Business Description
Juniata operates primarily in central and northern Pennsylvania with the purpose
of delivering financial services within its local markets. The Company provides
retail and commercial banking services through 15 offices in the following locations:
five community offices in Juniata County; five community offices in Mifflin
County, as well as a financial services office; two community offices in McKean
County; one community office in each of Potter, Perry and Huntingdon Counties;
and a loan production office in Centre County. The Company offers a full range
of consumer and commercial banking services. Consumer banking services include:
Internet banking; mobile banking; telephone banking; twelve automated teller
machines; personal checking accounts; club accounts; checking overdraft privileges;
money market deposit accounts; savings accounts; debit cards; certificates of
deposit; individual retirement accounts; secured lines of credit; construction
and mortgage loans; and safe deposit boxes. Commercial banking services include:
low and high-volume business checking accounts; Internet account management
services; remote deposit capability; ACH origination; payroll direct deposit;
commercial lines of credit; commercial letters of credit; and commercial term
and demand loans. The Bank provides comprehensive trust, asset management and
estate services, and the Company has a contractual arrangement with a broker-dealer
to offer a full range of financial services, including annuities, mutual funds,
stock and bond brokerage services and long-term care insurance to the Bank’s
customers. Management believes the Bank has a relatively stable deposit base
with no major seasonal depositor or group of depositors. Most of the Company’s
commercial customers are small and mid-sized businesses in central and northern
Pennsylvania.
Juniata’s loan underwriting policies are updated periodically and are
presented for approval to the Board of Directors of the Bank. The purpose of
the policies is to grant loans on a sound and collectible basis, to invest available
funds in a safe, profitable manner, to serve the credit needs of the communities
in Juniata’s primary market area and to ensure that all loan applicants
receive fair and equal treatment in the lending process. It is the intent of
the underwriting policies to seek to minimize loan losses by requiring careful
investigation of the credit history of each applicant, verifying the source
of repayment and the ability of the applicant to repay, securing those loans
in which collateral is deemed to be required, exercising care in the documentation
of the application, review, approval and origination process and administering
a comprehensive loan collection program.
The major types of investments held by Juniata consist of obligations and securities
issued by U.S. government agencies or corporations, obligations of state and
local political subdivisions, mortgage-backed securities and common stock. Juniata’s
investment policy directs that investments be managed in a way that provides
necessary funding for the Company’s liquidity needs and adequate collateral
to pledge for public funds held and, as directed by the Asset Liability Committee,
manages interest rate risk. The investment policy specifies the types of permitted
investments owned, addresses credit quality of investments and includes limitations
by investment types and issuer.
The Company’s primary source of funds is deposits, consisting of transaction
type accounts, such as demand deposits and savings accounts, and time deposits,
such as certificates of deposit. The majority of deposits are held by customers
residing or located in Juniata’s market area. No material portion of the
deposits has been obtained from a single or small group of customers, and the
Company believes that the loss of any customer’s deposits or a small group
of customers’ deposits would not have a material adverse effect on the
Company.
Other sources of funds used by the Company include retail repurchase agreements,
borrowings from the Federal Home Loan Bank of Pittsburgh and lines of credit
established with various correspondent banks for overnight funding.
0.82% 
10.3 %