Exhibit 99.1

Juniata Valley Financial Corp. Announces First Quarter 2020 Results

Mifflintown, PA, May 6, 2020 (GLOBE NEWSWIRE) --

Juniata Valley Financial Corp. (OTC Pink: JUVF) (“Juniata”), announced net income for the quarter ended March 31,  2020 of $1.0 million, compared to net income of $1.4 million for the quarter ended March 31,  2019. Earnings per share, basic and diluted, were  $0.20 during the three months ended March 31, 2020 compared to $0.28 during the three months ended March 31, 2019. The decline in earnings is primarily due to higher provisions for loan losses, resulting primarily from the anticipated economic impact of the COVID-19 pandemic.

President and Chief Executive Officer, Marcie A. Barber stated, “We are certainly concerned about the short term and potentially long-term economic damage resulting from business disruptions mandated to reduce the impact of COVID-19. But we at Juniata, are determined to serve our customers through creative and accommodating delivery systems, which protect our customers and employees. We are delighted to have actively participated in the SBA’s PPP loan program, providing assistance to hundreds of small business clients. As we adapted quickly to necessary changes in our workflow, we identified processes we will maintain and leverage for enhanced profitability and customer service after the storm has passed.”

As stated in Juniata’s Current Report on Form 8-K filed on March 27, 2020, Juniata has implemented several ongoing initiatives to address the impact of the COVID-19 pandemic on Juniata and its customers, employees and markets. Juniata continues its proactive outreach and responsiveness to the needs of customers for short-term payment relief. As of March 31, 2020, Juniata approved interest and/or principal payment deferrals on eight loans totaling $0.5 million for individuals and businesses affected by the economic impacts of COVID-19. None of the borrowers approved for these designated deferrals were delinquent as of March 31, 2020 and the modification terms are short-term, thus the loan modifications are not considered to be troubled-debt restructurings. Subsequently, as of May 6, 2020, 203 additional short-term deferrals were granted totaling $75.8 million.

Juniata began participating in the federal Paycheck Protection Program (“PPP”) as established under the CARES Act in April 2020.  As of May 6, 2020, Juniata has approved 422 PPP loans through the Small Business Administration (“SBA”), for a total of $30.9 million.

Annualized return on average assets for the three months ended March 31, 2020 was 0.62%, compared to 0.90% for the three months ended March 31, 2019. Annualized return on average equity for the three months ended March 31, 2020 was 5.54%, compared to 8.38% for the three months ended March 31, 2019.

Net interest income was $5.0 million for the first quarter of 2020 compared to $5.2 million for the first quarter of 2019. Average earning assets increased 5.9% to $610.0 million, with average investment securities increasing by $57.2 million, partially offset by a decline in average loan balances of $30.8 million in the first quarter of 2020 compared to the comparable 2019 period. The yield on earning assets declined 30 basis points, to 4.02%, during the three months ended March 31, 2020 compared to the same period in 2019, while the cost to fund interest bearing assets with interest bearing liabilities over the same period increased 2 basis points, to 1.01%. The yields on earning assets and cost of funds were affected by changes in the prime rate and the federal funds target rate between the first quarter of 2019 and the first quarter of 2020. Net interest margin, on a fully tax equivalent basis, decreased from 3.65% during the three months ended March 31, 2019 to 3.32% during the three months ended March 31, 2020. 

The provision for loan losses increased  $0.3 million in the first quarter of 2020 in comparison to the first quarter of 2019.  Due to the change in the economic environment resulting from the COVID-19 pandemic, Juniata increased the qualitative risk factors for all loan segments in the loan portfolio in its allowance for loan loss analysis in the first quarter of 2020.

Non-interest income in the first quarter of 2020 was $1.0 million compared to $1.1 million in the first quarter of 2019, a decline of 9.1%. Most significantly impacting non-interest income in the comparative three month periods was the decline in the value of equity securities of $0.2 million in the first quarter of 2020 compared to the first quarter of 2019. Partially offsetting this decline was a $0.1 million increase in the net gains on sales of securities in the first quarter of 2020 compared to the comparable 2019 period.

Non-interest expense was $4.8 million for both the three months ended March 31, 2020 and the three months ended March 31, 2019. In the first quarter of 2020, other non-interest expense declined $0.1 million due to a decrease in expenses associated with the termination

of the Company’s defined benefit plan recorded in the first quarter of 2019, since no such expenses were recorded in the comparable 2020 period.  In the first quarter of 2020, declines were also recorded in occupancy expense due to lower maintenance costs, as well as in professional fees and FDIC insurance. Offsetting these declines during the three months ended March 31, 2020 compared to the comparative 2019 period were increases in employee compensation, data processing, and equipment expenses.

An income tax benefit of $0.2 million was recorded in the first quarter of 2020, an increase in the amount of $0.1 million compared to the first quarter of 2019, primarily due to lower taxable income in the 2020 period. Additionally, the Company was able to take advantage of a provision in the CARES Act allowing carryback of net operating losses; the carryback resulted in the reversal of a portion of the deferred tax asset carried from the Liverpool Community Bank acquisition in 2018 in the amount of $0.1 million, recorded as a credit to income tax expense in the first quarter of 2020.

Total assets at March  31, 2020 were $673.8 million, an increase of $3.2 million compared to total assets of $670.6 million at December 31, 2019.  Comparing asset balances at March 31, 2020 and December 31, 2019, total cash and cash equivalents increased by $25.1 million, while debt securities available for sale and loans declined by $10.0 million and $10.6 million, respectively. Over the same period, deposits increased by $10.0 million, with growth in both non-interest bearing and interest bearing deposits. Capital increased by $3.7 million over the period primarily due to an increase in the fair value of investment securities in accumulated other comprehensive income, while short-term borrowings declined by $10.3 million. 

On April 21, 2020, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on May 18, 2020, payable on June 1, 2020. 

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 when filed 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 nineteen 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 Pink Open 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. When words such as “believes”, “expects”, “anticipates” 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. These statements are not historical facts or guarantees of future performance, events or results. Such statements involve potential risks and uncertainties and, accordingly, actual results may differ materially from this forward-looking information. Many factors could affect future financial results. Juniata undertakes no obligation to publicly update or revise forward looking information, whether as a result 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. In addition, the COVID-19 pandemic is having an adverse impact on Juniata, its customers and the communities it serves and may adversely affect Juniata’s business, results of operations and financial condition for an indefinite period of time. The Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 will address risks and uncertainties associated with the COVID-19 pandemic.

Financial Statements

Juniata Valley Financial Corp. and Subsidiary

Consolidated Statements of Financial Condition

Juniata Valley Financial Corp. and Subsidiary

Consolidated Statements of Income (Unaudited)

JoAnn McMinn

Email: joann.mcminn@jvbonline.com

Phone: (717) 436-3206