# EDGAR Filing Document

**Accession Number:** 0000714712
**File Stem:** 0001558370-23-000650
**Filing Date:** 2023-1
**Character Count:** 27124
**Document Hash:** ce2b87a4b4e6684749f7444c0aa9016e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-000650.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0001558370-23-000650

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230127

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230127

**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:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-13232
- **FILM NUMBER:** 23560128

**BUSINESS ADDRESS:**
- **STREET 1:** 2 SOUTH 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

?xml version='1.0' encoding='UTF-8'? UNITED STATES

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **January 27, 2023**

**JUNIATA VALLEY FINANCIAL CORP.**

(Exact name of registrant as specified in its charter)

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|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-<br>|  |  |
| &nbsp;&nbsp;**Pennsylvania** | &nbsp;&nbsp;**0-13232** | &nbsp;&nbsp;**23-2235254** |
| &nbsp;&nbsp;(State or other Jurisdiction of Incorporation) | &nbsp;&nbsp;(Commission File Number) | &nbsp;&nbsp;&nbsp;&nbsp;(IRS Employer Identification No.) |

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| | |
|:---|:---|
| &nbsp;&nbsp;**Bridge and Main Streets, Mifflintown, Pennsylvania** | &nbsp;&nbsp;**17059** |
| &nbsp;&nbsp;(Address of principal executive offices) | &nbsp;&nbsp;(Zip Code) |

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Registrant's telephone number, including area code: **(855) 582-5101**

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| |
|:---|
| &nbsp;&nbsp;<br>**Not Applicable** |
| &nbsp;&nbsp;(Former name or former address if changed since last report.) |

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Title of each class** | &nbsp;&nbsp;**Trading Symbol(s)** | &nbsp;&nbsp;**Name of each exchange on which registered** |
| &nbsp;&nbsp;None | &nbsp;&nbsp;N/A | &nbsp;&nbsp;N/A |

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Juniata Valley Financial Corp.

Current Report on Form 8-K

**Item 2.02** **Results of Operations and Financial Condition**

On January 27, 2023, Juniata Valley Financial Corp. issued a press release reporting financial results for the quarter and year ended December 31, 2022. The aforementioned press release is attached as Exhibit 99.1 to this current report on Form 8-K.

**Item 9.01** **Financial Statements and Exhibits.**

Exhibits. The exhibits listed in the Exhibit Index accompanying this Form 8-K are furnished herewith.

**Exhibit Index**

Exhibit No. Description <br> 99.1 [Press Release reporting financial results for the quarter and year ended December 31, 2022](tmb-20230127xex99d1.htm).

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

**SIGNATURES**

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.

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| | | |
|:---|:---|:---|
|  | **Juniata Valley Financial Corp.** | **Juniata Valley Financial Corp.** |
| Date: January 27, 2023  | By: | /s/ Michael W. Wolf |
|  | Name: | Michael W. Wolf |
|  | Title: | SVP, Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![Graphic](tmb-20230127xex99d1001.jpg)

Juniata Valley Financial Corp. Announces Fiscal Year and Fourth Quarter 2022 Results

Mifflintown, PA, January 27, 2023 (GLOBE NEWSWIRE) -- Juniata Valley Financial Corp. (OTCQX:JUVF) ("Juniata"), announced net income for the year ended December 31, 2022 of $8.3 million, an increase of 26.0%, compared to net income of $6.6 million for the year ended December 31, 2021. Earnings per share, basic and diluted, increased 25.8%, to $1.66, for the year ended December 31, 2022, compared to $1.32 for the year ended December 31, 2021. Net income for the three months ended December 31, 2022, increased 57.7%, to $2.1 million, compared to net income of $1.3 million for the three months ended December 31, 2021. Earnings per share, basic and diluted, increased 55.6% for the three months ended December 31, 2022, to $0.42, compared to basic and diluted earnings per share of $0.27 for the corresponding 2021 period.

***President's Message***

Juniata's President and Chief Executive Officer, Marcie A. Barber stated, "2022 was a historic year for us. We posted record net income of $8.3 million, had net loan growth of 18.4%, excluding PPP loan forgiveness, and maintained excellent asset quality. We are very excited about the opportunities our recently announced branch purchase in the Path Valley area presents as we enhance our footprint and commitment to serving the banking needs of customers in rural areas. 2023 poses many challenges; a changing interest rate environment, uncertain economic times and rising cost of funds; however, we believe we are well positioned to navigate these headwinds."

***Financial Results Year-to-Date***

Return on average assets for the year ended December 31, 2022, was 1.02%, an increase of 25.9% compared to the return on average assets of 0.81% for the year ended December 31, 2021. Return on average equity for the year ended December 31, 2022 was 16.59%, an increase of 84.9% compared to the return on average equity of 8.97% for the year ended December 31, 2021.

Net interest income was $24.1 million for the year ended December 31, 2022 compared to $21.3 million for the comparable 2021 period. Average earning assets increased $23.1 million, or 3.0%, to $787.4 million, during the year ended December 31, 2022, compared to the same period in 2021, primarily due to an increase of $18.7 million, or 4.4 %, in average loans, as well as a $10.5 million, or 3.2%, increase in average investment securities. The yield on earning assets during the year ended December 31, 2022 increased by 29 basis points to 3.50% compared to the year ended December 31, 2021 primarily due to the increase in market interest rates driven by an increase of 425 basis points in the federal funds target range and prime rate during the 2022 period. Average interest bearing liabilities increased by $9.2 million, or 1.6%, to $568.1 million for the year ended December 31, 2022 compared to the comparable 2021 period, due to growth in average interest-bearing demand and savings deposits, as well as average overnight borrowings and short-term debt. These increases were partially offset by decreases in average time deposits, as well as FHLB long-term debt and FRB advances. During the year ended December 31, 2022, the cost to fund interest earning assets with interest bearing liabilities increased two basis points, to 0.60%, primarily due to the increase in market interest rates and competitive pricing pressures in the 2022 period. The net interest margin, on a fully tax equivalent basis, increased from 2.83% for the year ended December 31, 2021 to 3.10% for the year ended December 31, 2022.

A loan loss provision expense of $455,000 was recorded for the year ended December 31, 2022, compared to a provision credit of $769,000 for the year ended December 31, 2021. Loan growth of 15.8% as of December 31, 2022 compared to December 31, 2021 was a factor in the increase in the loan loss provision for the year ended December 31, 2022. Additionally, while Juniata continued to experience favorable asset quality trends and net recoveries during the year ended December 31, 2022, elevated qualitative risk factors were considered in the allowance for loan loss analysis for certain loan segments due to the continued uncertainty in the economy and the potential for a recession as inflation remains prevalent.

Non-interest income of $5.2 million for the year ended December 31, 2022 was $71,000 higher than the year ended December 31, 2021, an increase of 1.4%. Most significantly impacting the comparative year end periods was a $1.5 million loss on sales and calls of securities in the 2022 period due to the execution of a balance sheet and regulatory capital management strategy. Additionally, the value of equity securities during the year ended December 31, 2022 decreased by $219,000 compared to the year ended December 31, 2021 due to declines in bank stock market values. These decreases in non-interest income were offset by $1.2 million in gains from the termination

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of two derivatives contracts, recorded in other non-interest income, as well as increases of $380,000 in life insurance proceeds, $117,000 in customer service fees and $99,000 in fees derived from loan activity in the 2022 period.

Non-interest expense was $19.9 million for the year ended December 31, 2022 compared to $20.4 million for the year ended December 31, 2021, a decrease of 2.1%. Most significantly impacting non-interest expense in the comparative year end periods was a decline of $691,000 in long-term debt prepayment penalty as $15.0 million in higher-cost FHLB long-term debt was repaid in 2021, as well as a $111,000 decrease in data processing expense for the year ended December 31, 2022 compared to the year ended December 31, 2021. Partially offsetting these declines in non-interest expense were increases of $95,000 in FDIC insurance premiums and $84,000 in employee benefits expense due to increased medical claims expense.

The income tax provision increased by $358,000 for the year ended December 31, 2022, due to higher taxable income compared to the same period in 2021.

***Financial Results for the Quarter***

Annualized return on average assets for the three months ended December 31, 2022 was 1.03%, an increase of 58.5%, compared to 0.65% for the three months ended December 31, 2021. Annualized return on average equity for the three months ended December 31, 2022 was 23.93%, an increase of 222.5%, compared to 7.42% for the three months ended December 31, 2021.

Net interest income was $6.2 million for the three months ended December 31, 2022 compared to $5.8 million for the three months ended December 31, 2021. Average earning assets increased $12.8 million, or 1.7%, to $783.1 million for the three months ended December 31, 2022, compared to the same period in 2021. The increase was due to an increase of $59.0 million, or 14.4%, in average loans driven by strong demand in the fourth quarter, which was partially offset by a $43.0 million, or 12.1%, decrease in average investment securities. The yield on earning assets increased 42 basis points, to 3.77%, for the three months ended December 31, 2022 compared to same period in 2021, while the cost to fund interest earning assets with interest bearing liabilities increased 37 basis points, to 0.88%, over the same period, primarily due to the increase in market interest rates as both the prime rate and federal funds target range increased by 425 basis points in the 2022 period. During the three months ended December 31, 2022, average interest bearing liabilities increased by $15.4 million, or 2.8%, compared to the comparable 2021 period, mainly due to an increase in average FHLB overnight and short-term borrowings, as well as savings deposits, which was partially offset by declines in interest bearing demand and time deposits as well as long-term debt. The net interest margin, on a fully tax equivalent basis, increased from 3.02% for the three months ended December 31, 2021 to 3.13% for the three months ended December 31, 2022.

A loan loss provision expense of $105,000 was recorded in the three months ended December 31, 2022 compared to a provision credit of $233,000 in the comparable 2021 period. Loan growth, coupled with the continued uncertainty in the economy and the potential for a recession as inflation remained prevalent, resulted in an increased loan loss provision despite favorable asset quality trends during the three months ended December 31, 2022.

Non-interest income was $1.3 million in each of the three month periods ended December 31, 2022 and 2021. Variances impacting non-interest income in the comparative three month periods were a decrease of $36,000 on the loss on sales and calls of securities and an increase of $30,000 in the value of equity securities during the three months ended December 31, 2022 compared to the same 2021 period. These variances were partially offset by decreases of $32,000 in debit card fee income and $20,000 in fees derived from loan activity during the three months ended December 31, 2022 compared to the three months ended December 31, 2021.

Non-interest expense was $5.1 million for the three months ended December 31, 2022, compared to $6.0 million for the three months ended December 31, 2021, a decrease of 15.5%. Most significantly impacting non-interest expense in the comparative three month periods was a $691,000 decrease in long-term debt prepayment penalty as higher-cost FHLB long-term debt was repaid in 2021. Also contributing to the decline in non-interest expense for the three months ended December 31, 2022 compared to the 2021 period was a decrease of $192,000 in employee compensation and benefits expense primarily due to the retirement of an executive officer, as well as a decrease in split dollar insurance expense due to the passing of a former executive officer in 2022 and a decrease of $127,000 in the line item taxes, other than income, due to a decrease in PA Shares Tax expense.

An income tax provision of $154,000 was recorded in the three months ended December 31, 2022, compared to an income tax provision credit of $18,000 recorded for the three months ended December 31, 2021, due to greater taxable income recorded for the 2022 period.

***Financial Condition***

Total assets as of December 31, 2022 were $830.9 million, an increase of $20.4 million, or 2.5%, compared to total assets of $810.5 million at December 31, 2021. Over this period, outstanding loans increased by $66.2 million, or 15.8%, due to increased loan demand, while debt securities decreased by $52.3 million, or 15.6%, due to several factors, including a large unrealized loss in the portfolio because of the current market interest rate environment, paydowns on mortgage-backed securities and security sales. As of December

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31, 2022, short-term borrowings and repurchase agreements increased by $51.5 million, or 1,218.0%, compared to December 31, 2021, due to the repayment of $20.0 million in brokered interest bearing demand deposits as Juniata resumed to using $20.0 million in FHLB short-term borrowings to supplement core deposits to satisfy funding needs in lieu of brokered interest bearing demand deposits. Additionally, overnight borrowings increased between periods to meet funding needs, as did the balance of repurchase agreements due to the addition of a new customer relationship using this funding product in 2022. Total stockholders' equity declined $34.3 million as of December 31, 2022 compared to December 31, 2021 primarily due to a $38.3 million increase in unrealized losses on debt securities, which was partially offset by a $3.9 million, or 8.3%, increase in retained earnings. Juniata transferred $212.3 million in debt securities from the available for sale to the held to maturity classification in the fourth quarter of 2022 to defend against additional increases in unrealized losses on debt securities being recognized in accumulated other comprehensive income due to the changing market interest rate environment.

***Subsequent Event***

On January 17, 2023, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on February 14, 2023, payable on March 1, 2023.

Management considers subsequent events occurring after the statement of condition date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company's consolidated financial statements with the Securities and Exchange Commission. Accordingly, the financial information in this release is subject to change.

The Juniata Valley Bank, the principal subsidiary of Juniata Valley Financial Corp., is headquartered in Mifflintown, Pennsylvania, with fifteen community offices located in Juniata, Mifflin, Perry, Huntingdon, McKean and Potter Counties. More information regarding Juniata Valley Financial Corp. and The Juniata Valley Bank can be found online at www.JVBonline.com. Juniata Valley Financial Corp. trades through the OTCQX Best Market under the symbol JUVF.

**Forward-Looking Information**

\*This press release may contain "forward looking" information as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the current views of Juniata's management with respect to, among other things, future events and Juniata's financial performance. When words such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or similar expressions are used in this release, Juniata is making forward-looking statements. Such information is based on Juniata's current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business, many of which, by their nature, are inherently uncertain and beyond the control of Juniata. These statements are not historical facts or guarantees of future performance, events or results and are subject to risks, assumptions and uncertainties that are difficult to predict. If one or more events related to these or other risks or uncertainties materializes, or if underlying assumptions prove to be incorrect, actual results may differ materially from this forward-looking information. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and many factors could affect future financial results. Juniata undertakes no obligation to publicly update or revise forward looking information, whether because of new or updated information, future events, or otherwise. For a more complete discussion of certain risks and uncertainties affecting Juniata, please see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements" set forth in the Juniata's filings with the Securities and Exchange Commission.

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**Financial Statements**

**Juniata Valley Financial Corp. and Subsidiary**

**Consolidated Statements of Financial Condition (Unaudited)**

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| | | |
|:---|:---|:---|
| *(Dollars in thousands, except share data)* |  |  |
|  | **December 31, 2022** | **December 31, 2021** |
| **ASSETS** |  |  |
| Cash and due from banks | $10856 | $12928 |
| Interest bearing deposits with banks | 143 | 598 |
| &nbsp;&nbsp;Cash and cash equivalents | 10999 | 13526 |
| Interest bearing time deposits with banks |  | 735 |
| Equity securities | 1056 | 1124 |
| Debt securities available for sale | 73536 | 335424 |
| Debt securities held to maturity (fair value 2022 - $209,887, 2021 - $0) | 209565 |  |
| Restricted investment in bank stock | 3666 | 2116 |
| Total loans | 484512 | 418303 |
| &nbsp;&nbsp;Less: Allowance for loan losses | (4027) | (3508) |
| Total loans, net of allowance for loan losses | 480485 | 414795 |
| Premises and equipment, net | 8190 | 8371 |
| Other real estate owned |  | 87 |
| Bank owned life insurance and annuities | 15197 | 16852 |
| Investment in low income housing partnerships | 1507 | 2306 |
| Core deposit and other intangible assets | 121 | 175 |
| Goodwill | 9047 | 9047 |
| Mortgage servicing rights | 92 | 120 |
| Deferred tax asset | 11838 | 1594 |
| Accrued interest receivable and other assets | 5576 | 4246 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $830875 | $810518 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest bearing | $199131 | $182022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest bearing | 512381 | 526425 |
| Total deposits | 711512 | 708447 |
| &nbsp;&nbsp;Short-term borrowings and repurchase agreements | 55710 | 4227 |
| &nbsp;&nbsp;Long-term debt | 20000 | 20000 |
| &nbsp;&nbsp;Other interest bearing liabilities | 1011 | 1568 |
| &nbsp;&nbsp;Accrued interest payable and other liabilities | 5693 | 4986 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 793926 | 739228 |
| Commitments and contingent liabilities |  |  |
| **Stockholders' Equity:** |  |  |
| &nbsp;&nbsp;Preferred stock, no par value: Authorized - 500,000 shares, none issued |  |  |
| &nbsp;&nbsp;Common stock, par value $1.00 per share: Authorized 20,000,000 shares; Issued - 5,151,279 shares at December 31, 2022 and December 31, 2021; Outstanding - 5,003,059 shares at December 31, 2022 and 4,988,542 shares at December 31, 2021 | 5151 | 5151 |
| Surplus | 24986 | 25008 |
| Retained earnings | 51217 | 47298 |
| Accumulated other comprehensive loss | (41867) | (3365) |
| Cost of common stock in Treasury: 148,220 shares at December 31, 2022; 162,737 shares at December 31, 2021 | (2538) | (2802) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 36949 | 71290 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $830875 | $810518 |

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**Juniata Valley Financial Corp. and Subsidiary**

**Consolidated Statements of Income (Unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
| *(Dollars in thousands, except share and per share data)* | **December 31,**  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| **Interest income:** |  |  |  |  |
| &nbsp;&nbsp;Loans, including fees | $5781 | $5091 | $21227 | $19462 |
| &nbsp;&nbsp;Taxable securities  | 1598 | 1369 | 6077 | 4912 |
| &nbsp;&nbsp;Tax-exempt securities | 38 | 42 | 155 | 154 |
| &nbsp;&nbsp;Other interest income | 16 | 6 | 96 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total interest income** | 7433 | 6508 | 27555 | 24553 |
| **Interest expense:** |  |  |  |  |
| &nbsp;&nbsp;Deposits | 885 | 501 | 2577 | 2272 |
| &nbsp;&nbsp;Short-term borrowings and repurchase agreements | 257 | 20 | 362 | 90 |
| &nbsp;&nbsp;FRB advances |  |  |  | 18 |
| &nbsp;&nbsp;Long-term debt | 119 | 191 | 471 | 832 |
| &nbsp;&nbsp;Other interest bearing liabilities | 6 | 1 | 12 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total interest expense** | 1267 | 713 | 3422 | 3218 |
| **Net interest income** | 6166 | 5795 | 24133 | 21335 |
| &nbsp;&nbsp;Provision for loan losses | 105 | (233) | 455 | (769) |
| **Net interest income after provision for loan losses** | 6061 | 6028 | 23678 | 22104 |
| **Non-interest income:** |  |  |  |  |
| &nbsp;&nbsp;Customer service fees | 359 | 362 | 1472 | 1355 |
| &nbsp;&nbsp;Debit card fee income | 436 | 468 | 1703 | 1755 |
| &nbsp;&nbsp;Earnings on bank-owned life insurance and annuities | 55 | 60 | 219 | 246 |
| &nbsp;&nbsp;Trust fees | 94 | 107 | 472 | 445 |
| &nbsp;&nbsp;Commissions from sales of non-deposit products | 82 | 97 | 384 | 368 |
| &nbsp;&nbsp;Fees derived from loan activity | 88 | 108 | 540 | 441 |
| &nbsp;&nbsp;Mortgage banking income | 10 | 15 | 34 | 41 |
| &nbsp;&nbsp;Gain (loss) on sales and calls of securities | (1) | (37) | (1453) | 21 |
| &nbsp;&nbsp;Change in value of equity securities | 42 | 12 | (68) | 151 |
| &nbsp;&nbsp;Gain from life insurance proceeds |  |  | 380 |  |
| &nbsp;&nbsp;Other non-interest income | 92 | 82 | 1542 | 331 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest income** | 1257 | 1274 | 5225 | 5154 |
| **Non-interest expense:** |  |  |  |  |
| &nbsp;&nbsp;Employee compensation expense | 2098 | 2238 | 8445 | 8414 |
| &nbsp;&nbsp;Employee benefits | 512 | 564 | 2370 | 2286 |
| &nbsp;&nbsp;Occupancy | 336 | 324 | 1284 | 1259 |
| &nbsp;&nbsp;Equipment | 188 | 178 | 734 | 743 |
| &nbsp;&nbsp;Data processing expense | 688 | 728 | 2582 | 2693 |
| &nbsp;&nbsp;Professional fees | 213 | 232 | 800 | 841 |
| &nbsp;&nbsp;Taxes, other than income | 133 | 260 | 503 | 574 |
| &nbsp;&nbsp;FDIC Insurance premiums | 98 | 79 | 405 | 310 |
| &nbsp;&nbsp;Gain on other real estate owned | (21) | (15) | (28) | (64) |
| &nbsp;&nbsp;Amortization of intangible assets | 13 | 17 | 54 | 66 |
| &nbsp;&nbsp;Amortization of investment in low-income housing partnerships | 199 | 199 | 799 | 799 |
| &nbsp;&nbsp;Long-term debt prepayment penalty |  | 691 |  | 691 |
| &nbsp;&nbsp;Other non-interest expense | 605 | 492 | 1993 | 1758 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-interest expense** | 5062 | 5987 | 19941 | 20370 |
| **Income before income taxes**  | 2256 | 1315 | 8962 | 6888 |
| &nbsp;&nbsp;Income tax provision | 154 | (18) | 642 | 284 |
| **Net income** | $2102 | $1333 | $8320 | $6604 |
| **Earnings per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.42 | $0.27 | $1.66 | $1.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.42 | $0.27 | $1.66 | $1.32 |

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Michael Wolf

Email: michael.wolf@jvbonline.com

Phone: (717) 436-7203

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