Juniata Valley Financial (JUVF) 8-K Juniata Valley Financial Corp. Increases Quarterly Dividend by 5% and Announces Second Quarter 2010 Earnings

Exhibit 99.2

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

	June 30,			December 31,
	2010			2009
ASSETS
Cash and due from banks	$	10,405		$	18,613
Interest bearing deposits with banks		1,860			82
Federal funds sold		9,250			1,200
Cash and cash equivalents		21,515			19,895
Interest bearing time deposits with banks		1,345			1,420
Securities available for sale		81,062			77,356
Restricted investment in Federal Home Loan Bank (FHLB) stock		2,197			2,197
Investment in unconsolidated subsidiary		3,452			3,338
Total loans, net of unearned interest		308,075			311,630
Less: Allowance for loan losses		(2,980	)		(2,719	)
Total loans, net of allowance for loan losses		305,095			308,911
Premises and equipment, net		6,785			6,878
Other real estate owned		296			476
Bank owned life insurance and annuities		13,327			13,066
Core deposit intangible		276			299
Goodwill		2,046			2,046
Accrued interest receivable and other assets		6,550			6,227
Total assets	$	443,946		$	442,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	55,091		$	55,030
Interest bearing		324,471			322,367
Total deposits		379,562			377,397
Securities sold under agreements to repurchase		3,168			3,207
Long-term debt		5,000			5,000
Other interest bearing liabilities		1,158			1,146
Accrued interest payable and other liabilities		4,585			4,756
Total liabilities		393,473			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 —
4,283,565 shares at June 30, 2010;
4,337,587 shares at December 31, 2009		4,746			4,746
Surplus		18,320			18,315
Retained earnings		37,077			36,478
Accumulated other comprehensive loss		(593	)		(805	)
Cost of common stock in Treasury:
462,261 shares at June 30, 2010;
408,239 shares at December 31, 2009		(9,077	)		(8,131	)
Total stockholders’ equity		50,473			50,603
Total liabilities and stockholders’ equity	$	443,946		$	442,109

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2010		2009			2010		2009
Interest income:
Loans, including fees	$	4,896	$	5,256		$	9,932	$	10,545
Taxable securities		263		320			496		628
Tax-exempt securities		264		278			539		559
Federal funds sold		3		58			4		114
Other interest income		10		3			19		5
Total interest income		5,436		5,915			10,990		11,851
Interest expense:
Deposits		1,347		1,821			2,866		3,699
Securities sold under agreements to repurchase		—		—			1		1
Short-term borrowings		—		—			1		1
Long-term debt		36		35			70		69
Other interest bearing liabilities		4		6			7		11
Total interest expense		1,387		1,862			2,945		3,781
Net interest income		4,049		4,053			8,045		8,070
Provision for loan losses		282		77			567		212
Net interest income after provision for loan losses		3,767		3,976			7,478		7,858
Noninterest income:
Trust fees		90		86			210		170
Customer service fees		387		426			769		798
Earnings on bank-owned life insurance and annuities		138		112			260		218
Commissions from sales of non-deposit products		125		150			221		258
Income from unconsolidated subsidiary		63		48			119		96
Securities impairment charge		—		(226	)		—		(226	)
Gain on sale or call of securities		15		—			27		—
Gain on sales of other assets		7		27			6		33
Prior period income from insurance sales		—		—			—		323
Other noninterest income		199		286			435		481
Total noninterest income		1,024		909			2,047		2,151
Noninterest expense:
Employee compensation expense		1,308		1,214			2,594		2,500
Employee benefits		403		411			819		855
Occupancy		216		236			449		475
Equipment		136		162			255		324
Data processing expense		346		337			711		670
Director compensation		86		108			173		218
Professional fees		136		90			229		211
Taxes, other than income		125		127			255		255
FDIC Insurance premiums		150		317			297		405
Amortization of intangibles		12		12			23		23
Other noninterest expense		381		301			639		570
Total noninterest expense		3,299		3,315			6,444		6,506
Income before income taxes		1,492		1,570			3,081		3,503
Provision for income taxes		354		405			755		928
Net income	$	1,138	$	1,165		$	2,326	$	2,575
Earnings per share
Basic	$	0.26	$	0.27		$	0.54	$	0.59
Diluted	$	0.26	$	0.27		$	0.54	$	0.59
Cash dividends declared per share	$	0.20	$	0.19		$	0.40	$	0.38
Weighted average basic shares outstanding		4,309,610		4,338,545			4,319,816		4,339,583
Weighted average diluted shares outstanding		4,312,778		4,342,086			4,323,423		4,343,850

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

Six Months Ended June 30, 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										2,326									2,326
Change in unrealized gains on securities available for sale, net of reclassification adjustment and tax effects													170						170
Defined benefit retirement plan adjustments, net of tax effects													42						42
Total comprehensive income																			2,538
Cash dividends at $0.40 per share										(1,727	)								(1,727	)
Stock-based compensation activity							24												24
Purchase of treasury stock, at cost		(58,100	)													(1,026	)		(1,026	)
Treasury stock issued for stock option and stock purchase plans		4,078					(19	)								80			61
Balance at June 30, 2010		4,283,565		$	4,746	$	18,320		$	37,077		$	(593	)	$	(9,077	)	$	50,473

Six Months Ended June 30, 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										2,575									2,575
Change in unrealized losses on securities available for sale, net of reclassification adjustment and tax effects													(17	)					(17	)
Total comprehensive income																			2,558
Cash dividends at $0.38 per share										(1,649	)								(1,649	)
Stock-based compensation activity							19												19
Purchase of treasury stock, at cost		(7,600	)													(128	)		(128	)
Treasury stock issued for stock option and stock purchase plans		9,132					(49	)								182			133
Balance at June 30, 2009		4,342,587		$	4,746	$	18,294		$	35,684		$	(1,264	)	$	(8,042	)	$	49,418

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

	Six Months Ended June 30,
	2010			2009
Operating activities:
Net income	$	2,326		$	2,575
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		567			212
Depreciation		256			309
Net amortization of securities premiums		143			97
Amortization of core deposit intangible		23			23
Amortization of deferred net loan costs		11			18
Deferral of net loan costs (fees)		8			(9	)
Securities impairment charge		—			226
Net realized gains on sales or calls of securities		(27	)		—
Net gains on sales of other assets		(6	)		(33	)
Earnings on bank owned life insurance and annuities		(260	)		(218	)
Deferred income tax expense (credit)		2			(54	)
Equity in earnings of unconsolidated subsidiary, net of dividends of $19 and $17		(100	)		(79	)
Stock-based compensation expense		24			19
Increase in accrued interest receivable and other assets		(375	)		(163	)
(Decrease) increase in accrued interest payable and other liabilities		(149	)		552
Net cash provided by operating activities		2,443			3,475
Investing activities:
Purchases of:
Securities available for sale		(26,286	)		(31,937	)
Premises and equipment		(163	)		(86	)
Bank owned life insurance and annuities		(44	)		(68	)
Proceeds from:
Maturities of and principal repayments on securities available for sale		22,701			21,568
Bank owned life insurance and annuities		33			35
Sale of other real estate owned		570			228
Sale of other assets		11			113
Net decrease in interest-bearing time deposits		75			—
Net decrease in loans receivable		2,846			6,528
Net cash used in investing activities		(257	)		(3,619	)
Financing activities:
Net increase in deposits		2,165			15,226
Net decrease in short-term borrowings and securities sold under agreements to repurchase		(39	)		(8,861	)
Cash dividends		(1,727	)		(1,649	)
Purchase of treasury stock		(1,026	)		(128	)
Treasury stock issued for employee stock plans		61			133
Net cash (used in) provided by financing activities		(566	)		4,721
Net increase in cash and cash equivalents		1,620			4,577
Cash and cash equivalents at beginning of period		19,895			12,457
Cash and cash equivalents at end of period	$	21,515		$	17,034
Supplemental information:
Interest paid	$	3,044		$	3,841
Income taxes paid	$	770		$	700
Supplemental schedule of noncash investing and financing activities:
Transfer of loans to other real estate owned and repossessed assets	$	384		$	524