Florence Nightingale: Ms. Barber, your company’s net income has decreased by over 18% compared to the same period last year. Can you explain what led to this decline?

Marcie A. Barber: Yes, Florence. Our net income has decreased from the record highs we achieved in the first quarter of 2022. This decline is due to higher funding costs resulting from rapid increases in market interest rates that exceeded our budgeted net income for the first quarter. However, despite this challenge, we are pleased to deliver solid operating results.

Florence Nightingale: You mentioned that your company has taken steps to strengthen its liquidity position as a precaution. Can you provide more information on this?

Marcie A. Barber: Of course, Florence. We have taken steps to ensure that we have adequate liquidity to cover any potential stress events. This includes maintaining a high level of cash and liquid assets on our balance sheet, reducing our short-term borrowings, and establishing access to additional sources of funding.

Florence Nightingale: Your company recently acquired Orrstown Bank’s Path Valley branch. Can you tell us about the opportunities this acquisition provides?

Marcie A. Barber: We are very excited about this acquisition, Florence. It provides us with a significant opportunity to expand our presence in an attractive market and to leverage our existing infrastructure to drive growth and profitability. Additionally, this acquisition will allow us to further diversify our loan and deposit portfolios, strengthen our relationships with existing customers, and deepen our market share.

Florence Nightingale: Ms. Barber, can you explain why your company’s net interest margin decreased by over 30 basis points compared to the same period last year?

Marcie A. Barber: Yes, the prime rate and federal funds target range rose by 450 basis points between March 31, 2022, and March 31, 2023. This affected rates on our interest-earning assets and, to a greater extent, our interest-bearing liabilities. In addition, we experienced a compression in our net interest margin due to an increase in funding costs and a decline in the average yield on our interest-earning assets.

Original Release: https://www.globenewswire.com/news-release/2023/04/25/2653873/0/en/Juniata-Valley-Financial-Corp-Announces-Results-for-the-Quarter-Ended-March-31-2023.html

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