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Juniata Valley Financial Corp. Announces Results for the Quarter and Year Ended December 31, 2018
Mifflintown, PA, Feb. 08, 2019 (GLOBE NEWSWIRE) -- Juniata Valley Financial Corp. (OTC Pink: JUVF) (“Juniata”), announced that Juniata’s net income for the year ended December 31, 2018, was $5,498,000, a 21.2% increase from net income of $4,537,000 for 2017. Earnings per share for 2018 were $1.10, compared to $0.95 in 2017. For the fourth quarter of 2018, net income was $1,217,000, an increase of $639,000 compared to net income of $578,000 in the fourth quarter of 2017. Earnings per share were $0.24 in the fourth quarter of 2018, compared to $0.12 in the fourth quarter of 2017.
President and Chief Executive Officer, Marcie A. Barber stated, “2018 surpassed our expectations for continued strong earnings in all of our core banking areas. We completed Phase II of a strategic effort to de-risk a legacy benefit plan, moving us one step closer to the permanent elimination of related non-interest expense. Our successful acquisition and integration of Liverpool Community Bank (“Liverpool”) contributed to 2018 earnings; we anticipate further growth in assets and revenues from this acquisition in the coming year. Our efforts to connect with our customers and communities will be expanded in 2019, an outreach we anticipate will grow our customer base and deepen relationships.”
Excluding the impact of the items described below, for the year ended December 31, 2018, adjusted net income was $6,024,000, an increase of 14.7% over adjusted net income for the year ended December 31, 2017. Adjusted net income for the fourth quarter of 2018 was $1,254,000 compared to $1,294,000 in the fourth quarter of 2017. Adjusted earnings per share for the year ended December 31 increased by 10.0%, from $1.10 in 2017 to $1.21 in 2018.
Comparability of the results of operations for the three and twelve month periods ended December 31, 2018 and December 31, 2017 was materially impacted by the following events that occurred in 2018 and 2017.
|·||On April 30, 2018, Juniata acquired the remaining shares of Liverpool and Liverpool merged with and into Juniata’s wholly-owned subsidiary, The Juniata Valley Bank. Prior to April 30, 2018, Juniata owned 39.16% of the outstanding common stock of Liverpool and recorded its share of Liverpool’s earnings as “income from unconsolidated subsidiary” using the equity method of accounting. In conjunction with the acquisition, Juniata incurred $259,000 and $884,000 in merger-related expenses in the acquisition of Liverpool during the three and twelve months ended December 31, 2018, respectively. During the three and twelve months ended December 31, 2017, Juniata incurred merger-related expenses of $13,000. Since Juniata accounted for its investment in Liverpool using the equity method, 39.16% of Liverpool’s merger-related expenses incurred in the three and twelve months ended December 31, 2017 reduced Juniata’s non-interest income by $33,000. Additionally, an adjustment to the carrying value of Juniata’s previous 39.16% ownership of Liverpool at April 30, 2018 resulted in a recorded pre-tax net gain of $215,000 during the twelve months ended December 31, 2018.|
|·||In 2017, Juniata initiated a strategy to reduce the liability associated with its frozen legacy defined benefit pension plan. The first step of the initiative consisted of the purchase of a single premium group annuity for a group of Juniata’s retirees, transferring the associated pension liability to the issuer of the annuity. This step reduced Juniata’s overall pension liability by approximately 12%, which resulted in a pre-tax charge to earnings of $377,000 in 2017. In 2018, Juniata completed the second step of the strategy to reduce the liability associated with its defined benefit pension plan by making a lump sum payment offer to a small group of terminated vested participants in Juniata’s defined benefit plan. This step further reduced Juniata’s remaining pension liability by approximately 9%, which resulted in a pre-tax charge to earnings of $210,000 in the twelve months ended December 31, 2018. The pre-tax charges represent a further acceleration of pension expenses that would otherwise have impacted Juniata’s future earnings.|
The following information was filed by Juniata Valley Financial Corp (JUVF) on Friday, February 8, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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