JUNIATA VALLEY FINANCIAL CORP
For the period ended Jun 30, 2025. Filed Aug 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 13, 2025
JUVFStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001558370-25-007518
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001558370-25-011328
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 104 current paragraphs.
52 unchanged; 23 reworded; 23 added; 5 removed; 3 previous and 6 current paragraphs rearranged.
Tables are not compared: 49 previous and 58 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Total assets as of June 30, 2025 were $866.4 million, an increase of $17.6 million, or 2.1%, compared to total assets of $848.9 million at December 31, 2024. Cash and cash equivalents increased by $1.1 million, or 10.1%, as of June 30, 2025 compared to December 31, 2024, while total debt and equity securities decreased by $4.9 million, or 1.9%, over the same period as cash flows were used for funding needs rather than being reinvested into the investment portfolio. Total loans increased by $22.5 million, or 4.2%, as of June 30, 2025 compared to year-end 2024 mainly due to increases in commercial loans. Total deposits increased by $11.4 million, or 1.5%, as of June 30, 2025 compared to December 31, 2024 due to an increase in interest bearing deposits as interest bearing demand, savings and time deposits all increased between comparative periods offsetting a decrease in non-interest bearing demand deposits. Short-term borrowings and repurchase agreements increased by $7.5 million, or 17.7%, as of June 30, 2025 compared to year-end 2024 primarily due to an increase in overnight borrowings, which were used to replace a FHLB long-term advance that matured in June 2025, resulting in the $5.0 million, or 100.0%, decline in long-term debt between comparative periods. At June 30, 2025, total
Current report
Net interest income was $6.2 million for the three months ended June 30, 2025, an increase of $397,000, or 6.9%, compared to $5.8 million for the three months ended June 30, 2024.
Current report
Average interest earning assets decreased 1.0%, to $849.8 million, for the three months ended June 30, 2025 compared to the same period in 2024, due to a decrease of $18.3 million, or 5.8%, in average investment securities, which was partially offset by an $11.2 million, or 2.1%, increase in average loans. Average interest bearing liabilities decreased by $11.3 million, or 1.8%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This decrease was primarily due to a decline of $28.1 million, or 38.1%, in average borrowings and other interest bearing liabilities, which was partially offset by increases in average interest bearing demand and time deposits of $4.9 million, or 2.4%, and $14.9 million, or 7.3%, respectively, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Current report
Non-interest income was $1.5 million for the three months ended June 30, 2025, a decrease of $2,000, or 0.1%, compared to the three months ended June 30, 2024. Most significantly impacting non-interest income in the comparative three month periods were decreases of $40,000 in commissions from sales of non-deposit products and $32,000 in trust fees. Partially offsetting these declines were increases of $31,000 in the change in value of equity securities and $44,000 in other non-interest income primarily due to recording an IRS refund and an increase in online banking fees in the three months ended June 30, 2025 compared the three months ended June 30, 2024.
Current report
As a percentage of average assets, annualized non-interest income was 0.69% for both the three months ended June 30, 2025 and June 30, 2024.
Current report
Non-interest expense was $5.1 million for both the three months ended June 30, 2025 and June 30, 2024. Most significantly impacting non-interest expense in the comparative three month periods was a decrease of $134,000 in employee compensation expense, due primarily to the 2024 expenses having been elevated due to overtime pay from the 2024 core conversion and actions taken to optimize staffing levels. Partially offsetting this decline were increases of $57,000 in taxes, other than income, due to an increase in Pennsylvania Shares Tax expense and $176,000 in other non-interest expense due primarily to an increase in the provision for unfunded commitments in the three months ended June 30, 2025.
Current report
As a percentage of average assets, annualized non-interest expense was 2.36% for both the three months ended June 30, 2025 and June 30, 2024.
Current report
Comparison of the Six Months Ended June 30, 2025 and 2024
Current report
Operations Overview:
Current report
Net income was $3.9 million for the six months ended June 30, 2025, an increase of $818,000, or 26.4%, compared to the six months ended June 30, 2024. Basic and diluted earnings per share was $0.78 for the six months ended June 30, 2025, an increase of 25.8%, compared to basic and diluted earnings per share of $0.62 for the comparable 2024 period.
Current report
Net Interest Income:
Current report
Net interest income was $12.0 million during the six months ended June 30, 2025, an increase of $680,000, or 6.0%, compared to $11.3 million recorded during the six months ended June 30, 2024.
Current report
The net interest margin, on a fully tax equivalent basis, increased from 2.68% during the six months ended June 30, 2024, to 2.89% during the six months ended June 30, 2025.
Current report
Notes:
Current report
Provision for Loan Losses:
Current report
Juniata recorded a provision for credit losses of $453,000 in the six months ended June 30, 2025 compared to a provision for credit losses of $239,000 in the six months ended June 30, 2024. The increase in the provision for credit losses between six month periods was primarily due to growth in outstanding loans, as well as a downturn of the projected economic factors used as loss drivers in the model.
Current report
Non-interest Income:
Current report
Non-interest income was $2.8 million for the six months ended June 30, 2025, an increase of $48,000, or 1.7%, compared to the six months ended June 30, 2024. Most significantly impacting the comparative six month periods was an increase of $99,000 in customer service fees and the receipt of $20,000 in life insurance proceeds in the 2025 period. These increases were partially offset by decreases of $75,000 in fees derived from loan activity, primarily due to a decline in title insurance commissions, as well as $41,000 in commissions from sales of non-deposit products in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current report
As a percentage of average assets, annualized non-interest income was 0.66% in the first six months of 2025 compared to 0.64% in the comparable 2024 period.
Current report
Non-interest Expense:
Current report
As a percentage of average assets, annualized non-interest expense was 2.28% in the six months ended June 30, 2025 compared to 2.38% in the six months ended June 30, 2024.
Current report
Provision for income taxes:
Current report
An income tax provision of $700,000 was recorded during the six months ended June 30, 2025 compared to an income tax provision of $497,000 recorded during the six months ended June 30, 2024. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit was $165,000 in both the six months ended June 30, 2025 and June 30, 2024. The tax credit lowered the effective tax rate from 18.7% to 15.2% during the six months ended June 30, 2025 compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.4% to 13.8%.
Removed paragraphs (5)
Previous report
A provision for credit losses of $104,000 was recorded for the three months ended March 31, 2025, compared to $120,000 for the three months ended March 31, 2024.
Previous report
Net interest income was $5.8 million for the three months ended March 31, 2025, an increase of $283,000, or 5.1%, compared to $5.5 million for the three months ended March 31, 2024.
Previous report
Non-interest income was $1.3 million for the three months ended March 31, 2025, an increase of $50,000, or 3.9%, compared to the three months ended March 31, 2024. Most significantly impacting non-interest income in the comparative three month periods were increases of $89,000 in customer service fees due to an increase in the collection of overdraft and checking account fees, as well as $24,000 in trust fees. Partially offsetting these increases between the comparative three month periods was a decline of $56,000 in fees derived from loan activity due to decreases in title insurance commissions, a derivative credit adjustment and loan referral fees in the 2025 period.
Previous report
As a percentage of average assets, annualized non-interest income was 0.63% for the three months ended March 31, 2025 compared to 0.60% for the three months ended March 31, 2024.
Previous report
As a percentage of average assets, annualized non-interest expense was 2.20% for the three months ended March 31, 2025 compared to 2.40% for the three months ended March 31, 2024.
Reworded paragraphs (23)
Previous wording
The following discussion relates to the consolidated financial condition of the Company as of March 31, 2025, compared to December 31, 2024, and the consolidated results of operations for the three months ended March 31, 2025, compared to the same period in 2024. This discussion should be read in conjunction with the interim consolidated financial statements and related notes included herein.
Current wording
The fol6lowing discussion relates to the consolidated financial condition of the Company as of June 30, 2025, compared to December 31, 2024, and the consolidated results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024. This discussion should be read in conjunction with the interim consolidated financial statements and related notes included herein.
Previous wording
Total assets as of March 31, 2025 were $854.0 million, an increase of $5.1 million, or 0.6%, compared to total assets of $848.9 million at December 31, 2024. Cash and cash equivalents increased $2.5 million, or 22.8%, while total loans increased by $5.1 million, or 1.0%, as of March 31, 2025 compared to December 31, 2024. Total deposits increased by $728,000, or 0.1%, as of March 31, 2025 compared to December 31, 2024, while short-term borrowings and repurchase agreements increased by $1.8 million, or 4.4%, primarily due to increased balances in repurchase agreement accounts. At March 31, 2025, total stockholders’ equity increased $2.7 million, or 5.8%, compared to year-end 2024 due to an increase in retained earnings and a decline in other comprehensive losses.
Current wording
stockholders’ equity increased $4.9 million, or 10.4%, compared to year-end 2024 primarily due to an increase in retained earnings and a decline in accumulated other comprehensive losses.
Previous wording
A summary of the activity in the allowance for credit losses for the three month periods ended March 31, 2025 and 2024, respectively, is presented below.
Current wording
A summary of the activity in the allowance for credit losses for the six month periods ended June 30, 2025 and 2024, respectively, is presented below.
Previous wording
As of March 31, 2025, there were $13.3 million of loans classified as special mention compared to $23.0 million at December 31, 2024, $1.8 million of loans classified as substandard at both March 31, 2025 and December 31, 2024, and $140,000 of loans classified as doubtful at March 31, 2025 compared to $72,000 at December 31, 2024. The decrease in special mention loans between periods was primarily due to the upgrade of two commercial relationships, while the
Current wording
As of June 30, 2025, there were $13.0 million of loans classified as special mention compared to $23.0 million at December 31, 2024, $1.2 million of loans classified as substandard at June 30, 2025 compared to $1.8 million at December 31, 2024, and $138,000 of loans classified as doubtful at June 30, 2025 compared to $72,000 at December 31, 2024. The decrease in special mention loans between periods was primarily due to the upgrade of two commercial relationships, while the
Previous wording
Juniata adopted ASU 2016-13 on January 1, 2023 to calculate the ACL. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The ACL requires a projection of credit losses estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and not unconditionally cancellable by the Company. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
Current wording
Juniata adopted ASU 2016-13 on January 1, 2023 to calculate the ACL. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The ACL requires a projection of credit losses estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a loan modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and not unconditionally cancellable by the Company. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
Previous wording
The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The company has identified the following portfolio segments: commercial, financial and agricultural, real estate – commercial,
Current wording
The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The company has identified the following portfolio segments: commercial, financial and agricultural, real estate – commercial, real estate - construction: 1-4 family residential construction, real estate - construction: other construction, real estate – mortgage, obligations of states and political subdivisions and personal loans.
Previous wording
The quantitative general allowance was $3.1 million at March 31, 2025 and $3.0 million at December 31, 2024.
Current wording
The quantitative general allowance was $3.4 million at June 30, 2025 and $3.0 million at December 31, 2024.
Previous wording
The qualitative analysis resulted in a general reserve of $3.1 million at March 31, 2025 and December 31, 2024.
Current wording
The qualitative analysis resulted in a general reserve of $3.2 million at June 30, 2025 and $3.1 million at December 31, 2024.
Previous wording
The determination of the ACL is complex, and the Company makes decisions on the effects of matter that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgements as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by factors prevailing at that point in time along with future forecasts.
Current wording
The determination of the ACL is complex, and the Company makes decisions on the effects of matters that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgements as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by factors prevailing at that point in time along with future forecasts.
Previous wording
Net income for the three months ended March 31, 2025 was $2.0 million, an increase of $653,000, or 48.2%, compared to the three months ended March 31, 2024. Basic and diluted earnings per share was $0.40 for the three months ended March 31, 2025, an increase of 48.1%, compared to basic and diluted earnings per share of $0.27 for the comparable 2024 period.
Current wording
Net income for the three months ended June 30, 2025 was $1.9 million, an increase of $165,000, or 9.5%, compared to the three months ended June 30, 2024. Basic and diluted earnings per share was $0.38 for the three months ended June 30, 2025, an increase of 8.6%, compared to basic and diluted earnings per share of $0.35 for the comparable 2024 period.
Previous wording
Annualized return on average assets for the three months ended March 31, 2025 was 0.94%, compared to the annualized return on average assets of 0.63% for the same period in 2024. For the three months ended March 31, annualized return on average equity was 16.55% in 2025 compared to 13.38% in the 2024 period.
Current wording
Annualized return on average assets for the three months ended June 30, 2025 was 0.89%, compared to the annualized return on average assets of 0.81% for the same period in 2024. For the three months ended June 30, annualized return on average equity was 15.01% in 2025 compared to 16.38% in the 2024 period.
Previous wording
The net interest margin, on a fully tax equivalent basis, increased from 2.63% for the three months ended March 31, 2024 to 2.83% for the three months ended March 31, 2025.
Current wording
The net interest margin, on a fully tax equivalent basis, increased from 2.73% for the three months ended June 30, 2024 to 2.95% for the three months ended June 30, 2025.
Previous wording
Juniata recorded a provision for credit losses of $104,000 for the three months ended March 31, 2025 compared to a provision for credit losses of $120,000 for the three months ended March 31, 2024.
Current wording
Juniata recorded a provision for credit losses of $349,000 for the three months ended June 30, 2025 compared to a provision for credit losses of $119,000 for the three months ended June 30, 2024. The increase in the provision for credit losses between three month periods was primarily due to growth in outstanding loans and a downturn of the projected economic factors used as loss drivers in the model, and not because of deteriorated credit quality.
Previous wording
An income tax provision of $371,000 was recorded during the three months ended March 31, 2025 compared to an income tax provision of $201,000 recorded during the three months ended March 31, 2024. The increase between three month periods was mainly due to more taxable income recorded in the 2025 period. Juniata qualifies for a federal tax credit for an investment in a low-income housing partnerships. The tax credit was $82,000 for both the three months ended March 31, 2025 and March 31, 2024.
Current wording
An income tax provision of $329,000 was recorded during the three months ended June 30, 2025 compared to an income tax provision of $296,000 recorded during the three months ended June 30, 2024. The increase between three month periods was mainly due to more taxable income being recorded in the 2025 period. Juniata qualifies for a federal tax credit for an investment in a low-income housing partnerships. The tax credit was $83,000 for both the three months ended June 30, 2025 and June 30, 2024. For the three months ended June 30, 2025, the tax credit lowered the effective tax rate from 18.4% to 14.7% compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.6% to 14.5%.
Previous wording
Average interest earning assets decreased 1.7%, to $842.6 million, for the three months ended March 31, 2025 compared to the same period in 2024, due to a decrease of $18.2 million, or 5.7%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used for funding needs rather than being reinvested into the securities portfolio. Average interest bearing liabilities decreased by $16.1 million, or 2.6%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This decrease was primarily due to a decline of $23.9 million, or 29.9%, in average borrowings and other interest bearing liabilities, which was partially offset by an increase in average time deposits of $17.3 million, or 8.7%, for the three months end March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Average earning assets decreased $11.6 million, or 1.3%, to $846.3 million, during the six months ended June 30, 2025 compared to the same period in 2024, due primarily to a decrease of $18.2 million, or 5.8%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used for funding needs rather than being reinvested into the securities portfolio. This decline was partially offset by a $7.9 million, or 1.5%, increase in average loans over the same six month periods. Average interest bearing liabilities decreased by $13.6 million, or 2.2%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This decrease was primarily due to a decline of $26.0 million, or 33.9%, in average borrowings and other interest bearing liabilities, which was partially offset by an increase in average time deposits of $16.2 million, or 8.0%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Previous wording
The yield on earning assets increased 19 basis points, to 4.42%, for the three months ended March 31, 2025 compared to same period last year driven by an increase in loan yields of 24 basis points. The cost to fund interest earning assets with interest bearing liabilities increased two basis points, to 2.26%, due primarily to an 18 basis point increase in time deposit rates which was partially offset by a 100 basis point decline in the federal funds rate, which reduced borrowing costs between the three months ended March 31, 2025 and 2024.
Current wording
The yield on earning assets increased 17 basis points, to 4.46%, for the six months ended June 30, 2025 compared to same period last year driven by an increase in loan yields of 18 basis points, while the cost to fund interest earning assets with interest bearing liabilities decreased three basis points, to 2.24%.
Previous wording
Non-interest expense was $4.7 million for the three months ended March 31, 2025 compared to $5.2 million for the three months ended March 31, 2024, a decrease of 9.2%. Most significantly impacting non-interest expense in the comparative three month periods were decreases in employee compensation and benefits expenses of $233,000 and $99,000, respectively. The primary drivers for these declines were higher overtime pay incurred in connection with the March 2024 core conversion, optimizing staffing levels and a decrease in medical claims expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Also contributing to the decrease in non-interest expense between the comparative three month periods were decreases of $48,000 in professional fees and $34,000 in the provision for unfunded commitments recorded in other non-interest expense. Partially offsetting these decreases for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was an increase of $74,000 in equipment expense primarily due to an increase in office depreciation expense, as the 2025 period contained three full months of depreciation on new fixed assets purchased as a result of the core conversion in March 2024.
Current wording
Non-interest expense was $9.8 million for the six months ended June 30, 2025, a decrease of $507,000, or 4.9%, compared to the six months ended June 30, 2024. Most significantly impacting non-interest expense in the comparative six month periods were decreases in employee compensation and benefits expenses of $367,000 and $130,000, respectively. The primary drivers for these declines were decreases in employee salary expenses compared to the 2024 period, with the 2024 expenses having been elevated due to overtime pay from the 2024 core conversion and actions taken to optimize staffing levels, and employee benefits expense due to a decrease in medical claims expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Also contributing to the decrease in non-interest expense between the comparative six month periods was a decrease of $80,000 in professional fees. These decreases were partially offset by an increase of $91,000 in equipment expense primarily due to an increase in office depreciation expenses.
Previous wording
The Company is a member of the Federal Home Loan Bank of Pittsburgh for the purpose of providing short-term liquidity to supplement other sources of liability liquidity. During the three months ended March 31, 2025, overnight borrowings from the FHLB averaged $33.7 million. As of March 31, 2025, the Company had $27.8 million in short-term borrowings and $5.0 million in long-term debt with the Federal Home Loan Bank, with a remaining unused borrowing capacity of $207.3 million with the FHLB. These credit facilities are secured by qualifying loans and investment securities held in safekeeping at the FHLB.
Current wording
The Company is a member of the Federal Home Loan Bank of Pittsburgh for the purpose of providing short-term liquidity to supplement other sources of liability liquidity. During the six months ended June 30, 2025, overnight borrowings from the FHLB averaged $29.7 million. As of June 30, 2025, the Company had $33.0 million in short-term borrowings at the FHLB, with a remaining unused borrowing capacity of $203.9 million at the FHLB. Borrowings from the FHLB are secured by the Company’s qualifying loans at the FHLB.
Previous wording
As of March 31, 2025, the Company had no outstanding borrowings at the Federal Reserve with an unused borrowing capacity of $51.2 million.
Current wording
As of June 30, 2025, the Company had no outstanding borrowings at the Federal Reserve Bank with an unused borrowing capacity of $50.7 million.
Previous wording
In addition, the Company also has an unsecured line of credit with a correspondent bank totaling $11.0 million, of which no funds were drawn at March 31, 2025. Availability under this line of credit is tested at least annually to ensure the availability of funds.
Current wording
In addition, the Company also has an unsecured line of credit with a correspondent bank totaling $11.0 million, of which no funds were drawn at June 30, 2025.
Previous wording
At March 31, 2025, the Company had $16.3 million in funding derived from securities sold under agreements to repurchase (accounted for as collateralized financing transactions). This product is available through corporate cash management accounts for business customers, and provides the Company with the ability to pay interest on corporate checking accounts.
Current wording
At June 30, 2025, the Company had $16.7 million in funding derived from securities sold under agreements to repurchase (accounted for as collateralized financing transactions). This product is available through corporate cash management accounts for business customers and provides the Company with the ability to pay interest on corporate checking accounts.
Previous wording
As of March 31, 2025, the Company had $163.8 million outstanding in loan commitments and other unused lines of credit extended to its customers as compared to $145.0 million at December 31, 2024. As of March 31, 2025 and December 31,
Current wording
As of June 30, 2025, the Company had $127.6 million outstanding in loan commitments and other unused lines of credit extended to its customers as compared to $145.0 million at December 31, 2024. As of June 30, 2025 and December 31, 2024, the Company had $3.5 million and $4.2 million, respectively, of financial and performance letters of credit commitments outstanding. Commercial letters of credit as of June 30, 2025 and December 31, 2024 totaled $11.2 million and $10.9 million, respectively.
Previous wording
The Company’s principal source of funds for dividend payments is dividends received from the Bank. Certain regulatory restrictions exist regarding the ability of the Bank to transfer funds to the Company in the form of cash dividends, loans or advances. At March 31, 2025, $4.1 million in undistributed earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Company as dividends without prior regulatory approval, subject to regulatory capital requirements.
Current wording
The Company’s principal source of funds for dividend payments is dividends received from the Bank. Certain regulatory restrictions exist regarding the ability of the Bank to transfer funds to the Company in the form of cash dividends, loans or advances. At June 30, 2025, $4.6 million in undistributed earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Company as dividends without prior regulatory approval, subject to regulatory capital requirements.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
The yield on earning assets increased 14 basis points, to 4.50%, for the three months ended June 30, 2025 compared to same period last year, driven by an increase in loan yields of 11 basis points, while the cost to fund interest earning assets with interest bearing liabilities decreased eight basis points, to 2.21%.
Current report — wording carried from elsewhere
Annualized return on average assets for the six months ended June 30, 2025 was 0.92%, compared to 0.72% for the same period in 2024. For the six months ended June 30, annualized return on average equity was 15.76% in 2025 compared to 15.14% in 2024.
Current report — wording carried from elsewhere
Presented below are selected key ratios for the two periods:
Current report — wording carried from elsewhere
The discussion that follows further explains changes in the components of net income when comparing the six months ended June 30, 2025 to the six months ended June 30, 2024.
Current report — wording carried from elsewhere
The table below shows the net interest margin on a fully tax-equivalent basis for the six months ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
Management regularly reviews the adequacy of the allowance for loan losses and makes assessments as to specific loan impairment, charge-off expectations, general economic conditions in the Bank’s market area, specific loan quality and other factors. See the earlier discussion in the Financial Condition section explaining the information used to determine the provision.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
real estate - construction: 1-4 family residential construction, real estate - construction: other construction, real estate – mortgage, obligations of states and political subdivisions and personal loans.
Previous report — wording carried elsewhere
For the three months ended March 31, 2025, the tax credit lowered the effective tax rate from 19.0% to 15.6% compared to the same period in 2024, when the tax credit lowered the effective tax rate from 18.2% to 12.9%.
Previous report — wording carried elsewhere
2024, the Company had $4.0 million and $4.2 million, respectively, of financial and performance letters of credit commitments outstanding. Commercial letters of credit as of both March 31, 2025 and December 31, 2024 totaled $10.9 million.