ ----- (In thousands) BALANCE, December 31, 1999 $ 2,332 $ 20,559 $ 23,665 $(3,403) $ 102 $ 43,255 -------- Net income for the nine months ended September 30, 2000 -- -- 3,260 -- -- 3,260 Change in unrealized gains (losses) on securities available for sale, net of reclassification adjustment and tax effects -- -- -- -- 64 64 -------- Total Comprehensive Income 3,324 -------- Treasury stock acquired -- -- -- (1,812) -- (1,812) Treasury stock issued for dividend reinvestment plan (7,516 shares) -- (77) -- 272 -- 195 Treasury stock issued for employee stock purchase plan (39 shares) -- -- -- 2 -- 2 Cash dividends, $.82 per share -- -- (2,022) -- -- (2,022) ------- -------- -------- ------- ------ -------- Balance September 30, 2000 $ 2,332 $ 20,482 $ 24,903 $(4,941) $ 166 $ 42,942 ======= ======== ======== ======= ====== ========
6.
JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY --------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS ------------------------------------- (Unaudited) Increase (Decrease) in Cash and Cash Equivalents For the Nine Months Ended ------------------------- September 30, September 30, 2001 2000 ------------- ------------- (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,372 $ 3,260 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 180 135 Provision for depreciation 284 237 Net amortization on securities premium 146 138 Deferred directors' fees and supplemental retirement plan expense 332 192 Earnings on life insurance (238) (56) Payment of deferred compensation (211) (129) Deferred income taxes (107) (53) Increase in accrued interest receivable and other assets (379) (471) Increase in interest payable and other liabilities 399 124 -------- -------- Net cash provided by operating activities 3,778 3,377 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of available for sale securities (28,655) (861) Proceeds from maturities of and principal repayments on available for sale securities 12,664 8,932 Purchases of held to maturity securities -- (701) Proceeds from maturities of and principal repayments on held to maturity securities 12,488 6,401 Net increase in loans receivable (8,574) (12,986) Net purchases of bank premises and equipment (369) (2,167) Purchase of life insurance (5,000) -- -------- -------- Net cash used in investing activities (17,446) (1,382) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in deposits 15,304 5,340 Net decrease in short-term borrowings -- (5,300) Cash dividends and cash paid for fractional shares (933) (2,022) Purchase of treasury stock (497) (1,812) Stock issued for dividend reinvestment and employee stock purchase plan 205 197 -------- -------- Net cash provided used in financing activities 14,079 (3,597) -------- -------- Increase (decrease) in cash and cash equivalents 411 (1,602) CASH AND CASH EQUIVALENTS: Beginning 15,697 16,034 -------- -------- Ending $ 16,108 $ 14,432 ======== ======== CASH PAYMENTS FOR: Interest $ 9,115 $ 8,746 ======== ======== Income Taxes $ 675 $ 1,140 ======== ========
7. 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, 2001 are not necessarily indicative of the results that may be expected for the year ended December 31, 2001. 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, 2000. NOTE B - Accounting Standards The Financial Accounting Standards Board issued Statement No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities", in September 2000. This Statement replaces SFAS No. 125 of the same name. It revises the standards of securitization and other transfers of financial assets and collateral and requires certain disclosures, but carries over most of the provisions of SFAS No. 125 without reconsideration. SFAS No. 140 is effective for transfers and servicing of financial assets and extinguishments of liabilities occurring after March 31, 2001. The Statement is effective for fiscal year ended December 15, 2000. This Statement is to be applied prospectively with certain exceptions. Other than these exceptions, earlier or retroactive application of its accounting provision is not permitted. In June of 2001, the Financial Accounting Standards Board issued Statement No. 141, "Business Combinations", and Statement No. 142, "Goodwill and Other Intangible Assets". Statement No. 141 requires all business combinations to be accounted for using the purchase method of accounting as use of the pooling of interests method is prohibited. In addition, this Statement requires that negative goodwill that exists after the basis of certain acquired assets is reduced to zero should be recognized as an extraordinary gain. The provisions of this Statement apply to all business combinations initiated after June 30, 2001. Statement No. 142 prescribes that goodwill associated with a business combination and intangible assets with an indefinite useful life should not be amortized but should be tested for impairment at least annually. The Statement requires intangibles that are separable from goodwill and that have a determinable useful life to be amortized over the determinable useful life. The provisions of this Statement will become effective for the Bank in January of 2002. Upon adoption of this Statement, goodwill and other intangible assets arising from acquisitions completed before July 1, 2001 should be accounted for in accordance with the provisions of this Statement. This transition provision could require classification of a previously separately recognized intangible to goodwill and vice versa if the intangibles in question do not meet the new criteria for classification as a separately recognizable intangible. In July of 2001, the Financial Accounting Standards Board issued Statement No. 143, "Accounting for Asset Retirement Obligations", which addresses the financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This Statement requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable 8. estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. This Statement will become effective for the Bank on January 1, 2003. The Financial Accounting Standards Board issued Statement No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets", in August 2001. This Statement supersedes Statement No. 121 of the same name and the accounting and reporting provisions of APB Opinion No. 30, "Reporting the Results of Operations-Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions for the disposal of a segment of a business". This Statement also amends ARB 51, "Consolidated Financial Statements". Because Statement No. 121 did not address the accounting for a segment of a business accounted for as a discontinued operation under Opinion 30, two accounting models existed for long-lived assets to be disposed of . The Board decided to establish a single accounting model, based on the framework established in Statement No. 121, for long-lived assets to be disposed of as a sale. Adoption of these Statements is not expected to have a material impact on the Bank's financial condition or results of operations. 9. MANAGEMENT'S DISCUSSION AND ANALYSIS Forward Looking Statements: The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words "believes," "anticipates," "contemplates," "expects," and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Those risks and uncertainties include changes in interest rates, risks associated with the effect of opening a new branch, the ability to control costs and expenses, and general economic conditions. The Corporation undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Financial Condition: Total assets of Juniata Valley Financial Corp. totaled $353,578,000 as of September 30, 2001, an increase of $18,664,000 or 5.57% from December 31, 2000. This increase is a result of the increase in deposits of $15,304,000. These deposits were used to fund loan demand of $8,574,000 and bank owned life insurance of $5,000,000 to fund directors' retirement and a salary continuation plan for key employees. Because the Federal Reserve lowered interest rates by 350 basis points from January to September 30, 2001 proceeds from called and matured securities were $25,152,000; however the bank was able to purchase securities of $28,655,000 that fit investment policy guidelines. Loan demand in 2001 has not been as strong as the loan demand in 2000. Some of this decrease in demand between 2000 and 2001 can be attributed to consumers uncertainty of the market place and their reluctance to take on more debt. All of this resulted in an increase in cash and cash equivalents of $411,000. 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. 10. Results of Operations: Interest income increased $401,000 or 2.19% for the first nine months of 2001 over 2000. For the quarter there was a decrease of $78,000 or 1.24%. The increase for nine months came from interest income on loans. The increase in loan income for nine months was $930,000. Interest income on securities has declined $761,000 for the nine month period ended September 30, 2001. This decline can be attributed to the lower rates being offered on securities purchased versus rates on called and matured securities. The increase of $232,000 for nine months in interest income on other can be attributed to the dollar amount of federal funds sold in 2001 versus 2000. Interest expense increased by $446,000 or 5.11% for the first nine months of 2001; however there was a decrease of $36,000 or 1.17% for the quarter. Interest income and expense for the first nine months ended September 30, 2001, versus 2000, are reflective of an increase of both interest earning assets and interest bearing liabilities even though overall rates offered and paid in 2001 versus 2000 were lower. The numbers presented for the quarter reflect the declining interest rate environment for both interest earning assets and interest bearing liabilities. This resulted in a decrease in net interest income of $45,000 or .47% for the nine months ended September 30, 2001 and $42,000 or 1.31% for the quarter. The increase in the allowance for loan losses is based upon quarterly loan portfolio reviews by management and a committee of the Board. The purpose of the review is to assess loan quality, identify impaired loans, analyze delinquencies, ascertain loan growth, evaluate potential charge-offs and recoveries and assess general economic conditions in the market served. Net charge-offs at September 30, 2001 were $130,000 compared to $67,000 at September 30, 2000. Past due and nonaccrual loans at September 30, 2001 were $3,684,000. At September 30, 2000, this amount for past due and non-accrual loans was $2,721,000. Depending upon the state of the economy and the impact thereon to these borrowers, these loans and others not currently so identified could be classified as non-performing assets in the future. The increase in the provision is not reflective of a decline in underwriting standards or potential problem loans. Other income has increased $410,000 or 39.84% for the first nine months and $186,000 or 57.59% for the quarter in 2001 over 2000. Trust department income has increased $78,000, customer service fees have increased $63,000 and other income has increased $269,000. The increase in trust department income is a result of the settlement of six estates. The increase in customer service fees is a result of higher transaction volume as opposed to an increase in fees. The other category increase can be attributed to a bank owned life insurance policy put into place in March of 2001 which added $182,000, and an increase in mutual fund commissions of $64,000. Other expenses increased $337,000 or 5.52% for the nine months and $113,000 or 5.58% for the quarter ended September 30, 2001. The $87,000 decrease in salary and wages for the nine months ended September 30, 2001 compared to 2000, can be attributed to a decrease of five full time equivalents. The $57,000 increase in employee benefits is reflective of increases in costs as opposed to additional benefits. The $53,000 increase in occupancy is a result of increased costs for the financial center that was occupied in December 2000. The $185,000 increase in equipment cost is from the purchase of additional equipment for the operations center and maintenance of the equipment. The $60,000 increase in director's fees is from a retirement plan put into place in 2001 which is funded by the bank owned life insurance mentioned above. The $19,000 increase in taxes, other than income is an increase in Pennsylvania Bank Shares Tax. The $50,000 increase in other expenses can be attributed to the outsourcing of the internal audit and loan review function. The decrease in federal income taxes is due to the tax favored treatment of the bank owned life insurance plan. All of these factors combined have contributed to an increase in net income of $112,000 or 3.44% for the nine months and no change in the quarter ended September 30, 2001. 11. 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 and 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, 2001, the Corporation had a six-month negative gap of $25,012,000. 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. 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, 2001 2000 2001 2000 ------------- ------------ ------------- ------------ TIER I 17.92% 18.46% 4.0% 4.0% TIER I & II 19.00% 19.59% 8.0% 8.0% Total Assets Leveraged Ratio: TIER I 12.09% 12.30% 4.0% 4.0%
At September 30, 2001, the Corporation and the Bank exceed the regulatory requirements to be considered a "well capitalized" financial institution. 12. Quantitative and Qualitative Disclosures About Market Risk: As mentioned earlier from January 1, 2001 to September 30, 2001, the Federal Reserve has lowered the federal funds rate eight times by 350 basis points. We are currently in the lowest interest rate environment in 40 years. Net interest margin for the Bank was 4.06% at December 31, 2000 and decreased to 3.93% at September 30, 2001. Because of the extent to which rates have declined this year, the Bank has become more sensitive to future rate declines and expects added compression of the net interest margin. Currently, the Bank has 30.18% of its deposits in NOW, money market and savings accounts, which it considers core deposits. These type of interest bearing deposit accounts carry lower rates relative to other types of deposits. Because of this, these accounts have contributed significantly to the net interest margin. However, there is an ultimate floor to which the rates on these accounts can fall. Under current conditions, the ability to further decrease these deposits rates while loan and other earning assets continue to drop and re-price at lower rates will result in further compression of the net interest margin. The added risk in this interest rate environment is that as the rates on the core deposits bottom-out, investors could migrate to other types of accounts paying higher rates. The last financial simulation performed by the Bank as of June 30, 2001, showed a possible decline in net interest income of $382,000 in a -200 basis point rate shock over a one year period. This reflected a change in the assumptions that the rates on NOW and savings account would remain constant in a +/-200 basis point rate shock. The Bank has actually reduced these rates since June 30, 2001, which should help to mitigate the impact on the net interest margin. The net interest income at risk position remains within the guidelines established by the Bank's asset/liability policy. The Bank continues to monitor and manage its rate sensitivity during these unusual times. No material change has been noted in the Bank's equity value at risk. Please refer to the Annual Report on Form 10-K as of December 31, 2000 for further discussion of this matter. 13. 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 Holder None Item 5. Other information None Item 6. Exhibits None Form 8-K None 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 --------------------------- ------------------------------------ Francis J. Evanitsky, President Date By ---------------------------- ------------------------------------ Linda L. Engle, Treasurer