UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q



(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT 1934

For the quarterly period ended  September 30, 2003
                                ------------------

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the transition period from                         to
                              ------------------------    ----------------------
Commission File Number                             2-81699
                      ----------------------------------------------------------


                         Juniata Valley Financial Corp.
                         ------------------------------
             (Exact name of registrant as specified in its charter)

             Pennsylvania                              23-2235254
--------------------------------------------------------------------------------
   (State or other jurisdiction of                  (I.R.S.Employer
    incorporation or organization)                 Identification No.)

   Bridge and Main Streets, Mifflintown, Pennsylvania           17059
--------------------------------------------------------------------------------
      (Address of principal executive offices)               (Zip Code)

                                 (717) 436-8211
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.            [X] Yes      [ ] No

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

            Class                          Outstanding as of October 31, 2003
---------------------------------    -------------------------------------------
 Common Stock ($1.00 par value)                   2,278,305 shares

<PAGE>


Item 1 - FINANCIAL STATEMENTS                                                2.

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                           CONSOLIDATED BALANCE SHEETS
                           ---------------------------


                                                 September  30,  December 31,
                                                       2003         2002
                                                    ---------    ---------
                                                        (In thousands)
                                                          (Unaudited)
          ASSETS
          ------
Cash and due from banks                             $  12,023     $  11,111
Interest bearing deposits with banks                       92            90
Federal funds sold                                         --         3,700
                                                    ---------     ---------
   Cash and cash equivalents                           12,115        14,901

Interest bearing time deposits with banks               5,390         5,390
Securities available for sale                          88,743        70,495
Securities held to maturity, fair value
   $20,543 and $30,698, respectively                   20,208        29,907
Federal home loan bank stock                            1,077           639
Loans receivable net of allowance for loan
   losses $2,824 and $2,731, respectively             244,339       235,497
Bank premises and equipment, net                        6,860         5,767
Bank-owned life insurance                               7,218         7,151
Accrued interest receivable and other assets            7,064         5,988
                                                    ---------     ---------
      TOTAL ASSETS                                  $ 393,014     $ 375,735
                                                    =========     =========
         LIABILITIES AND STOCKHOLDERS' EQUITY
         ------------------------------------
Liabilities:
   Deposits:
      Non-interest bearing                          $  43,451     $  38,892
      Interest bearing                                291,363       283,727
                                                    ---------     ---------
   Total deposits                                     334,814       322,619

Short-term borrowings                                   2,800            --
Accrued interest payable
   and other liabilities                                4,881         4,789
                                                    ---------     ---------
      Total liabilities                               342,495       327,408
                                                    ---------     ---------
Stockholders' Equity:
   Preferred stock, no par value; 500,000 shares
      authorized; no shares issued or outstanding          --            --
   Common stock, par value $1.00 per share;
      authorized 20,000,000 shares; issued
      2,372,930 shares                                  2,373         2,373
   Surplus                                             20,215        20,212
   Retained earnings                                   28,996        25,652
   Accumulated other comprehensive income               1,714         1,795
   Treasury stock, at cost 2003 94,625 shares;
      2002 59,445 shares                               (2,779)       (1,705)
                                                    ---------     ---------
      Total stockholders' equity                       50,519        48,327
                                                    ---------     ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $ 393,014     $ 375,735
                                                    =========     =========

<PAGE>

                                                                              3.
<TABLE>
<CAPTION>

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                        CONSOLIDATED STATEMENTS OF INCOME
                        ---------------------------------
                                   (Unaudited)

                                                      For the Quarter Ended         For Nine Months Ended
                                                      ---------------------         ---------------------
                                                   September 30, September 30,  September 30,  September 30,
                                                       2003          2002           2003           2002
                                                   ----------     ----------     ----------     ----------
                                                         (In thousands, except per share amount)
<S>                                                <C>            <C>            <C>            <C>
INTEREST INCOME:
   Loans receivable                                $    4,634     $    4,733     $   13,947     $   14,168
   Taxable securities                                     628            734          2,022          2,174
   Tax-exempt securities                                  292            364            920          1,139
   Other                                                   57             66            194            165
                                                   ----------     ----------     ----------     ----------
      Total interest income                             5,611          5,897         17,083         17,646

INTEREST EXPENSE:
   Deposits                                             1,831          2,321          5,762          7,050
   Short-term borrowings                                    1            --               1             --
                                                   ----------     ----------     ----------     ----------
      Total interest expense                            1,832          2,321          5,763          7,050

      Net interest income                               3,779          3,576         11,320         10,596

PROVISION FOR LOAN LOSSES:                                 75             75            225            225
                                                   ----------     ----------     ----------     ----------
   Net interest income, after
     provision for loan losses                          3,704          3,501         11,095         10,371
                                                   ----------     ----------     ----------     ----------
OTHER INCOME:
   Trust department                                        90             75            315            274
   Customer service fees                                  194            180            537            506
Other                                                     646            220          1,194            717
                                                   ----------     ----------     ----------     ----------
      Total other income                                  930            475          2,046          1,497
                                                   ----------     ----------     ----------     ----------
OTHER EXPENSES:
   Salaries and wages                                   1,030            928          3,006          2,746
   Employee benefits                                      425            326          1,102            966
   Occupancy                                              189            167            557            490
   Equipment                                              331            282            951            884
   Director compensation                                  131             85            392            257
   Taxes, other than income                               128            125            388            377
   Other                                                  343            356          1,024          1,023
                                                   ----------     ----------     ----------     ----------
      Total other expenses                              2,577          2,269          7,420          6,743
                                                   ----------     ----------     ----------     ----------
INCOME BEFORE INCOME TAXES:                             2,057          1,707          5,721          5,125

FEDERAL INCOME TAXES:                                     502            509          1,302          1,262
                                                   ----------     ----------     ----------     ----------
   Net income                                      $    1,555     $    1,198     $    4,419     $    3,863
                                                   ==========     ==========     ==========     ==========
   Basic and diluted earnings per share            $      .68     $      .51     $     1.93     $     1.65
                                                   ==========     ==========     ==========     ==========

   Weighted average number of shares outstanding    2,284,037      2,327,253      2,294,488      2,337,163
                                                   ==========     ==========     ==========     ==========
</TABLE>


<PAGE>

                                                                              4.
<TABLE>
<CAPTION>

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                 ----------------------------------------------
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
                  --------------------------------------------

                                   (Unaudited)

                                                                     Accumulated
                                                                        Other
                                    Common                Retained  Comprehensive   Treasury
                                    Stock     Surplus     Earnings     Income         Stock      Total
                                    ------    -------     --------  -------------   --------     -----
                                                                  (In thousands)
<S>                                <C>        <C>         <C>         <C>           <C>         <C>
BALANCE,
   December 31, 2002               $  2,373   $ 20,212    $ 25,652    $  1,795      $ (1,705)   $ 48,327
                                                                                                --------
Comprehensive Income

Net income for the
   nine months ended
   September 30, 2003                    --         --       4,419          --            --       4,419

Change in unrealized
   gains (losses) on
   securities available
   for sale, net of
   reclassification
   adjustment and tax
   effects                               --         --          --         (81)           --         (81)
                                                                                                --------

      Total Comprehensive Income                                                                   4,339
                                                                                                --------

Cash dividends, $.47 per share           --         --      (1,075)         --            --      (1,075)

Treasury stock issued for
   dividend reinvestment plan
   (7,488 shares)                        --          8          --          --           214         222

Treasury stock issued for
   employee stock purchase plan
   (2,227 shares)                        --         (5)         --          --            63          58

Treasury stock acquired                  --         --          --          --        (1,351)     (1,351)
                                   --------   --------    --------    --------      --------    --------
Balance September 30, 2003         $  2,373   $ 20,215    $ 28,996    $  1,714      $ (2,779)   $ 50,519
                                   ========   ========    ========    ========      ========    ========

</TABLE>


<PAGE>

                                                                              5.
<TABLE>
<CAPTION>

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                 ----------------------------------------------
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
                  --------------------------------------------

                                   (Unaudited)

                                                                     Accumulated
                                                                        Other
                                    Common                Retained  Comprehensive   Treasury
                                    Stock     Surplus     Earnings     Income         Stock      Total
                                    ------    -------     --------  -------------   --------     -----
                                                                  (In thousands)
<S>                                <C>        <C>         <C>         <C>           <C>         <C>
BALANCE,
  December 31, 2001                $  2,373   $ 20,221    $ 22,679    $    676      $   (623)   $ 45,326
                                                                                                --------
Comprehensive Income

Net income for the
   nine months ended
   September 30, 2002                    --         --       3,863          --            --       3,863

Change in unrealized
   gains (losses) on
   securities available
   for sale, net of
   reclassification
   adjustment and tax
   effects                               --         --          --       1,012            --       1,012
                                                                                                --------

      Total Comprehensive Income                                                                   4,875
                                                                                                --------

Cash dividends, $.43 per share           --         --      (1,005)         --            --      (1,005)

Treasury stock issued for
   dividend reinvestment plan
   (7,088 shares)                        --         --          --          --           201         201

Treasury stock issued for
   employee stock purchase plan
   (2,296 shares)                        --        (10)         --          --            65          55


Treasury stock acquired                  --         --          --          --        (1,305)     (1,305)
                                   --------   --------    --------    --------      --------    --------
Balance September 30, 2002         $  2,373   $ 20,211    $ 25,537    $  1,688      $ (1,662)   $ 48,147
                                   ========   ========    ========    ========      ========    ========
</TABLE>


<PAGE>


                                                                              6.
<TABLE>
<CAPTION>

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                   (Unaudited)
                Increase (Decrease) in Cash and Cash Equivalents

                                                                    For the Nine Months Ended
                                                                ---------------------------------
                                                                September 30,       September 30,
                                                                    2003                 2002
                                                                  --------            --------
                                                                          (In thousands)
<S>                                                               <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                     $  4,419            $  3,863
   Adjustments to reconcile net income to net
      cash provided by operating activities:
   Provision for loan losses                                           225                 225
   Provision for depreciation                                          319                 334
   Net amortization on securities premium                              186                 157
   Deferred compensation expense                                       457                 460
   Earnings on life insurance                                         (262)               (262)
   Payment of deferred compensation                                   (199)               (200)
   Deferred income taxes                                               (31)               (107)
   Increase in accrued interest receivable and
      other assets                                                    (809)               (915)
   Decrease in interest payable and other liabilities                 (165)                (39)
                                                                  --------            --------
      Net cash provided by operating activities                      4,140               3,516
                                                                  --------            --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Net increase in interest bearing time deposits                       --                (400)
   Purchases of available for sale securities                      (47,293)            (29,460)
   Purchase FHLB stock                                                (438)                (28)
   Proceeds from maturities of and principal
      repayments on available for sale securities                   28,784              20,392
   Purchase of held to maturity securities                          (3,002)               (498)
   Proceeds from maturities of and principal
      repayments on held to maturity securities                     12,654               7,121
   Net increase in loans receivable                                 (9,067)             (5,496)
   Net purchases of bank premises and equipment                     (1,413)               (106)
                                                                  --------            --------
      Net cash used in investing activities                        (19,775)             (8,475)
                                                                  --------            --------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Net increase in deposits                                         12,195              15,206
   Net increase (decrease) in short-term borrowings                  2,800              (1,275)
   Cash dividends and cash paid for fractional shares               (1,075)             (1,005)
   Purchase of treasury stock                                       (1,351)             (1,305)
   Treasury stock issued for dividend reinvestment and employee
      stock purchase plan                                              280                 256
                                                                  --------            --------
      Net cash provided in financing activities                     12,849              11,877
                                                                  --------            --------
         Increase in cash and cash equivalents                      (2,786)              6,918

CASH AND CASH EQUIVALENTS:
   Beginning                                                        14,901              11,658
                                                                  --------            --------
   Ending                                                         $ 12,115            $ 18,576
                                                                  ========            ========
CASH PAYMENTS FOR:
   Interest                                                       $  5,909            $  7,227
                                                                  ========            ========
   Income Taxes                                                   $  1,367            $  1,425
                                                                  ========            ========
</TABLE>

<PAGE>

                                                                              7.


NOTE A - Basis of Presentation

The financial information includes the accounts of Juniata Valley Financial
Corp. and its wholly owned subsidiary, The Juniata Valley Bank. All significant
intercompany accounts and transactions have been eliminated.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments considered
necessary for fair presentation have been included. Operating results for the
nine-month period ended September 30, 2003, are not necessarily indicative of
the results that may be expected for the year ended December 31, 2003. For
further information, refer to the consolidated financial statements and
footnotes thereto included in Juniata Valley Financial Corp. annual report on
Form 10-K for the year ended December 31, 2002.


NOTE B - New Accounting Standards

In November 2002, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 45 (FIN 45), "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others." This Interpretation expands the disclosures to be made by a guarantor
in its financial statements about its obligations under certain guarantees and
requires the guarantor to recognize a liability for the fair value of an
obligation assumed under certain specified guarantees. FIN 45 clarifies the
requirements of FASB Statement No. 5, "Accounting for Contingencies." In
general, FIN 45 applies to contracts or indemnification agreements that
contingently require the guarantor to make payments to the guaranteed party
based on changes in an underlying that is related to an asset, liability or
equity security of the guaranteed party, which would include performance letters
of credit. Certain guarantee contracts are excluded from both the disclosure and
recognition requirements of this Interpretation, including, among others,
guarantees related to commercial letters of credit and loan commitments. The
disclosure requirements of FIN 45 require disclosure of the nature of the
guarantee, the maximum potential amount of future payments that the guarantor
could be required to make under the guarantee and the current amount of the
liability, if any, for the guarantor's obligations under the guarantee. The
accounting recognition requirements of FIN 45 are to be applied prospectively to
guarantees issued or modified after December 31, 2002. Adoption of FIN 45 did
not have a significant impact on the Company's financial condition or results of
operations.

Outstanding letters of credit written are conditional commitments issued by the
Company to guarantee the performance of a customer to a third party. The
Company's exposure to credit loss in the event of nonperformance by the other
party to the financial instrument for performance letters of credit is
represented by the contractual amount of those instruments. The Company had
$1,023,000 of performance letters of credit as of September 30, 2003. The Bank
uses the same credit policies in making conditional obligations as it does for
on-balance sheet instruments.

The majority of these performance letters of credit expire within the next
twelve months. The credit risk involved in issuing letters of credit is
essentially the same as that involved in extending other loan commitments. The
Company requires collateral and personal guarantees supporting these letters of
credit as deemed necessary. Management believes that the proceeds obtained
through a liquidation of such collateral and the enforcement of personal
guarantees would be sufficient to cover the maximum potential amount of future
payments required under the corresponding guarantees. The current amount of the
liability as of September 30, 2003 for guarantees under performance letters of
credit issued after December 31, 2002 is not material.


<PAGE>


                                                                              8.

In January 2003, the Financial Accounting Standards Board issued FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities, and
Interpretation of ARB No. 51". This interpretation provides new guidance for the
consolidation of variable interest entities (VIEs) and requires such entities to
be consolidated by their primary beneficiaries if the entities do not
effectively disperse risk among parties involved. The interpretation also adds
disclosure requirements for investors that are involved with unconsolidated
VIEs. The disclosure requirements apply to all financial statements issued after
January 31, 2003. The consolidation requirements apply immediately to VIEs
created after January 31, 2003 and are effective December 31, 2003 for VIEs
acquired before February 1, 2003. The adoption of this interpretation did not
have a significant impact on the Company's financial condition or results of
operations.

In April 2003, the Financial Accounting Standards Board issued Statement No.
149, "Amendment of Statement No. 133, Accounting for Derivatives Instruments and
Hedging Activities". This statement clarifies the definition of a derivative and
incorporates certain decisions made by the Board as part of the Derivatives
Implementation Group process. This statement is effective for contracts entered
into or modified, and for hedging relationships designated after June 30, 2003
and should be applied prospectively. The provisions of the Statement that relate
to implementation issues addressed by the Derivatives Implementation Group that
have been effective should continue to be applied in accordance with their
respective effective dates. Adoption of this standard is not expected to have a
significant impact on the Corporation's financial condition or results of
operations.

In May of 2003, the Financial Accounting Standards Board issued Statement 150,
"Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity". This Statement requires that an issuer classify a
financial instrument that is within its scope as a liability. Many of those
instruments were previously classified as equity. This Statement was effective
for financial instruments entered into or modified after May 31, 2003 and
otherwise was effective beginning July 1, 2003. The adoption of this standard
did not have a significant impact on the Company's financial condition or
results of operations.

<PAGE>

                                                                              9.

Note C - Accumulated Other Comprehensive Income

Accounting principles generally require that recognized revenue, expenses,
gains, and losses be included in net income. Although certain changes in assets
and liabilities, such as unrealized gains and losses on available for sale
securities, are reported as a separate component of the equity section of the
balance sheet, such items, along with net income, are components of
comprehensive income.

The components of other comprehensive income and related tax effects are as
follows:

<TABLE>
<CAPTION>

                                         Three Months Ended September 30,        Nine Months Ended September 30,
                                         --------------------------------        -------------------------------
                                          2003                     2002           2003                     2002
                                          ----                     ----           ----                     ----
                                                (In thousands)                             (In thousands)
<S>                                     <C>                      <C>            <C>                      <C>
Unrealized holding gains (losses)
   on available for sale securities     $ (391)                  $  887         $ (123)                  $ 1,535

Less classification adjustment
   for gains realized in income             --                       --             --                        --
                                        ------                   ------         ------                   -------
Net unrealized gains (losses)             (391)                     887           (123)                    1,535

Tax effect                                (133)                     302            (42)                      523
                                        ------                   ------         ------                   -------
   Net of tax amount                    $ (258)                  $  585         $  (81)                  $ 1,012
                                        ======                   ======         ======                   =======
</TABLE>


<PAGE>

                                                                             10.

Note D - Stock Option Plan

The Corporation accounts for the stock option plan under the recognition and
measurement principles of APB Opinion No. 25, "Accounting for Stock Issued to
Employees," and related interpretations. No stock-based employee compensation
cost is reflected in net income, as all options granted under those plans had an
exercise price equal to the market value of the underlying common stock on the
date of grant. The following table illustrates the effect on net income and
earnings per share if the Corporation had applied the fair value recognition
provisions of FASB Statement No. 123, "Accounting for Stock-Based Compensation,"
to stock-based compensation for quarters ended September 30, 2003 and 2002:

<TABLE>
<CAPTION>

                                                        For the Quarter Ended                For Nine Months Ended
                                                  September 30,      September 30,     September 30,       September 30,
                                                      2003               2002              2003                2002
                                                    -------            -------           -------             -------
                                                             (In thousands, except per share amount)

<S>                                                 <C>                <C>               <C>                 <C>
Net income, as reported                             $ 1,555            $ 1,198           $ 4,419             $ 3,863

Total stock-based employee compensation
   expense determined under fair value
   based method for all awards                           (5)                (3)              (16)                 (8)
                                                    -------            -------           -------             -------
Pro forma net income                                $ 1,550            $ 1,195           $ 4,403             $ 3,855
                                                    =======            =======           =======             =======

Basic and diluted earnings per share:
   As reported                                      $   .68            $   .51           $  1.93             $  1.65
   Pro forma                                        $   .68            $   .51           $  1.92             $  1.65


Note E - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per
share:

</TABLE>

<TABLE>
<CAPTION>

                                                        For the Quarter Ended                For Nine Months Ended
                                                  September 30,      September 30,     September 30,       September 30,
                                                      2003               2002              2003                2002
                                                    -------            -------           -------             -------

<S>                                                <C>                <C>               <C>                 <C>
Net income applicable to common stock              1,555,000          1,198,000         4,419,000           3,863,000

Weighted average common shares outstanding         2,284,037          2,327,253         2,294,488           2,337,163
Effect of dilutive securities, stock options               3                 19               141                  83
                                                   ---------          ---------         ---------           ---------

Weighted average common shares outstanding
   used to calculate diluted earnings per
   share                                           2,284,040          2,327,272         2,294,629           2,337,246

Basic earnings per share                           $     .68          $     .51         $    1.93           $    1.65
Diluted earnings per share                         $     .68          $     .51         $    1.93           $    1.65

</TABLE>


<PAGE>

                                                                             11.

Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS

Forward Looking Statements:

The Private Securities Litigation Reform Act of 1995 contains safe harbor
provisions regarding forward-looking statements. When used in this discussion,
the words "believes," "anticipates," "contemplates," "expects," and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties which could cause actual results
to differ materially from those projected. Those risks and uncertainties include
changes in interest rates, risks associated with the effect of opening a new
branch, the ability to control costs and expenses, and general economic
conditions. The Corporation undertakes no obligation to publicly release the
results of any revisions to those forward-looking statements which may be made
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.


Financial Condition:

Total assets of Juniata Valley Financial Corp. totaled $393,014,000 as of
September 30, 2003, an increase of $17,279,000 or 4.60% from December 31, 2002.
This increase is a result of the increase in deposits of $12,195,000. The
increase in deposits was created by the uncertainty in the capital markets;
customers do not know where to place their money until the markets improve. The
bank has experienced an increase in loans of $9,067,000 in the first nine months
of 2003 because consumer sentiment has become more positive about the future.
Excess deposits were used to purchase investment securities since loan demand
did not keep pace with the inflow of deposits. Purchases exceeded called and
matured investment securities by $9,295,000. Short-term borrowings were also
utilized for $2,800,000 at the end of the quarter. All of these factors combined
to decrease cash and cash equivalents by $2,786,000.

There are no material loans classified for regulatory purposes as loss,
doubtful, substandard or special mention which management expects to
significantly impact future operating results, liquidity or capital resources.
Additionally, management is not aware of any information which would give
serious doubt as to the ability of its borrowers to substantially comply with
their loan repayment terms. The Corporation's problem loans (i.e., 90 days past
due and restructured loans) were not material for all periods presented.

Management is not aware of any current recommendations of the regulatory
authorities which, if implemented, would have a material effect on the
Corporation's liquidity, capital resources or operations.


<PAGE>

                                                                             12.

Results of Operations:

Interest income decreased $563,000 or 3.19% for the first nine months of 2003
over 2002. For the quarter the decrease was $286,000 or 4.85%. The decrease in
interest income on loans for nine months of $221,000 is because of a decline in
rates. For the quarter the decrease of $99,000 in interest income on loans can
also be attributed to this factor. The decrease in interest income in taxable
securities of $152,000 is due to declining rates and the decrease in tax exempt
securities of $219,000 is due to declining rates and volume. For the quarter the
decline in interest income of $106,000 in taxable securities and $72,000 in
tax-exempt securities were caused by the same factors. The increase in interest
income other of $29,000 is an increase in federal funds sold of $7,000 and
interest bearing time deposits in banks of $22,000. For the quarter, the
decrease of $9,000 in interest income can be attributed to a decline in the
volume of federal funds sold. Since November 2001 management has made an effort
to keep federal funds to a minimum by purchasing time certificate of deposits in
other banks. Interest expense decreased by $1,287,000 or 18.26% for the first
nine months of 2003 over 2002 and $489,000 or 21.07% for the quarter. Interest
income and expense for the first nine months ended September 30, 2003, versus
2002, reflect the declining interest rate environment for both interest earning
assets and interest bearing liabilities. This resulted in an increase in net
interest income of $724,000 or 6.83% for the nine months ended September 30,
2003 and $203,000 or 5.68% for the quarter.

The increase in the allowance for loan loss is based upon quarterly loan
portfolio reviews by management and a committee of the Board. The purpose of the
review is to assess loan quality, identify impaired loans, analyze
delinquencies, ascertain loan growth, evaluate potential charge-offs and
recoveries and assess general economic conditions in the market served. Net
charge-offs at September 30, 2003, were $132,000 compared to $122,000 at
September 30, 2002. Past due and nonaccrual loans at September 30, 2003, were
$1,830,000. At September 30, 2002, this amount for past due and nonaccrual loans
was $2,381,000. Depending upon the state of the economy and the impact thereon
to these borrowers, as well as future events, these loans and others not
currently so identified could be classified as non-performing assets in the
future.

Other income has increased $549,000 or 36.67% for the first nine months of 2003
over 2002. For the quarter the increase was $455,000 or 95.79%. Trust department
income has increased $41,000, customer service fees have increased $31,000, and
other income has increased $477,000. For the quarter trust department income
increased $15,000, customer service fees have increased $14,000, and other
income has increased $426,000. The increase in trust department income is a
result of an increase in pension plan administration in 2003 over 2002. The
increase in customer service fees is a result of higher transaction volume as
opposed to an increase in fees. The other category increase can be attributed to
$337,000 of life insurance proceeds, an increase of $49,000 in alternative
investment sales, and an increase in credit card interchange fees of $21,000.
For the quarter the increase can be attributed to $337,000 in life insurance
proceeds, $57,000 in alternative investment sales, and credit card interchange
fees of $7,000.

Other expenses increased $677,000 or 10.04% for the nine months ended September
30, 2003 over 2002 and $308,000 or 13.57% for the quarter. The $260,000 increase
in salary and wages for the nine months ended September 30, 2003, compared to
2002, can be attributed to an increase of 2 full-time equivalents and normal
merit increases. The increase of $102,000 for the quarter can be attributed to
the same factors. The $136,000 increase in employee benefits is from an
increased pension plan payout to a beneficiary. The increase for the quarter was
$99,000. The $67,000 increase in occupancy is a result of increased costs for
snow removal and heating and air conditioning costs in 2003 not experienced in
the first nine months of 2002. This increase was $22,000 for the quarter. The
increase of $67,000 in equipment cost is from increased usage of the internet
banking and telephone banking products and installation of the teller and
platform automation systems.

<PAGE>


                                                                             13.

Equipment costs increased by $49,000 for the quarter because of cost incurred in
the implementation of the new equipment. The $135,000 increase in director's
fees is from deferred compensation plans. The increase for the quarter was
$46,000. The $11,000 increase in taxes, other than income is an increase in
Pennsylvania Bank Shares Tax. The increase for the quarter was $3,000. The other
expenses increased $1,000 for the nine months ended September 30, 2003 and
declined by $13,000 for the quarter. The increase in federal income taxes is due
to increased income.

All of these factors combined have contributed to an increase in net income of
$556,000 or 14.39% for the first nine months ended September 30, 2003 over 2002
and $357,000 or 29.80% for the quarter.


Liquidity:

The objective of liquidity management is to ensure that sufficient funding is
available, at a reasonable cost, to meet the ongoing operational cash needs of
the Corporation and to take advantage of income producing opportunities as they
arise. While the desired level of liquidity will vary depending upon a variety
of factors, it is the primary goal of the Corporation to maintain a high level
of liquidity in all economic environments. Principal sources of asset liquidity
are provided by securities maturing in one year or less, other short-term
investments such as federal funds sold and cash and due from banks. Liability
liquidity, which is more difficult to measure, can be met by attracting deposits
and maintaining the core deposit base. The Corporation joined the Federal Home
Loan Bank of Pittsburgh in August of 1993 for the purpose of providing
short-term liquidity when other sources are unable to fill these needs.

In view of the primary and secondary sources previously mentioned, Management
believes that the Corporation's liquidity is capable of providing the funds
needed to meet loan demand.


Interest Rate Sensitivity:

Interest rate sensitivity management is the responsibility of the
Asset/Liability Management Committee. This process involves the development and
implementation of strategies to maximize net interest margin, while minimizing
the earnings risk associated with changing interest rates. The traditional gap
analysis identifies the maturity and repricing terms of all assets and
liabilities.

As of September 30, 2003, the Corporation had a six-month negative gap of
$21,924,000. Generally a liability sensitive position indicates that more
liabilities than assets are expected to reprice within the time period and that
falling interest rates could positively affect net interest income while rising
interest rates could negatively affect net interest income. However, the
traditional analysis does not accurately reflect the Bank's interest rate
sensitivity since the rates on core deposits generally do not change as quickly
as market rates. Historically net interest income has, in fact, not been subject
to the degree of sensitivity indicated by the traditional analysis at The
Juniata Valley Bank.


<PAGE>

                                                                             14.

Capital Adequacy:

The Bank's regulatory capital ratios for the periods presented are as follows:

Risk Weighted Assets Ratio:

<TABLE>
<CAPTION>

                                                   Actual                                 Required
                                                   ------                                 --------
                                       September 30,       December 31,       September 30,       December 31,
                                           2003                2002               2003                2002
                                       -------------       ------------       -------------       ------------

<S>                                       <C>                 <C>                 <C>                 <C>
TIER I                                    19.10%              18.76%              4.0%                4.0%
TIER I & II                               20.27%              19.93%              8.0%                8.0%

Total Assets Leveraged Ratio:

TIER I                                    11.99%              12.04%              4.0%                4.0%
</TABLE>

At September 30, the Corporation and the Bank exceed the regulatory requirements
to be considered a "well capitalized" financial institution.


Item 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

From January 1, 2001 to September 30, 2003, the Federal Reserve has lowered the
federal funds rate thirteen times by 500 basis points. We are currently in the
lowest interest rate environment in 50 years. Net interest margin for the Bank
was 4.57% at September 30, 2002 and decreased to 4.55% at September 30, 2003.
Because of the extent to which rates have declined, the Bank has become more
sensitive to future rate declines and expects added compression of the net
interest margin. Currently, the Bank has approximately 30.00% of its deposits in
NOW, money market and savings accounts, which it considers core deposits. These
type of interest bearing deposit accounts carry lower rates relative to other
types of deposits. Because of this, these accounts have contributed
significantly to the net interest margin. However, there is an ultimate floor to
which the rates on these accounts can fall. Under current conditions, the
inability to further decrease these deposits rates while loan and other earning
assets continue to drop and reprice at lower rates will result in further
compression of the net interest margin. The added risk in this interest rate
environment is that as the rates on the core deposits bottom-out, investors
could migrate to other types of accounts paying higher rates. The last financial
simulation performed by the Bank as of June 30, 2003, showed a possible decline
in net interest income of $239,000 in a -100 basis point rate shock over a one
year period. This reflected a change in the assumptions that the rates on NOW
and savings accounts would remain constant in a -100 or +200 basis point rate
shock. The net interest income at risk position remains within the guidelines
established by the Bank's asset/liability policy. The Bank continues to monitor
and manage its rate sensitivity during these unusual times.

No material change has been noted in the Bank's equity value at risk. Please
refer to the Annual Report on Form 10-K as of December 31, 2002, for further
discussion of this matter.


<PAGE>

                                                                             15.

Item 4 - CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

The Company's management, with the participation of the Company's Chief
Executive Officer and Chief Financial Officer has evaluated the effectiveness of
the Company's disclosure controls and procedures (as such term is defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934
(Exchange Act)) as of the end of the period covered by this report. Based on
such evaluation, the Company's Chief Executive Officer and Chief Financial
Officer have concluded that, as of the end of such period, the Company's
disclosure controls and procedures are effective in recording, processing,
summarizing and reporting, on a timely basis, information required to be
disclosed by the Company in the reports that it files or submits under the
Exchange Act.

INTERNAL CONTROL OVER FINANCIAL REPORTING

There have not been any changes in the Company's internal control over financial
reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) during the fiscal quarter to which this report relates that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.

<PAGE>


                                                                             16.

Part II.       Other Information

        Item 1.     Legal Proceedings
                    None

        Item 2.     Changes in Securities
                    None

        Item 3.     Defaults Upon Senior Securities
                    Not applicable

        Item 4.     Submission of Matters to a Vote of Security Holder
                    None

        Item 5.     Other information
                    None

        Item 6.     Exhibits
                    Exhibits 31.1 Rule 13a - 14(a)/15d - 14(a) Certification
                    Exhibits 31.2 Rule 13a - 14(a)/15d - 14(a) Certification
                    Exhibits 32.1 Section 1350 Certification
                    Exhibits 32.2 Section 1350 Certification

                    Form 8-K
                    Form 8-K was filed on July 30, 2003 announcing the six month
                             results of operations

     Pursuant to the requirements of the Security Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                           Juniata Valley Financial Corp.
                     (Registrant)

     Date                              By /s/ Francis J. Evanitsky
         -----------------------------    --------------------------------------

                                          Francis J. Evanitsky, President & CEO



     Date                              By /s/ Linda L. Engle
         -----------------------------    --------------------------------------

                                          Linda L. Engle, Executive VP & CFO