Juniata Valley Financial (JUVF) 8-K Juniata Valley Financial Corp. Announces 12.9% Increase in Quarterly Earnings Over Second Quarter and Declares Dividend

Exhibit 99.2

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

	September 30,			December 31,
	2010			2009
ASSETS
Cash and due from banks	$	10,178		$	18,613
Interest bearing deposits with banks		355			82
Federal funds sold		5,000			1,200
Cash and cash equivalents		15,533			19,895
Interest bearing time deposits with banks		1,345			1,420
Securities available for sale		78,900			77,356
Restricted investment in Federal Home Loan Bank (FHLB) stock		2,197			2,197
Investment in unconsolidated subsidiary		3,503			3,338
Total loans, net of unearned interest		304,260			311,630
Less: Allowance for loan losses		(2,811	)		(2,719	)
Total loans, net of allowance for loan losses		301,449			308,911
Premises and equipment, net		7,176			6,878
Other real estate owned		494			476
Bank owned life insurance and annuities		13,459			13,066
Core deposit intangible		265			299
Goodwill		2,046			2,046
Accrued interest receivable and other assets		5,622			6,227
Total assets	$	431,989		$	442,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	53,886		$	55,030
Interest bearing		318,662			322,367
Total deposits		372,548			377,397
Securities sold under agreements to repurchase		2,875			3,207
Long-term debt		—			5,000
Other interest bearing liabilities		1,178			1,146
Accrued interest payable and other liabilities		4,634			4,756
Total liabilities		381,235			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 — 4,275,265 shares at September 30, 2010; 4,337,587 shares at December 31, 2009		4,746			4,746
Surplus		18,332			18,315
Retained earnings		37,462			36,478
Accumulated other comprehensive loss		(564	)		(805	)
Cost of common stock in Treasury:
470,561 shares at September 30, 2010; 408,239 shares at December 31, 2009		(9,222	)		(8,131	)
Total stockholders’ equity		50,754			50,603
Total liabilities and stockholders’ equity	$	431,989		$	442,109

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

	For the Quarter Ended
	September 30,			June 30,
	2010			2010
Interest income:
Loans, including fees	$	4,824		$	4,896
Taxable securities		257			263
Tax-exempt securities		245			264
Federal funds sold		3			3
Other interest income		10			10
Total interest income		5,339			5,436
Interest expense:
Deposits		1,288			1,347
Securities sold under agreements to repurchase		1			—
Short-term borrowings		—			—
Long-term debt		29			36
Other interest bearing liabilities		2			4
Total interest expense		1,320			1,387
Net interest income		4,019			4,049
Provision for loan losses		70			282
Net interest income after provision for loan losses		3,949			3,767
Noninterest income:
Trust fees		90			90
Customer service fees		335			387
Earnings on bank-owned life insurance and annuities		133			138
Commissions from sales of non-deposit products		80			125
Income from unconsolidated subsidiary		60			63
Securities impairment charge		(40	)		—
Gain on sale or call of securities		4			15
Gain (Loss) on sales of other assets		30			7
Prior period income from insurance sales		—			—
Other noninterest income		244			199
Total noninterest income		936			1,024
Noninterest expense:
Employee compensation expense		1,232			1,308
Employee benefits		363			403
Occupancy		243			216
Equipment		148			136
Data processing expense		366			346
Director compensation		88			86
Professional fees		128			136
Taxes, other than income		124			125
FDIC Insurance premiums		138			150
Amortization of intangibles		11			12
Other noninterest expense		317			381
Total noninterest expense		3,158			3,299
Income before income taxes		1,727			1,492
Provision for income taxes		442			354
Net income	$	1,285		$	1,138
Earnings per share
Basic	$	0.30		$	0.26
Diluted	$	0.30		$	0.26
Cash dividends declared per share	$	0.21		$	0.20

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Interest income:
Loans, including fees	$	4,824		$	5,126		$	14,756		$	15,671
Taxable securities		257			281			753			909
Tax-exempt securities		245			305			784			864
Federal funds sold		3			33			7			147
Other interest income		10			2			29			7
Total interest income		5,339			5,747			16,329			17,598
Interest expense:
Deposits		1,288			1,770			4,154			5,469
Securities sold under agreements to repurchase		1			1			2			2
Short-term borrowings		—			—			1			1
Long-term debt		29			36			99			105
Other interest bearing liabilities		2			5			9			16
Total interest expense		1,320			1,812			4,265			5,593
Net interest income		4,019			3,935			12,064			12,005
Provision for loan losses		70			165			637			377
Net interest income after provision for loan losses		3,949			3,770			11,427			11,628
Noninterest income:
Trust fees		90			83			300			253
Customer service fees		335			437			1,104			1,235
Earnings on bank-owned life insurance and annuities		133			130			393			348
Commissions from sales of non-deposit products		80			66			301			324
Income from unconsolidated subsidiary		60			50			179			146
Securities impairment charge		(40	)		—			(40	)		(226	)
Gain on sale or call of securities		4			—			31			—
Gain (Loss) on sales of other assets		30			(33	)		36			—
Prior period income from insurance sales		—			—			—			323
Other noninterest income		244			219			679			700
Total noninterest income		936			952			2,983			3,103
Noninterest expense:
Employee compensation expense		1,232			1,199			3,826			3,699
Employee benefits		363			391			1,182			1,246
Occupancy		243			218			692			693
Equipment		148			149			403			473
Data processing expense		366			324			1,077			994
Director compensation		88			100			261			318
Professional fees		128			90			357			301
Taxes, other than income		124			125			379			380
FDIC Insurance premiums		138			121			435			526
Amortization of intangibles		11			11			34			34
Other noninterest expense		317			276			956			846
Total noninterest expense		3,158			3,004			9,602			9,510
Income before income taxes		1,727			1,718			4,808			5,221
Provision for income taxes		442			430			1,197			1,358
Net income	$	1,285		$	1,288		$	3,611		$	3,863
Earnings per share
Basic	$	0.30		$	0.30		$	0.84		$	0.89
Diluted	$	0.30		$	0.30		$	0.84		$	0.89
Cash dividends declared per share	$	0.21		$	0.20		$	0.61		$	0.58
Weighted average basic shares outstanding		4,283,024			4,342,587			4,307,417			4,340,595
Weighted average diluted shares outstanding		4,286,350			4,346,353			4,310,989			4,344,720

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

Nine Months Ended September 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										3,611									3,611
Change in unrealized gains on securities available for sale, net of reclassification adjustment and tax effects													178						178
Defined benefit retirement plan adjustments, net of tax effects													63						63
Total comprehensive income																			3,852
Cash dividends at $0.61 per share										(2,627	)								(2,627	)
Stock-based compensation activity							36												36
Purchase of treasury stock, at cost		(66,400	)													(1,171	)		(1,171	)
Treasury stock issued for stock option and stock purchase plans		4,078					(19	)								80			61
Balance at September 30, 2010		4,275,265		$	4,746	$	18,332		$	37,462		$	(564	)	$	(9,222	)	$	50,754

Nine Months Ended September 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										3,863									3,863
Change in unrealized gains on securities available for sale, net of reclassification adjustment and tax effects													305						305
Defined benefit retirement plan adjustments, net of tax effects													(5	)					(5	)
Total comprehensive income																			4,163
Cash dividends at $0.58 per share										(2,518	)								(2,518	)
Stock-based compensation activity							29												29
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 September 30, 2009		4,342,587		$	4,746	$	18,304		$	36,103		$	(947	)	$	(8,042	)	$	50,164

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

	Nine Months Ended
	September 30,
	2010			2009
Operating activities:
Net income	$	3,611		$	3,863
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		637			377
Depreciation		406			457
Net amortization of securities premiums		216			156
Amortization of core deposit intangible		34			34
Amortization of deferred net loan costs		17			35
Deferral of net loan costs (fees)		35			(3	)
Securities impairment charge		40			226
Net realized gains on sales or calls of securities		(31	)		—
Net gains on sales of other assets		(36	)		—
Earnings on bank owned life insurance and annuities		(393	)		(348	)
Deferred income tax expense		15			94
Equity in earnings of unconsolidated subsidiary, net of dividends of $28 and $34		(151	)		(112	)
Stock-based compensation expense		36			29
Decrease in accrued interest receivable and other assets		559			78
Decrease in accrued interest payable and other liabilities		(74	)		(1	)
Net cash provided by operating activities		4,921			4,885
Investing activities:
Purchases of:
Securities available for sale		(39,157	)		(43,026	)
Premises and equipment		(704	)		(103	)
Bank owned life insurance and annuities		(66	)		(94	)
Proceeds from:
Maturities of and principal repayments on securities available for sale		37,636			25,757
Bank owned life insurance and annuities		50			52
Sale of fixed assets		—			33
Sale of other real estate owned		747			435
Sale of other assets		11			80
Net decrease in interest-bearing time deposits		75			3,726
Net decrease in loans receivable		6,043			3,169
Net cash provided by (used in) investing activities		4,635			(9,971	)
Financing activities:
Net (decrease) increase in deposits		(4,849	)		15,002
Net decrease in short-term borrowings and securities sold under agreements to repurchase		(332	)		(8,644	)
Repayment of long-term debt		(5,000	)		—
Cash dividends		(2,627	)		(2,518	)
Purchase of treasury stock		(1,171	)		(128	)
Treasury stock issued for employee stock plans		61			133
Net cash (used in) provided by financing activities		(13,918	)		3,845
Net decrease in cash and cash equivalents		(4,362	)		(1,241	)
Cash and cash equivalents at beginning of period		19,895			12,457
Cash and cash equivalents at end of period	$	15,533		$	11,216
Supplemental information:
Interest paid	$	4,358		$	5,668
Income taxes paid	$	1,145		$	910
Supplemental schedule of noncash investing and financing activities:
Transfer of loans to other real estate owned and repossessed assets	$	730		$	609