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, 2001
                               ------------------

[ ] 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 September 30, 2001
-----------------------------------------------------------------------------
  Common Stock ($1.00 par value)                 2,368,945 shares


<PAGE>


                                                                              2.

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

                                     ASSETS
                                     ------


                                                  September  30,   December 31,
                                                       2001            2000
                                                       ----            ----
                                                          (In thousands)

                                                   (Unaudited)

Cash and due from banks                              $   9,226      $  10,621
Interest-bearing deposits with banks                       682            676
Federal Funds Sold                                       6,200          4,400
                                                     ---------      ---------

   Total cash and cash equivalents                      16,108         15,697

Securities available for sale                           49,874         33,146
Securities held to maturity, fair value
    $39,607 and $50,967, respectively                   38,676         51,240
Federal Home Loan Bank stock                             1,208          1,185
Loans receivable net of allowance for loan
   losses $2,547 and $2,497, respectively              228,212        219,819
Bank premises and equipment, net                         6,078          5,992
Bank-owned life insurance                                6,701          1,462
Accrued interest receivable and other assets             6,721          6,373
                                                     ---------      ---------

       TOTAL ASSETS                                  $ 353,578      $ 334,914
                                                     =========      =========


                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

Liabilities:
   Deposits:
      Non-interest bearing                           $  35,242      $  33,893
      Interest bearing                                 267,283        253,327
                                                     ---------      ---------

     Total deposits                                    302,525        287,220

Accrued interest payable
   and other liabilities                                 5,277          4,612
                                                     ---------      ---------

     Total liabilities                                 307,802        291,832
                                                     ---------      ---------

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 2001
     2,372,945 and 2000 2,332,058 shares                 2,373          2,332
   Surplus                                              20,222         20,398
   Retained earnings
                                                        22,379         25,117
   Treasury stock, at cost 2001 4,000 shares;
     2000 167,110 shares                                  (112)        (5,132)
   Accumulated other comprehensive income                  914            367
                                                     ---------      ---------

     Total stockholders' equity                         45,776         43,082
                                                     ---------      ---------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $ 353,578      $ 334,914
                                                     =========      =========


<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,
                                      2001         2000             2001         2000
                                      ----         ----             ----         ----
                                       (In thousands, except per share amount)

<S>                                <C>          <C>             <C>          <C>
INTEREST INCOME:
   Loans receivable                $    4,992   $    4,923      $   15,130   $   14,200
   Taxable securities                     714          801           1,961        2,519
   Tax-exempt securities                  397          429           1,177        1,380
   Other                                   89          117             406          174
                                   ----------   ----------      ----------   ----------
     Total interest income              6,192        6,270          18,674       18,273

INTEREST EXPENSE
   Deposits                             3,029        3,065           9,175        8,729
                                   ----------   ----------      ----------   ----------
     Net interest income                3,163        3,205           9,499        9,544

PROVISION FOR LOAN LOSSES                  60           45             180          135
                                   ----------   ----------      ----------   ----------
     Net interest income, after
       provision for loan losses        3,103        3,160           9,319        9,409
                                   ----------   ----------      ----------   ----------
OTHER INCOME:
   Trust department                       125           70             348          270
   Customer service fees                  153          140             465          402
   Other                                  231          113             626          357
                                   ----------   ----------      ----------   ----------
     Total other income                   509          323           1,439        1,029
                                   ----------   ----------      ----------   ----------
OTHER EXPENSES:
   Salaries and wages                     873          912           2,636        2,723
   Employee benefits                      283          275             887          830
   Occupancy                              143          122             411          358
   Equipment                              293          232             893          708
   Director compensation                   99           76             282          222
   Taxes, other than income               121          120             364          345
   Other                                  326          288             970          920
                                   ----------   ----------      ----------   ----------
     Total other expenses               2,138        2,025           6,443        6,106
                                   ----------   ----------      ----------   ----------
INCOME BEFORE INCOME TAXES              1,474        1,458           4,315        4,332

FEDERAL INCOME TAXES                      352          336             943        1,072
                                   ----------   ----------      ----------   ----------
   Net income                      $    1,122   $    1,122      $    3,372   $    3,260
                                   ==========   ==========      ==========   ==========
   Basic earnings per share        $      .47   $      .47      $     1.42   $     1.34
                                   ==========   ==========      ==========   ==========
   Weighted average number of
     shares outstanding             2,371,249    2,410,036       2,370,855    2,430,936
                                    =========    =========       =========    =========

</TABLE>


<PAGE>



                                                                              4.
<TABLE>
<CAPTION>

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                 ----------------------------------------------
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
                  --------------------------------------------

                                  (Unaudited)
                                                                                 Accumulated
                                                                                    Other
                                      Common                Retained  Treasury  Comprehensive
                                      Stock     Surplus     Earnings    Stock       Income      Total
                                      -----     -------     --------    -----       ------      -----

                                                                  (In thousands)


<S>                                  <C>        <C>         <C>        <C>          <C>       <C>
BALANCE,
  December 31, 2000                  $ 2,332    $ 20,398    $ 25,117   $(5,132)     $  367    $ 43,082
                                                                                              --------

Net income for the
  nine months ended
  September 30, 2001                      --          --       3,372        --          --       3,372

Change in unrealized
  gains (losses) on
  securities available
  for sale, net of
  reclassification
  adjustment and tax
  effects                                 --          --          --        --         547         547
                                                                                              --------


    Total Comprehensive Income                                                                   3,919
                                                                                              --------
Cash dividends, $.39 per share            --          --        (922)       --          --        (922)

Stock issued under dividend
  reinvestment plan                        7         166          --        --          --         173

Stock issued under employee
  stock purchase plan                      2          30          --        --          --          32

10% Stock dividend                        32        (372)     (5,188)    5,517          --         (11)

Treasury stock acquired                   --          --          --      (497)         --        (497)
                                     -------    --------    --------   -------      ------    --------

Balance September 30, 2001           $ 2,373    $ 20,222    $ 22,379   $  (112)     $  914    $ 45,776
                                     =======    ========    ========   =======      ======    ========

</TABLE>

<PAGE>


<TABLE>
<CAPTION>
                                                                              5.

                  JUNIATA VALLEY FINANCIAL CORP. AND SUBSIDIARY
                  ---------------------------------------------
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                 ----------------------------------------------
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
                  --------------------------------------------

                                  (Unaudited)
                                                                                 Accumulated
                                                                                    Other
                                      Common                Retained  Treasury  Comprehensive
                                      Stock     Surplus     Earnings    Stock       Income      Total
                                      -----     -------     --------    -----       ------      -----

                                                                  (In thousands)


<S>                                  <C>        <C>         <C>        <C>          <C>       <C>

BALANCE,
  December 31, 1999                  $ 2,332    $ 20,559    $ 23,665   $(3,403)     $  102    $ 43,255
                                                                                              --------
Net income for the
  nine months ended
  September 30, 2000                      --          --       3,260        --          --       3,260

Change in unrealized
  gains (losses) on
  securities available
  for sale, net of
  reclassification
  adjustment and tax
  effects                                 --          --          --        --          64          64
                                                                                              --------


    Total Comprehensive Income                                                                   3,324
                                                                                              --------

Treasury stock acquired                   --          --          --    (1,812)         --      (1,812)

Treasury stock issued for
  dividend reinvestment plan
  (7,516 shares)                          --         (77)         --       272          --         195

Treasury stock issued for
  employee stock purchase
  plan (39 shares)                        --          --          --         2          --           2

Cash dividends, $.82 per share            --          --      (2,022)       --          --      (2,022)
                                     -------    --------    --------   -------      ------    --------

Balance September 30, 2000           $ 2,332    $ 20,482    $ 24,903   $(4,941)     $  166    $ 42,942
                                     =======    ========    ========   =======      ======    ========

</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,
                                                             2001               2000
                                                         -------------     -------------
                                                                 (In thousands)
<S>                                                        <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                              $  3,372           $  3,260
   Adjustments to reconcile net income to net
     cash provided by operating activities:
   Provision for loan losses                                    180                135
   Provision for depreciation                                   284                237
   Net amortization on securities premium                       146                138
   Deferred directors' fees and supplemental
     retirement plan expense                                    332                192
   Earnings on life insurance                                  (238)               (56)
   Payment of deferred compensation                            (211)              (129)
   Deferred income taxes                                       (107)               (53)
   Increase in accrued interest receivable and
     other assets                                              (379)              (471)
   Increase in interest payable and other liabilities           399                124
                                                           --------           --------
        Net cash provided by operating activities             3,778              3,377
                                                           --------           --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of available for sale securities               (28,655)              (861)
   Proceeds from maturities of and principal
     repayments on available for sale securities             12,664              8,932
   Purchases of held to maturity securities                      --               (701)
   Proceeds from maturities of and principal
     repayments on held to maturity securities               12,488              6,401
   Net increase in loans receivable                          (8,574)           (12,986)
   Net purchases of bank premises and equipment                (369)            (2,167)
   Purchase of life insurance                                (5,000)                --
                                                           --------           --------

        Net cash used in investing activities               (17,446)            (1,382)
                                                           --------           --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Net increase in deposits                                  15,304              5,340
   Net decrease in short-term borrowings                         --             (5,300)
   Cash dividends and cash paid for fractional shares          (933)            (2,022)
   Purchase of treasury stock                                  (497)            (1,812)
Stock issued for dividend reinvestment and employee
     stock purchase plan                                        205                197
                                                           --------           --------

        Net cash provided used in financing activities       14,079             (3,597)
                                                           --------           --------
        Increase (decrease) in cash and cash equivalents        411             (1,602)

CASH AND CASH EQUIVALENTS:
   Beginning                                                 15,697             16,034
                                                           --------           --------
   Ending                                                  $ 16,108           $ 14,432
                                                           ========           ========

CASH PAYMENTS FOR:
   Interest                                                $  9,115           $  8,746
                                                           ========           ========
   Income Taxes                                            $    675           $  1,140
                                                           ========           ========

</TABLE>

<PAGE>



                                                                              7.

NOTE A - Basis of Presentation

The financial information includes the accounts of the 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, 2001 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2001. 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, 2000.


NOTE B - Accounting Standards

The Financial Accounting Standards Board issued Statement No. 140, "Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities", in September 2000. This Statement replaces SFAS No. 125 of the
same name. It revises the standards of securitization and other transfers of
financial assets and collateral and requires certain disclosures, but carries
over most of the provisions of SFAS No. 125 without reconsideration. SFAS No.
140 is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after March 31, 2001. The Statement is
effective for fiscal year ended December 15, 2000. This Statement is to be
applied prospectively with certain exceptions. Other than these exceptions,
earlier or retroactive application of its accounting provision is not permitted.

In June of 2001, the Financial Accounting Standards Board issued Statement No.
141, "Business Combinations", and Statement No. 142, "Goodwill and Other
Intangible Assets".

Statement No. 141 requires all business combinations to be accounted for using
the purchase method of accounting as use of the pooling of interests method is
prohibited. In addition, this Statement requires that negative goodwill that
exists after the basis of certain acquired assets is reduced to zero should be
recognized as an extraordinary gain. The provisions of this Statement apply to
all business combinations initiated after June 30, 2001.

Statement No. 142 prescribes that goodwill associated with a business
combination and intangible assets with an indefinite useful life should not be
amortized but should be tested for impairment at least annually. The Statement
requires intangibles that are separable from goodwill and that have a
determinable useful life to be amortized over the determinable useful life. The
provisions of this Statement will become effective for the Bank in January of
2002. Upon adoption of this Statement, goodwill and other intangible assets
arising from acquisitions completed before July 1, 2001 should be accounted for
in accordance with the provisions of this Statement. This transition provision
could require classification of a previously separately recognized intangible to
goodwill and vice versa if the intangibles in question do not meet the new
criteria for classification as a separately recognizable intangible.

In July of 2001, the Financial Accounting Standards Board issued Statement No.
143, "Accounting for Asset Retirement Obligations", which addresses the
financial accounting and reporting for obligations associated with the
retirement of tangible long-lived assets and the associated asset retirement
costs. This Statement requires that the fair value of a liability for an asset
retirement obligation be recognized in the period in which it is incurred if a
reasonable

<PAGE>


                                                                              8.

estimate of fair value can be made. The associated asset retirement costs are
capitalized as part of the carrying amount of the long-lived asset. This
Statement will become effective for the Bank on January 1, 2003.

The Financial Accounting Standards Board issued Statement No. 144, "Accounting
for the Impairment or Disposal of Long-Lived Assets", in August 2001. This
Statement supersedes Statement No. 121 of the same name and the accounting and
reporting provisions of APB Opinion No. 30, "Reporting the Results of
Operations-Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions for
the disposal of a segment of a business". This Statement also amends ARB 51,
"Consolidated Financial Statements". Because Statement No. 121 did not address
the accounting for a segment of a business accounted for as a discontinued
operation under Opinion 30, two accounting models existed for long-lived assets
to be disposed of . The Board decided to establish a single accounting model,
based on the framework established in Statement No. 121, for long-lived assets
to be disposed of as a sale.

Adoption of these Statements is not expected to have a material impact on the
Bank's financial condition or results of operations.


<PAGE>


                                                                              9.

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 $353,578,000 as of
September 30, 2001, an increase of $18,664,000 or 5.57% from December 31, 2000.
This increase is a result of the increase in deposits of $15,304,000. These
deposits were used to fund loan demand of $8,574,000 and bank owned life
insurance of $5,000,000 to fund directors' retirement and a salary continuation
plan for key employees. Because the Federal Reserve lowered interest rates by
350 basis points from January to September 30, 2001 proceeds from called and
matured securities were $25,152,000; however the bank was able to purchase
securities of $28,655,000 that fit investment policy guidelines. Loan demand in
2001 has not been as strong as the loan demand in 2000. Some of this decrease in
demand between 2000 and 2001 can be attributed to consumers uncertainty of the
market place and their reluctance to take on more debt. All of this resulted in
an increase in cash and cash equivalents of $411,000.

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>


                                                                             10.

Results of Operations:

Interest income increased $401,000 or 2.19% for the first nine months of 2001
over 2000. For the quarter there was a decrease of $78,000 or 1.24%. The
increase for nine months came from interest income on loans. The increase in
loan income for nine months was $930,000. Interest income on securities has
declined $761,000 for the nine month period ended September 30, 2001. This
decline can be attributed to the lower rates being offered on securities
purchased versus rates on called and matured securities. The increase of
$232,000 for nine months in interest income on other can be attributed to the
dollar amount of federal funds sold in 2001 versus 2000. Interest expense
increased by $446,000 or 5.11% for the first nine months of 2001; however there
was a decrease of $36,000 or 1.17% for the quarter. Interest income and expense
for the first nine months ended September 30, 2001, versus 2000, are reflective
of an increase of both interest earning assets and interest bearing liabilities
even though overall rates offered and paid in 2001 versus 2000 were lower. The
numbers presented for the quarter reflect the declining interest rate
environment for both interest earning assets and interest bearing liabilities.
This resulted in a decrease in net interest income of $45,000 or .47% for the
nine months ended September 30, 2001 and $42,000 or 1.31% for the quarter.

The increase in the allowance for loan losses 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, 2001 were $130,000 compared to $67,000 at September
30, 2000. Past due and nonaccrual loans at September 30, 2001 were $3,684,000.
At September 30, 2000, this amount for past due and non-accrual loans was
$2,721,000. Depending upon the state of the economy and the impact thereon to
these borrowers, these loans and others not currently so identified could be
classified as non-performing assets in the future. The increase in the provision
is not reflective of a decline in underwriting standards or potential problem
loans.

Other income has increased $410,000 or 39.84% for the first nine months and
$186,000 or 57.59% for the quarter in 2001 over 2000. Trust department income
has increased $78,000, customer service fees have increased $63,000 and other
income has increased $269,000. The increase in trust department income is a
result of the settlement of six estates. 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 a bank owned life insurance policy
put into place in March of 2001 which added $182,000, and an increase in mutual
fund commissions of $64,000.

Other expenses increased $337,000 or 5.52% for the nine months and $113,000 or
5.58% for the quarter ended September 30, 2001. The $87,000 decrease in salary
and wages for the nine months ended September 30, 2001 compared to 2000, can be
attributed to a decrease of five full time equivalents. The $57,000 increase in
employee benefits is reflective of increases in costs as opposed to additional
benefits. The $53,000 increase in occupancy is a result of increased costs for
the financial center that was occupied in December 2000. The $185,000 increase
in equipment cost is from the purchase of additional equipment for the
operations center and maintenance of the equipment. The $60,000 increase in
director's fees is from a retirement plan put into place in 2001 which is funded
by the bank owned life insurance mentioned above. The $19,000 increase in taxes,
other than income is an increase in Pennsylvania Bank Shares Tax. The $50,000
increase in other expenses can be attributed to the outsourcing of the internal
audit and loan review function. The decrease in federal income taxes is due to
the tax favored treatment of the bank owned life insurance plan.

All of these factors combined have contributed to an increase in net income of
$112,000 or 3.44% for the nine months and no change in the quarter ended
September 30, 2001.

<PAGE>


                                                                             11.

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 and 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, 2001, the Corporation had a six-month negative gap of
$25,012,000. 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.


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,
                                      2001           2000         2001             2000
                                  -------------  ------------  -------------  ------------


<S>                                  <C>            <C>           <C>              <C>
TIER I                               17.92%         18.46%        4.0%             4.0%
TIER I & II                          19.00%         19.59%        8.0%             8.0%

Total Assets Leveraged Ratio:

TIER I                               12.09%         12.30%        4.0%             4.0%

</TABLE>

At September 30, 2001, the Corporation and the Bank exceed the regulatory
requirements to be considered a "well capitalized" financial institution.

<PAGE>

                                                                             12.

Quantitative and Qualitative Disclosures About Market Risk:

As mentioned earlier from January 1, 2001 to September 30, 2001, the Federal
Reserve has lowered the federal funds rate eight times by 350 basis points. We
are currently in the lowest interest rate environment in 40 years. Net interest
margin for the Bank was 4.06% at December 31, 2000 and decreased to 3.93% at
September 30, 2001. Because of the extent to which rates have declined this
year, the Bank has become more sensitive to future rate declines and expects
added compression of the net interest margin. Currently, the Bank has 30.18% 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 ability to further decrease these deposits rates while loan and
other earning assets continue to drop and re-price 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, 2001, showed a possible decline
in net interest income of $382,000 in a -200 basis point rate shock over a one
year period. This reflected a change in the assumptions that the rates on NOW
and savings account would remain constant in a +/-200 basis point rate shock.
The Bank has actually reduced these rates since June 30, 2001, which should help
to mitigate the impact on the net interest margin. 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, 2000 for further
discussion of this matter.


<PAGE>


                                                                             13.

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
             None

             Form 8-K
             None

Pursuant to the requirements of the Securities 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
     ---------------------------           ------------------------------------
                                            Francis J. Evanitsky, President


Date                                    By
     ----------------------------          ------------------------------------
                                            Linda L. Engle, Treasurer



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