Juniata Valley Financial (JUVF) 8-K Juniata Valley Financial Corp. Announces First Quarter Earnings for 2010 and Declares Quarterly Dividend

Exhibit 99.2

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Financial Condition
(Unaudited, Dollar amounts in thousands, except share data)

	March 31,			December 31,
	2010			2009
ASSETS
Cash and due from banks	$	8,729		$	18,613
Interest bearing deposits with banks		93			82
Federal funds sold		10,000			1,200
Cash and cash equivalents		18,822			19,895
Interest bearing time deposits with banks		1,345			1,420
Securities available for sale		74,973			77,356
Restricted investment in Federal Home Loan Bank (FHLB) stock		2,197			2,197
Investment in unconsolidated subsidiary		3,391			3,338
Total loans, net of unearned interest		311,663			311,630
Less: Allowance for loan losses		(2,863	)		(2,719	)
Total loans, net of allowance for loan losses		308,800			308,911
Premises and equipment, net		6,849			6,878
Other real estate owned		291			476
Bank owned life insurance and annuities		13,196			13,066
Core deposit intangible		288			299
Goodwill		2,046			2,046
Accrued interest receivable and other assets		6,581			6,227
Total assets	$	438,779		$	442,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	54,758		$	55,030
Interest bearing		319,873			322,367
Total deposits		374,631			377,397
Securities sold under agreements to repurchase		2,552			3,207
Long-term debt		5,000			5,000
Other interest bearing liabilities		1,152			1,146
Accrued interest payable and other liabilities		4,631			4,756
Total liabilities		387,966			391,506
Stockholders’ Equity:
Preferred stock, no par value:
Authorized — 500,000 shares, none issued		—			—
Common stock, par value $1.00 per share:
Authorized — 20,000,000 shares
Issued — 4,745,826 shares
Outstanding —
4,321,487 shares at March 31, 2010;
4,337,587 shares at December 31, 2009		4,746			4,746
Surplus		18,327			18,315
Retained earnings		36,799			36,478
Accumulated other comprehensive loss		(644	)		(805	)
Cost of common stock in Treasury:
424,339 shares at March 31, 2010;
408,239 shares at December 31, 2009		(8,415	)		(8,131	)
Total stockholders’ equity		50,813			50,603
Total liabilities and stockholders’ equity	$	438,779		$	442,109

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Income
(Unaudited)
(Dollar amounts in thousands, except share data)

	Three Months Ended
	March 31,
	2010			2009
Interest income:
Loans, including fees	$	5,036			5,289$
Taxable securities		233			308
Tax-exempt securities		275			281
Federal funds sold		1			2
Other interest income		9			56
Total interest income		5,554			5,936
Interest expense:
Deposits		1,519			1,878
Securities sold under agreements to repurchase		1			1
Short-term borrowings		1			1
Long-term debt		34			34
Other interest bearing liabilities		3			5
Total interest expense		1,558			1,919
Net interest income		3,996			4,017
Provision for loan losses		285			135
Net interest income after provision for loan losses		3,711			3,882
Noninterest income:
Trust fees		120			84
Customer service fees		382			372
Earnings on bank-owned life insurance and annuities		122			106
Commissions from sales of non-deposit products		96			108
Income from unconsolidated subsidiary		56			48
Gain on sale of securities		12			—
(Loss) Gain on sales of other assets		(1	)		6
Prior period income from insurance sales		—			323
Other noninterest income		236			195
Total noninterest income		1,023			1,242
Noninterest expense:
Employee compensation expense		1,286			1,286
Employee benefits		416			444
Occupancy		233			239
Equipment		119			162
Data processing expense		365			333
Director compensation		87			110
Professional fees		93			121
Taxes, other than income		130			128
FDIC Insurance premiums		147			88
Amortization of intangibles		11			11
Other noninterest expense		258			269
Total noninterest expense		3,145			3,191
Income before income taxes		1,589			1,933
Provision for income taxes		401			523
Net income	$	1,188		$	1,410
Earnings per share
Basic	$	0.27		$	0.32
Diluted	$	0.27		$	0.32
Cash dividends declared per share	$	0.20		$	0.19
Weighted average basic shares outstanding		4,330,136			4,340,633
Weighted average diluted shares outstanding		4,334,000			4,345,622

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited)
(Amounts in thousands, except share data)

	Three Months Ended March 31, 2010
	Number										Accumulated
	of										Other						Total
	Shares			Common				Retained			Comprehensive			Treasury			Stockholders’
	Outstanding			Stock		Surplus		Earnings			Loss			Stock			Equity
Balance at December 31, 2009		4,337,587		$	4,746	$	18,315	$	36,478		$	(805	)	$	(8,131	)	$	50,603
Comprehensive income:
Net income									1,188									1,188
Change in unrealized gains on securities available for sale, net of reclassification adjustment and tax effects												140						140
Defined benefit retirement plan adjustments, net of tax effects												21						21
Total comprehensive income																		1,349
Cash dividends at $0.20 per share									(867	)								(867	)
Stock-based compensation activity							12											12
Purchase of treasury stock, at cost		(16,100	)												(284	)		(284	)
Balance at March 31, 2010		4,321,487		$	4,746	$	18,327	$	36,799		$	(644	)	$	(8,415	)	$	50,813

	Three Months Ended March 31, 2009
	Number										Accumulated
	of										Other						Total
	Shares			Common				Retained			Comprehensive			Treasury			Stockholders’
	Outstanding			Stock		Surplus		Earnings			Loss			Stock			Equity
Balance at December 31, 2008		4,341,055		$	4,746	$	18,324	$	34,758		$	(1,247	)	$	(8,096	)	$	48,485
Comprehensive income:
Net income									1,410									1,410
Change in unrealized losses on securities available for sale, net of reclassification adjustment and tax effects												(151	)					(151	)
Total comprehensive income																		1,259
Cash dividends at $0.19 per share									(825	)								(825	)
Stock-based compensation activity							10											10
Purchase of treasury stock, at cost		(7,600	)												(128	)		(128	)
Balance at March 31, 2009		4,333,455		$	4,746	$	18,334	$	35,343		$	(1,398	)	$	(8,224	)	$	48,801

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)

	Three Months Ended March 31,
	2010			2009
Operating activities:
Net income	$	1,188		$	1,410
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		285			135
Depreciation		127			154
Net amortization of securities premiums		70			47
Amortization of core deposit intangible		11			11
Amortization of deferred net loan costs		5			12
Deferral of net loan costs (fees)		39			(10	)
Net realized gains on sales of securities		(12	)		—
Losses (gains) on sales of other assets		1			(6	)
Earnings on bank owned life insurance and annuities		(122	)		(106	)
Deferred income tax expense		19			6
Equity in earnings of unconsolidated subsidiary, net of dividends of $9 and $8		(47	)		(40	)
Stock-based compensation expense		12			10
Increase in accrued interest receivable and other assets		(432	)		(447	)
(Decrease) increase in accrued interest payable and other liabilities		(114	)		317
Net cash provided by operating activities		1,030			1,493
Investing activities:
Purchases of:
Securities available for sale		(10,226	)		(15,339	)
Premises and equipment		(98	)		(45	)
Bank owned life insurance and annuities		(30	)		(29	)
Proceeds from:
Maturities of and principal repayments on securities available for sale		12,754			9,728
Bank owned life insurance and annuities		17			18
Sale of other real estate owned		296			62
Sale of other assets		11			4
Net decrease in interest-bearing time deposits		75			—
Net (increase) decrease in loans receivable		(330	)		4,884
Net cash provided by (used in) investing activities		2,469			(717	)
Financing activities:
Net (decrease) increase in deposits		(2,766	)		9,100
Net decrease in short-term borrowings and securities sold under agreements to repurchase		(655	)		(8,272	)
Cash dividends		(867	)		(825	)
Purchase of treasury stock		(284	)		(128	)
Net cash used in financing activities		(4,572	)		(125	)
Net (decrease) increase in cash and cash equivalents		(1,073	)		651
Cash and cash equivalents at beginning of period		19,895			12,457
Cash and cash equivalents at end of period	$	18,822		$	13,108
Supplemental information:
Interest paid	$	1,595		$	1,944
Income taxes paid	$	200		$	—
Supplemental schedule of noncash investing and financing activities:
Transfer of loans to other real estate owned and repossessed assets	$	112		$	391