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JV

JUNIATA VALLEY FINANCIAL CORP (JUVF)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 EPS was $0.30, down 9.1% year over year versus $0.33 in Q4 2023, as non-interest expense rose 13.7% on one-time items; net income was $1.5M versus $1.7M a year ago .
  • Net interest margin inflected higher: 2.76% in Q4 2024 vs 2.64% in Q4 2023; average loan yields rose while rates on borrowings fell, and non-interest income increased 12.4% YoY .
  • Management emphasized fee-income execution and strong credit quality (NPLs 0.1% of loans; delinquent+nonperforming 0.4%), and maintained the quarterly dividend at $0.22; tone skewed optimistic on accelerated loan growth in 2025 .
  • No formal numerical guidance provided; the most actionable narrative catalyst was margin stabilization and fee-income traction amid lower market rates late-2024 .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded 12 bps YoY to 2.76%, reversing prior compression; “Our net interest margin increased by twelve basis points compared to last year’s fourth quarter” — Marcie A. Barber, CEO .
  • Non-interest income rose 12.4% YoY, driven by customer service fees (+$109k), loan-related fees (+$68k including back-to-back swap/title insurance/LC fees), and life insurance proceeds (+$56k) .
  • Credit quality remained strong: nonperforming loans at 0.1% of total loans and delinquent+nonperforming loans at 0.4% of the portfolio; management highlighted optimism to “achieve accelerated loan growth while maintaining… excellent credit quality” .

What Went Wrong

  • Non-interest expense increased 13.7% YoY (to $5.7M), impacted by an extra pay period (+$212k comp), higher medical claims (+$273k benefits), occupancy from early lease termination (+$108k), equipment (+$80k), and professional fees (+$90k) .
  • EPS and net income declined YoY ($0.30 and $1.491M vs $0.33 and $1.674M), as higher operating costs outpaced the NIM improvement .
  • Funding pressures persisted YoY in deposits (time deposit rates +67 bps YoY) even as borrowing costs declined with market rates; deposit cost headwinds moderated margin gains .

Financial Results

Quarterly P&L Trend (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Total Interest Income ($USD Millions)$9.311 $9.454 $9.346
Net Interest Income ($USD Millions)$5.780 $5.795 $5.815
Provision for Credit Losses ($USD Thousands)$119 $232 $63
Non-Interest Income ($USD Millions)$1.479 $1.445 $1.605
Non-Interest Expense ($USD Millions)$5.098 $5.101 $5.654
Income Before Taxes ($USD Millions)$2.042 $1.907 $1.703
Income Tax Provision ($USD Millions)$0.296 $0.270 $0.212
Net Income ($USD Millions)$1.746 $1.637 $1.491
Diluted EPS ($USD)$0.35 $0.33 $0.30

YoY Comparison (Q4 2023 → Q4 2024)

MetricQ4 2023Q4 2024
Net Interest Income ($USD Millions)$5.571 $5.815
Non-Interest Income ($USD Millions)$1.428 $1.605
Non-Interest Expense ($USD Millions)$4.974 $5.654
Net Interest Margin (%)2.64% 2.76%
ROAA (Annualized, %)0.79% 0.70%
ROAE (Annualized, %)18.06% 12.79%
Diluted EPS ($USD)$0.33 $0.30

Balance Sheet and KPIs

MetricDec 31, 2023Dec 31, 2024
Total Assets ($USD Millions)$870.555 $848.874
Total Loans ($USD Thousands)$525,394 $533,869
Allowance for Credit Losses ($USD Thousands)$(5,677) $(6,183)
Total Deposits ($USD Thousands)$749,045 $747,957
Short-term Borrowings & Repos ($USD Thousands)$52,810 $42,242
Long-term Debt ($USD Thousands)$20,000 $5,000
Cash & Equivalents ($USD Thousands)$28,930 $10,998
Stockholders’ Equity ($USD Thousands)$40,137 $47,457
NPLs (% of total loans)—0.1%
Delinquent + Nonperforming Loans (% of loans)0.2% (Q3) 0.4%

Margin and Returns by Quarter (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Net Interest Margin (%)2.73% 2.73% 2.76%
ROAA (Annualized, %)0.81% 0.76% 0.70%
ROAE (Annualized, %)16.38% 14.72% 12.79%
Yield on Earning Assets (%)4.36% 4.41% 4.39%
Cost to Fund Earning Assets (%)2.29% 2.38% 2.26%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025$0.22 (Q3 2024 dividend) $0.22 payable Feb 28, 2025 Maintained
Net Interest Margin Outlook2025Narrative: compression abating Narrative: margin increased QoQ/YoY in Q4; optimistic heading into 2025 Qualitative improvement
Revenue/Margins/OpEx2025No formal guidance providedNo formal guidance providedMaintained (no formal guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Net Interest MarginMargin compression; NIM 2.73%; funding costs up YoY Compression abating; NIM 2.73%; optimism with Fed cuts NIM 2.76%; “increased by twelve basis points” Improving
Fee Income Strategy+7.3% YoY; loan-related/title fees up +11.1% YoY; customer service and equity sec. gains +12.4% YoY; swap/title/LC fees add; fees +$109k Strengthening
Deposit Competition/FundingTime deposits/borrowings up; cost to fund +76 bps Continued competition; cost to fund +68 bps Time deposit rates +67 bps; borrowing costs down 77 bps Mixed but easing
Asset QualityDelinquent+NPLs 0.2% of loans Delinquent+NPLs 0.2% of loans NPLs 0.1%; Delinquent+NPLs 0.4% Still strong; slight uptick in DQ
Expansion & EfficiencyCore conversion; fee focus Expand outside footprint; branch optimization Cultivate relationships beyond footprint; exploring expansion Ongoing execution
LiquidityFHLB $219.0M; no brokered deposits FHLB $242.5M; no brokered deposits FHLB $216.2M; internal auth. brokered up to $175M; none outstanding Stable ample capacity

Management Commentary

  • “The Federal Reserve Bank rate decreases made in the last four months of 2024 contributed to a reversal… of the net interest margin compression trend… Our net interest margin increased by twelve basis points compared to last year’s fourth quarter.” — Marcie A. Barber, President & CEO .
  • “Our strategies to increase non-interest income have been successful resulting in substantial growth in both the fourth quarter of 2024 and the 2024 year.” — Marcie A. Barber .
  • “Our credit quality remains strong with nonperforming loans totaling only 0.1% of the total loan portfolio… We are optimistic heading into 2025 that we can achieve accelerated loan growth…” — Marcie A. Barber .

Q&A Highlights

  • No Q4 2024 earnings call transcript was included in filed materials; available disclosures comprise the 8-K and press release with prepared remarks and financial statements .

Estimates Context

  • Wall Street consensus EPS and revenue estimates for Q4 2024 via S&P Global were unavailable at the time of request; therefore, no comparison to consensus can be provided. Micro-cap OTC banks often have limited formal sell-side coverage [GetEstimates errors].
  • Given the absence of consensus, framing updates focuses on margin stabilization, fee-income growth, and operating expense normalization going forward .

Key Takeaways for Investors

  • Margin inflection: NIM rose to 2.76% as loan yields improved and borrowing costs fell; a constructive backdrop if rate cuts persist and deposit costs reprice slower .
  • Expense normalization likely a lever in 2025: Q4’s higher OpEx had identifiable one-offs (extra pay period, medical claims, lease termination); watch for reverting run-rate .
  • Fee income traction is real: broader sources (swap fees, title insurance, LC fees) drove double-digit non-interest income growth; this diversifies earnings beyond NII .
  • Credit quality strong despite slight DQ uptick: NPLs 0.1%; delinquent+nonperforming 0.4%; supports loan growth ambitions without pressuring provision .
  • Balance sheet flexibility: significant contingent FHLB capacity ($216.2M) and brokered deposit authorization (up to $175.0M; none outstanding), enabling funding agility .
  • Dividend stability: $0.22 per share maintained; total equity up $7.3M YoY, offering support for capital return while investing in growth .
  • Trading implications: near-term, favor setups around confirmation of expense normalization and continued NIM improvement; medium-term thesis hinges on sustained fee-income growth and disciplined deposit pricing while preserving asset quality .