##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT 1934
 For the quarterly period ended June 30, 2007
 OR
 o
    
    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 000-13232
 Juniata Valley Financial Corp.
 
  Pennsylvania
    
    23-2235254(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 Bridge and Main Streets, Mifflintown, Pennsylvania
    
    17059(Address of principal executive offices)
    
    (Zip Code)
  
  þ o
  o þ o
 o þ
  Class
    
    Outstanding as of August 8, 2007Common Stock ($1.00 par value)
    
    4,434,120 shares
   1




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##### 



TABLE OF CONTENTS
 PART I  FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsConsolidated Statements of Financial Condition
as of June 30, 2007 and December 31, 2006 (Unaudited)
    
    
    3Consolidated Statements of Income for the Three and Six
Months Ended June 30, 2007 and 2006 (Unaudited)
    
    
    4Consolidated Statements of Changes in Stockholders Equity
for the Six Months Ended June 30, 2007 and 2006 (Unaudited)
    
    
    5Consolidated Statements of Cash Flows for the Six
Months Ended June 30, 2007 and 2006 (Unaudited)
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2.
    
    Managements Discussion and Analysis
of Financial Condition and Results of Operations
    
    
    11Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    18Item 4.
    
    Controls and Procedures
    
    
    18PART II  OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    
    19Item 1A.
    
    Risk Factors
    
    
    19Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    19Item 3.
    
    Defaults upon Senior Securities
    
    
    19Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    20Item 5.
    
    Other Information
    
    
    20Item 6.
    
    Exhibits
    
    
    20Signatures
    
    
    21
 2




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##### 



PART I  FINANCIAL INFORMATION
 Item 1. Financial Statements
 Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Financial Condition
 June 30,
    
    
    December 31,2007
    
    
    2006ASSETSCash and due from banks
    
    $
    11,184
    
    
    $
    16,476Interest bearing deposits with banks
    
    
    88
    
    
    
    102Federal funds sold
    
    
    2,500
    
    
    
    1,200Cash and cash equivalents
    
    
    13,772
    
    
    
    17,778Interest bearing time deposits with banks
    
    
    5,525
    
    
    
    5,660Securities available for sale
    
    
    73,304
    
    
    
    56,383Securities held to maturity, fair value of $3,955 and $2,480, respectively
    
    
    3,955
    
    
    
    2,500Restricted investment in Federal Home Loan Bank (FHLB) stock
    
    
    968
    
    
    
    1,076Investment in unconsolidated subsidiary
    
    
    2,887
    
    
    
    2,892Total loans, net of unearned interest
    
    
    301,036
    
    
    
    305,818Less: Allowance for loan losses
    
    
    (2,526
    )
    
    
    (2,572
    )Total loans, net of allowance for loan losses
    
    
    298,510
    
    
    
    303,246Premises and equipment, net
    
    
    6,337
    
    
    
    6,542Bank owned life insurance and annuities
    
    
    11,280
    
    
    
    11,017Core deposit intangible
    
    
    411
    
    
    
    434Goodwill
    
    
    2,046
    
    
    
    2,046Accrued interest receivable and other assets
    
    
    6,494
    
    
    
    6,357Total assets
    
    $
    425,489
    
    
    $
    415,931LIABILITIES AND STOCKHOLDERS EQUITYLiabilities:Deposits:Non-interest bearing
    
    $
    45,110
    
    
    $
    42,829Interest bearing
    
    
    319,763
    
    
    
    312,340Total deposits
    
    
    364,873
    
    
    
    355,169Securities sold under agreements to repurchase
    
    
    6,515
    
    
    
    6,112Other interest bearing liabilities
    
    
    977
    
    
    
    927Accrued interest payable and other liabilities
    
    
    6,097
    
    
    
    5,937Total liabilities
    
    
    378,462
    
    
    
    368,145Stockholders Equity:Preferred stock, no par value:Authorized - 500,000 shares, none issuedCommon stock, par value $1.00 per share:Authorized - 20,000,000 sharesIssued - 4,745,826 sharesOutstanding -4,434,120 shares at June 30, 2007;4,457,934 shares at December 31, 2006
    
    
    4,746
    
    
    
    4,746Surplus
    
    
    18,274
    
    
    
    18,259Retained earnings
    
    
    31,506
    
    
    
    31,531Accumulated other comprehensive loss
    
    
    (1,342
    )
    
    
    (1,098
    )Cost of common stock in Treasury:311,706 shares at June 30, 2007;287,892 shares at December 31, 2006
    
    
    (6,157
    )
    
    
    (5,652
    )Total stockholders equity
    
    
    47,027
    
    
    
    47,786Total liabilities and stockholders equity
    
    $
    425,489
    
    
    $
    415,931
  3




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##### 



Juniata Valley Financial Corp. and Subsidiary
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest income:Loans, including fees
    
    $
    5,733
    
    
    $
    5,379
    
    
    $
    11,353
    
    
    $
    10,581Taxable securities
    
    
    607
    
    
    
    488
    
    
    
    1,113
    
    
    
    986Tax-exempt securities
    
    
    192
    
    
    
    159
    
    
    
    363
    
    
    
    323Federal funds sold
    
    
    108
    
    
    
    
    
    
    
    196
    
    
    
    Other interest income
    
    
    64
    
    
    
    60
    
    
    
    126
    
    
    
    120Total interest income
    
    
    6,704
    
    
    
    6,086
    
    
    
    13,151
    
    
    
    12,010Interest expense:Deposits
    
    
    2,698
    
    
    
    2,297
    
    
    
    5,291
    
    
    
    4,450Securities sold under agreements to repurchase
    
    
    68
    
    
    
    55
    
    
    
    134
    
    
    
    103Short-term borrowings
    
    
    
    
    
    
    88
    
    
    
    
    
    
    
    180Long-term debt
    
    
    
    
    
    
    37
    
    
    
    
    
    
    
    72Other interest bearing liabilities
    
    
    10
    
    
    
    6
    
    
    
    19
    
    
    
    11Total interest expense
    
    
    2,776
    
    
    
    2,483
    
    
    
    5,444
    
    
    
    4,816Net interest income
    
    
    3,928
    
    
    
    3,603
    
    
    
    7,707
    
    
    
    7,194Provision for loan losses
    
    
    23
    
    
    
    30
    
    
    
    90
    
    
    
    60Net interest income after provision for loan losses
    
    
    3,905
    
    
    
    3,573
    
    
    
    7,617
    
    
    
    7,134Noninterest income:Trust fees
    
    
    106
    
    
    
    88
    
    
    
    223
    
    
    
    224Customer service fees
    
    
    421
    
    
    
    381
    
    
    
    808
    
    
    
    723Earnings on bank-owned life insurance and annuities
    
    
    117
    
    
    
    92
    
    
    
    221
    
    
    
    184Comnmissions from sales of non-deposit products
    
    
    144
    
    
    
    180
    
    
    
    370
    
    
    
    263Income from unconsolidated subsidiary
    
    
    43
    
    
    
    
    
    
    
    84
    
    
    
    Gain on sale of loans and other assets
    
    
    17
    
    
    
    10
    
    
    
    29
    
    
    
    23Gain (loss) on sale of securities
    
    
    (8
    )
    
    
    
    
    
    
    (8
    )
    
    
    67Securities impairment charge
    
    
    (33
    )
    
    
    
    
    
    
    (33
    )
    
    
    Other noninterest income
    
    
    174
    
    
    
    150
    
    
    
    325
    
    
    
    287Total noninterest income
    
    
    981
    
    
    
    901
    
    
    
    2,019
    
    
    
    1,771Noninterest expense:Employee compensation expense
    
    
    1,303
    
    
    
    1,146
    
    
    
    2,490
    
    
    
    2,232Employee benefits
    
    
    348
    
    
    
    360
    
    
    
    752
    
    
    
    738Occupancy
    
    
    218
    
    
    
    203
    
    
    
    456
    
    
    
    405Equipment
    
    
    177
    
    
    
    151
    
    
    
    344
    
    
    
    307Data processing expense
    
    
    331
    
    
    
    243
    
    
    
    655
    
    
    
    560Director compensation
    
    
    116
    
    
    
    124
    
    
    
    235
    
    
    
    249Professional fees
    
    
    110
    
    
    
    100
    
    
    
    214
    
    
    
    186Taxes, other than income
    
    
    148
    
    
    
    132
    
    
    
    286
    
    
    
    246Amortization of intangibles
    
    
    12
    
    
    
    
    
    
    
    23
    
    
    
    Other noninterest expense
    
    
    309
    
    
    
    308
    
    
    
    585
    
    
    
    588Total noninterest expense
    
    
    3,072
    
    
    
    2,767
    
    
    
    6,040
    
    
    
    5,511Income before income taxes
    
    
    1,814
    
    
    
    1,707
    
    
    
    3,596
    
    
    
    3,394Provision for income taxes
    
    
    500
    
    
    
    487
    
    
    
    1,003
    
    
    
    970Net income
    
    $
    1,314
    
    
    $
    1,220
    
    
    $
    2,593
    
    
    $
    2,424Earnings per shareBasic
    
    $
    0.30
    
    
    $
    0.27
    
    
    $
    0.58
    
    
    $
    0.54Diluted
    
    $
    0.30
    
    
    $
    0.27
    
    
    $
    0.58
    
    
    $
    0.54Cash dividends declared per share
    
    $
    0.42
    
    
    $
    0.16
    
    
    $
    0.59
    
    
    $
    0.32Weighted average basic shares outstanding
    
    
    4,437,527
    
    
    
    4,491,423
    
    
    
    4,443,834
    
    
    
    4,490,836Weighted average diluted shares outstanding
    
    
    4,447,006
    
    
    
    4,505,657
    
    
    
    4,453,367
    
    
    
    4,505,408
  4




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##### 



Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Changes in Stockholders Equity
 Six Months Ended June 30, 2007Number
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accumulatedof
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    TotalShares
    
    Common
    
    
    
    
    
    Retained
    
    Comprehensive
    
    Treasury
    
    Stockholders'Outstanding
    
    Stock
    
    Surplus
    
    Earnings
    
    Loss
    
    Stock
    
    EquityBalance at December 31, 2006
    
    
    4,457,934
    
    
    $
    4,746
    
    
    $
    18,259
    
    
    $
    31,531
    
    
    $
    (1,098
    )
    
    $
    (5,652
    )
    
    $
    47,786Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,593
    
    
    
    
    
    
    
    
    
    
    
    2,593Change in unrealized losses on
securities
available for sale, net of
reclassification
adjustment and tax effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (244
    )
    
    
    
    
    
    
    (244
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,349Cash dividends at $0.59 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,618
    )
    
    
    
    
    
    
    
    
    
    
    (2,618
    )Stock-based compensation activity
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Purchase of treasury stock, at cost
    
    
    (26,500
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (557
    )
    
    
    (557
    )Treasury stock issued for stock option
and stock purchase plans
    
    
    2,686
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    52
    
    
    
    47Balance at June 30, 2007
    
    
    4,434,120
    
    
    $
    4,746
    
    
    $
    18,274
    
    
    $
    31,506
    
    
    $
    (1,342
    )
    
    $
    (6,157
    )
    
    $
    47,027
 Six Months Ended June 30, 2006Number
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accumulatedof
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    TotalShares
    
    Common
    
    
    
    
    
    Retained
    
    Comprehensive
    
    Treasury
    
    Stockholders'Outstanding
    
    Stock
    
    Surplus
    
    Earnings
    
    Loss
    
    Stock
    
    EquityBalance at December 31, 2005
    
    
    4,503,392
    
    
    $
    4,746
    
    
    $
    18,177
    
    
    $
    29,486
    
    
    $
    (694
    )
    
    $
    (4,596
    )
    
    $
    47,119Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,424
    
    
    
    
    
    
    
    
    
    
    
    2,424Change in unrealized losses on securities
available for sale, net of reclassification adjustment and tax effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (82
    )
    
    
    
    
    
    
    (82
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,342Cash dividends at $0.32 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,435
    )
    
    
    
    
    
    
    
    
    
    
    (1,435
    )Stock-based compensation activity
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18Purchase of treasury stock, at cost
    
    
    (22,000
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (531
    )
    
    
    (531
    )Treasury stock issued for dividend reinvestment plan and employee stock
purchase plan
    
    
    11,874
    
    
    
    
    
    
    
    48
    
    
    
    
    
    
    
    
    
    
    
    231
    
    
    
    279Balance at June 30, 2006
    
    
    4,493,266
    
    
    $
    4,746
    
    
    $
    18,243
    
    
    $
    30,475
    
    
    $
    (776
    )
    
    $
    (4,896
    )
    
    $
    47,792
  5




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##### 



Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Cash Flows
 Six Months Ended June 30,2007
    
    
    2006Operating activities:Net income
    
    $
    2,593
    
    
    $
    2,424Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    90
    
    
    
    60Provision for depreciation
    
    
    323
    
    
    
    290Net amortization of securities premiums
    
    
    72
    
    
    
    62Amortization of core deposit intangible
    
    
    23
    
    
    
    Security impairment charge
    
    
    33
    
    
    
    Net loss (gain) on sales of securities
    
    
    8
    
    
    
    (67
    )Gains on sales of loans and other assets
    
    
    (29
    )
    
    
    (23
    )Earnings on investment in life insurance
    
    
    (221
    )
    
    
    (184
    )Deferred income tax credit
    
    
    (3
    )
    
    
    (86
    )Equity in earnings of unconsolidated subsidiary, net of
dividends of $87
    
    
    3
    
    
    
    Stock-based compensation expense
    
    
    20
    
    
    
    18Increase in accrued interest receivable and other assets
    
    
    (148
    )
    
    
    (998
    )Increase in accrued interest payable and other liabilities
    
    
    210
    
    
    
    233Net cash provided by operating activities
    
    
    2,974
    
    
    
    1,729Investing activities:Purchases of:Securities available for sale
    
    
    (34,639
    )
    
    
    (235
    )Securities held to maturity
    
    
    (3,955
    )
    
    
    (5,100
    )FHLB stock
    
    
    
    
    
    
    (503
    )Premises and equipment
    
    
    (118
    )
    
    
    (49
    )Bank owned life insurance and annuities
    
    
    (81
    )
    
    
    (78
    )Proceeds from:Sales of securities available for sale
    
    
    591
    
    
    
    137Maturities of and principal repayments on
securities available for sale
    
    
    16,646
    
    
    
    7,445Maturities of securities held to maturity
    
    
    2,500
    
    
    
    Redemption of FHLB stock
    
    
    108
    
    
    
    297Bank owned life insurance and annuities
    
    
    39
    
    
    
    130Sale of other real estate owned
    
    
    191
    
    
    
    572Net decrease in interest-bearing time deposits
    
    
    135
    
    
    
    Net decrease (increase) in loans receivable
    
    
    4,624
    
    
    
    (5,822
    )Net cash used in investing activities
    
    
    (13,959
    )
    
    
    (3,206
    )Financing activities:Net increase (decrease) in deposits
    
    
    9,704
    
    
    
    (910
    )Net increase (decrease) in short-term borrowings and securities
sold under agreements to repurchase
    
    
    403
    
    
    
    (2,218
    )Cash dividends
    
    
    (2,618
    )
    
    
    (1,435
    )Purchase of treasury stock
    
    
    (557
    )
    
    
    (531
    )Treasury stock issued for dividend reinvestment
and employee stock purchase plan
    
    
    47
    
    
    
    279Net cash provided by (used in) financing activities
    
    
    6,979
    
    
    
    (4,815
    )Net decrease in cash and cash equivalents
    
    
    (4,006
    )
    
    
    (6,292
    )Cash and cash equivalents at beginning of period
    
    
    17,778
    
    
    
    16,439Cash and cash equivalents at end of period
    
    $
    13,772
    
    
    $
    10,147Supplemental information:Interest paid
    
    $
    5,447
    
    
    $
    4,777Income taxes paid
    
    $
    1,025
    
    
    $
    1,005Supplemental schedule of noncash investing and financing activities:Transfer of loans to other real estate owned
    
    $
    52
    
    
    $
    548
  6




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##### 



Juniata Valley Financial Corp. and Subsidiary
          7




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##### 



Three Months Ended June 30, 2007
    
    
    Three Months Ended June 30, 2006Before
    
    
    Tax Expense
    
    
    
    
    
    
    Before
    
    
    Tax ExpenseTax
    
    
    or
    
    
    Net-of-Tax
    
    
    Tax
    
    
    or
    
    
    Net-of-TaxAmount
    
    
    (Benefit)
    
    
    Amount
    
    
    Amount
    
    
    (Benefit)
    
    
    AmountNet income
    
    $
    1,814
    
    
    $
    500
    
    
    $
    1,314
    
    
    $
    1,707
    
    
    $
    487
    
    
    $
    1,220Other comprehensive income (loss):Unrealized gains (losses) on available for sale
securities:Unrealized gains (losses) arising during the period
    
    
    (476
    )
    
    
    (162
    )
    
    
    (314
    )
    
    
    (14
    )
    
    
    (5
    )
    
    
    (9
    )Less reclassification adjustment for:losses included in net income
    
    
    8
    
    
    
    3
    
    
    
    5
    
    
    
    
    
    
    
    
    
    
    
    securities impairment charge
    
    
    33
    
    
    
    11
    
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    Other comprehensive loss
    
    
    (435
    )
    
    
    (148
    )
    
    
    (287
    )
    
    
    (14
    )
    
    
    (5
    )
    
    
    (9
    )Total comprehensive income
    
    $
    1,379
    
    
    $
    352
    
    
    $
    1,027
    
    
    $
    1,693
    
    
    $
    482
    
    
    $
    1,211
 Six Months Ended June 30, 2007
    
    
    Six Months Ended June 30, 2006Before
    
    
    Tax Expense
    
    
    
    
    
    
    Before
    
    
    Tax ExpenseTax
    
    
    or
    
    
    Net-of-Tax
    
    
    Tax
    
    
    or
    
    
    Net-of-TaxAmount
    
    
    (Benefit)
    
    
    Amount
    
    
    Amount
    
    
    (Benefit)
    
    
    AmountNet income
    
    $
    3,596
    
    
    $
    1,003
    
    
    $
    2,593
    
    
    $
    3,394
    
    
    $
    970
    
    
    $
    2,424Other comprehensive income (loss):Unrealized gains (losses) on available for sale
securities:Unrealized gains (losses) arising during the period
    
    
    (411
    )
    
    
    (140
    )
    
    
    (271
    )
    
    
    (57
    )
    
    
    (19
    )
    
    
    (38
    )Less reclassification adjustment for:losses (gains) included in net income
    
    
    8
    
    
    
    3
    
    
    
    5
    
    
    
    (67
    )
    
    
    (23
    )
    
    
    (44
    )securities impairment charge
    
    
    33
    
    
    
    11
    
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    Other comprehensive loss
    
    
    (370
    )
    
    
    (126
    )
    
    
    (244
    )
    
    
    (124
    )
    
    
    (42
    )
    
    
    (82
    )Total comprehensive income
    
    $
    3,226
    
    
    $
    877
    
    
    $
    2,349
    
    
    $
    3,270
    
    
    $
    928
    
    
    $
    2,342
 8




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##### 



(Amounts, except earnings per share, in thousands)
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedJune 30, 2007
    
    
    June 30, 2006Net income
    
    $
    1,314
    
    
    $
    1,220Weighted-average common shares outstanding
    
    
    4,438
    
    
    
    4,491Basic earnings per share
    
    $
    0.30
    
    
    $
    0.27Weighted-average common shares outstanding
    
    
    4,438
    
    
    
    4,491Common stock equivalents due to effect of stock options
    
    
    9
    
    
    
    15Total weighted-average common shares and equivalents
    
    
    4,447
    
    
    
    4,506Diluted earnings per share
    
    $
    0.30
    
    
    $
    0.27
 Six Months
    
    
    Six MonthsEnded
    
    
    EndedJune 30, 2007
    
    
    June 30, 2006Net income
    
    $
    2,593
    
    
    $
    2,424Weighted-average common shares outstanding
    
    
    4,444
    
    
    
    4,491Basic earnings per share
    
    $
    0.58
    
    
    $
    0.54Weighted-average common shares outstanding
    
    
    4,444
    
    
    
    4,491Common stock equivalents due to effect of stock options
    
    
    9
    
    
    
    15Total weighted-average common shares and equivalents
    
    
    4,453
    
    
    
    4,506Diluted earnings per share
    
    $
    0.58
    
    
    $
    0.54
    9




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##### 



(Dollar amounts in thousands)
 Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006Components of net periodic pension costService cost
    
    $
    69
    
    
    $
    74
    
    
    $
    143
    
    
    $
    148Interest cost
    
    
    96
    
    
    
    92
    
    
    
    195
    
    
    
    184Expected return on plan assets
    
    
    (100
    )
    
    
    (90
    )
    
    
    (190
    )
    
    
    (180
    )Additional recognized amounts
    
    
    13
    
    
    
    18
    
    
    
    26
    
    
    
    36Net periodic pension cost
    
    $
    78
    
    
    $
    94
    
    
    $
    174
    
    
    $
    188
        10




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##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
             11




---



##### 



June 30,
    
    December 31,
    
    Change2007
    
    2006
    
    $
    
    %Deposits:Demand, non-interest bearing
    
    $
    45,110
    
    
    $
    42,829
    
    
    $
    2,281
    
    
    
    5.3
    %NOW and money market
    
    
    86,886
    
    
    
    75,186
    
    
    
    11,700
    
    
    
    15.6
    %Savings
    
    
    35,763
    
    
    
    36,217
    
    
    
    (454
    )
    
    
    (1.3
    %)Time deposits, $100,000 and
more
    
    
    34,926
    
    
    
    38,032
    
    
    
    (3,106
    )
    
    
    (8.2
    %)Other time deposits
    
    
    162,188
    
    
    
    162,905
    
    
    
    (717
    )
    
    
    (0.4
    %)Total deposits
    
    $
    364,873
    
    
    $
    355,169
    
    
    $
    9,704
    
    
    
    2.7
    %
  June 30,
    
    December 31,
    
    Change2007
    
    2006
    
    $
    
    %Loans:Commercial
    
    $
    89,954
    
    
    $
    90,712
    
    
    $
    (758
    )
    
    
    (0.8
    %)Mortgage
    
    
    135,190
    
    
    
    138,654
    
    
    
    (3,464
    )
    
    
    (2.5
    %)Home Equity
    
    
    64,033
    
    
    
    67,249
    
    
    
    (3,216
    )
    
    
    (4.8
    %)Installment, net of unearned
    
    
    11,859
    
    
    
    9,203
    
    
    
    2,656
    
    
    
    28.9
    %Total loans
    
    $
    301,036
    
    
    $
    305,818
    
    
    $
    (4,782
    )
    
    
    (1.6
    %)
  (Dollar amounts in thousands)June 30, 2007
    
    December 31, 2006Non-performing loansNonaccrual loans
    
    $
    852
    
    
    $
    1,240Accruing loans past due 90 days or more
    
    
    810
    
    
    
    214Restructured loans
    
    
    
    
    
    
    Total
    
    $
    1,662
    
    
    $
    1,454Average loans outstanding
    
    $
    301,632
    
    
    $
    303,988Ratio of non-performing loans to average loans outstanding
    
    
    0.55
    %
    
    
    0.48
    %
   12




---



##### 



Periods Ended June 30,2007
    
    
    2006Balance of allowance  January 1
    
    $
    2,572
    
    
    $
    2,764Loans charged off
    
    
    173
    
    
    
    75Recoveries of loans previously
charged off
    
    
    37
    
    
    
    15Net charge-offs
    
    
    136
    
    
    
    60Provision for loan losses
    
    
    90
    
    
    
    60Balance of allowance  end of period
    
    $
    2,526
    
    
    $
    2,764Ratio of net charge-offs during
period to average loans outstanding
    
    
    0.05
    %
    
    
    0.02
    %
     Comparison of the Three Months Ended June 30, 2007 and 2006
    Three Months EndedJune 302007
    
    2006Return on average assets (annualized)
    
    
    1.24
    %
    
    
    1.18
    %Return on average equity (annualized)
    
    
    11.17
    %
    
    
    10.29
    %Average equity to average assets
    
    
    11.08
    %
    
    
    11.51
    %Non-interest income, excluding
securities gains (losses), as a
percentage of average assets
(annualized)
    
    
    0.96
    %
    
    
    0.87
    %Non-interest expense as a percentage
of average assets (annualized)
    
    
    2.89
    %
    
    
    2.69
    %
 13




---



##### 



14




---



##### 



Comparison of the Six Months Ended June 30, 2007 and 2006
    Six Months EndedJune 302007
    
    2006Return on average assets (annualized)
    
    
    1.23
    %
    
    
    1.17
    %Return on average equity (annualized)
    
    
    10.90
    %
    
    
    10.27
    %Average equity to average assets
    
    
    11.30
    %
    
    
    11.47
    %Non-interest income, excluding
securities gains, as a percentage of
average assets (annualized)
    
    
    0.98
    %
    
    
    0.83
    %Non-interest expense as a percentage
of average assets (annualized)
    
    
    2.87
    %
    
    
    2.68
    %
    15




---



##### 



16




---



##### 



17




---



##### 



Item 3. Quantitative and Qualitative Disclosures About Market Risk
   Item 4. Controls and Procedures
 Disclosure Controls and Procedures
    Changes in Internal Control Over Financial Reporting
  18




---



##### 



PART II  OTHER INFORMATION
       Total Number ofShares Purchased as
    
    Maximum Number ofTotal Number
    
    Average
    
    Part of Publicly
    
    Shares that May Yet Beof Shares
    
    Price Paid
    
    Announced Plans or
    
    Purchased Under thePeriod
    
    Purchased
    
    per Share
    
    Programs
    
    Plans or Programs (1)April 1-30, 2007
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    125,466May 1-31, 2007
    
    
    9,300
    
    
    
    20.74
    
    
    
    9,300
    
    
    
    116,166June 1-30, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    116,166Totals
    
    
    9,300
    
    
    $
    20.74
    
    
    
    9,300
    
    
    
    116,166
 
 (1)
    
    On March 23, 2001, the Corporation announced plans to buy back 100,000 (200,000 on a
post-split basis) shares of its common stock. There is no expiration date to this buyback plan,
but subsequent to the initial plan, the repurchase of 400,000 additional shares were authorized by
the Board of Directors. As of August 8, 2007, the number of shares that may yet be purchased under
the program was 116,166. No repurchase plan or program expired during the period covered by the
table. The Corporation has no stock repurchase plan or program that it has determined to terminate
prior to expiration or under which it does not intend to make further purchases.   19




---



##### 



Withhold
    
    Abstentions /Name
    
    For
    
    Authority
    
    Broker Non-votesTimothy I. Havice
    
    
    3,093,836
    
    
    
    34,298
    
    
    
    0Charles L. Hershberger
    
    
    3,105,462
    
    
    
    22,671
    
    
    
    0John A. Renninger
    
    
    3,088,516
    
    
    
    39,617
    
    
    
    0Ronald H. Witherite
    
    
    3,106,359
    
    
    
    21,775
    
    
    
    0
 
            20




---



##### 



Juniata Valley Financial Corp.(Registrant)Date 08-07-2007
    
    
    
    By
    
    /s/ Francis J.Evanitsky

Francis J. Evanitsky, President
and Chief Executive OfficerDate 08-07-2007
    
    
    
    By
    
    /s/ JoAnn N. McMinn

JoAnn N. McMinn, Chief Financial
Officer
 21