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JV

JUNIATA VALLEY FINANCIAL CORP (JUVF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered solid profitability with net income $1.911M and EPS $0.38, up 9.5% and 8.6% year over year, driven by disciplined loan/deposit pricing, stronger NIM, and loan growth .
  • Net interest margin expanded to 2.95% (fully tax-equivalent), +12 bps sequentially and +22 bps year over year, as earning asset yields rose and funding costs fell .
  • Credit quality remained robust: non-performing loans at 0.09% of loans; ACL coverage ~1,291% of non-accruals; provision increased on loan growth and model factors, not deterioration .
  • Liquidity and funding flexibility are strong (FHLB capacity $203.9M; Fed $50.7M; brokered authorization $175M; no brokered deposits), and the Board maintained the quarterly dividend at $0.22 per share (declared July 15) .
  • Street consensus coverage for EPS/revenue was unavailable; we cannot classify the quarter as a beat/miss versus estimates; near-term stock narrative likely focuses on sequential NIM improvement and continued loan momentum . S&P Global estimates unavailable.

What Went Well and What Went Wrong

What Went Well

  • Net interest margin inflected higher: 2.95% in Q2 (+22 bps y/y; +12 bps q/q), supported by higher loan yields and lower funding costs . CEO: “Disciplined loan and deposit pricing and healthy loan growth” are driving improvements .
  • Credit quality strong: nonperforming loans at 0.09% of loans; delinquent + nonperforming loans 0.3% per CEO comments .
  • Expense control: year-to-date non-interest expense fell 4.9% y/y, primarily employee compensation/benefits; data processing also lower versus 1H24 .

What Went Wrong

  • Provision rose to $349K in Q2 (vs. $119K Q2’24) due to loan growth and macro model factors; not credit deterioration—still a headwind to net income .
  • Non-interest income flat y/y at $1.477M; trust fees and non-deposit product commissions declined, partially offset by equity gains and “other” income .
  • Other non-interest expense increased y/y within the quarter (+$176K), primarily from higher provision for unfunded commitments; taxes other than income also up .

Financial Results

Metric (USD)Q4 2024Q1 2025Q2 2025
Net Interest Income ($000s)$5,815 $5,822 $6,177
Total Non-Interest Income ($000s)$1,605 $1,346 $1,477
Provision for Credit Losses ($000s)$63 $104 $349
Net Income ($000s)$1,491 $2,008 $1,911
Diluted EPS ($)$0.30 $0.40 $0.38
Net Interest Margin % (FTE)2.76% 2.83% 2.95%
ROAA (annualized) %0.70% 0.94% 0.89%
ROAE (annualized) %12.79% 16.55% 15.01%

Balance sheet KPIs:

Metric ($000s)Q4 2024Q1 2025Q2 2025
Total Assets$848,874 $854,007 $866,434
Total Loans$533,869 $538,971 $556,319
Total Deposits$747,957 $748,685 $759,307
Short-term Borrowings & Repos$42,242 $44,082 $49,720
Long-term Debt$5,000 $5,000 $— (matured)
Stockholders’ Equity$47,457 $50,196 $52,381

Yield/cost drivers (quarter):

DriverQ2 2024Q1 2025Q2 2025
Yield on Earning Assets %4.36% 4.42% 4.50%
Cost of Interest-Bearing Liabilities %2.29% 2.26% 2.21%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin (directional)2025“Reversal… of NIM compression” and optimism heading into 2025 “Anticipate continued strong loan activity… expected to contribute to the positive trend in our net interest margin” Maintained positive outlook
Loan Growth Focus2025“Accelerate loan growth… especially in State College and Harrisburg” “Anticipate continued strong loan activity throughout the remainder of 2025” Maintained
Dividend per ShareQ2/Q3 2025$0.22 declared for May 30, 2025 $0.22 declared for Sep 1, 2025 Maintained

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript available; themes below reflect management disclosures across press releases and the 10-Q.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Net Interest MarginQ4: NIM increased 12 bps y/y; reversal of prior compression . Q1: NIM 2.83% (+20 bps y/y) .2.95% (+22 bps y/y; +12 bps q/q) .Improving
Loan GrowthQ4: Optimistic entering 2025 . Q1: Plan to accelerate growth in State College/Harrisburg .Loans +$22.5M YTD (+4.2%) led by commercial; strong activity anticipated .Accelerating
Credit QualityQ4: NPLs 0.1% of loans; strong quality . Q1: NPLs/delinquents 0.4% .NPLs 0.09% of loans; ACL/NPL ~1,291% .Stable/Strong
Liquidity & FundingQ4: Ample FHLB/Fed capacity; LT debt down . Q1: FHLB $213.3M; Fed $51.2M; no brokered deposits .FHLB $203.9M; Fed $50.7M; no brokered; ST borrowings up to replace matured LT debt .Stable; mix shift to ST
Non-Interest IncomeQ4: Strong growth y/y . Q1: +3.9% y/y; mix shifts (fees up, title insurance down) .Flat y/y in Q2; offsets between trust/commissions vs equity/other .Mixed

Management Commentary

  • “We are pleased to announce second quarter net income of $1.9 million… due primarily to disciplined loan and deposit pricing and healthy loan growth. Our credit quality remains strong… We anticipate continued strong loan activity… expected to contribute to the positive trend in our net interest margin.” — Marcie A. Barber, President & CEO .
  • Q1 tone on strategy: “Focus… to accelerate loan growth… while maintaining our excellent credit quality… continue the improvements in fee generation and the containment of operating expenses, while exploring opportunities for expansion.” — Marcie A. Barber .
  • Q4 setup into 2025: “Federal Reserve Bank rate decreases… contributed to a reversal… of net interest margin compression… strategies to increase non-interest income have been successful… optimistic heading into 2025.” — Marcie A. Barber .

Q&A Highlights

No Q2 2025 earnings call transcript or Q&A available (company did not publish a call transcript for Q2) [ListDocuments: earnings-call-transcript returned none].

Estimates Context

  • Consensus EPS and revenue estimates for Q2 2025 were unavailable for JUVF; coverage appears limited. As a result, we cannot assess a beat/miss versus Street [GetEstimates returned no consensus].
  • S&P Global recorded an actual Q2 2025 “Revenue” figure of $7.205M*, but no consensus was available; caution that “revenue” definitions for banks may differ from “total consolidated revenues” (interest + non-interest) used in filings [GetEstimates].
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sequential NIM expansion to 2.95% and strong loan growth (+4.2% YTD) underpin earnings resilience despite higher provisioning tied to growth and macro factors .
  • Credit quality remains a differentiator (NPLs 0.09% of loans; ACL/NPL ~1,291%), limiting downside risk from credit costs .
  • Expense discipline is visible year-to-date with lower compensation/benefits and professional fees, supporting operating leverage as NIM improves .
  • Funding flexibility and robust liquidity (FHLB/Fed capacity; no brokered deposits) offset the maturity of long-term debt; short-term borrowings increased to bridge needs .
  • Dividend continuity ($0.22/share) signals confidence in capital and earnings trajectory; payout stability is a supportive factor for total return .
  • Near-term catalysts: sustained NIM improvement, commercial loan momentum in targeted regions, and stabilization/improvement in fee income mix (trust/online banking) .
  • With Street consensus unavailable, stock moves will likely key off internal trends (NIM, loan growth, credit quality) and broader rate dynamics rather than headline beats/misses .