WILLIAMSPORT, Pa., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc. achieved net income of $16.6 million for the twelve months ended December 31, 2023, resulting in basic and diluted earnings per share of $2.34.
Highlights
- Net income, as reported under GAAP, for the three and twelve months ended December 31, 2023 was $5.6 million and $16.6 million, compared to $4.5 million and $17.4 million for the same periods of 2022. Results for the three and twelve months ended December 31, 2023 compared to 2022 were impacted by a decrease in net interest income of $1.6 million and $2.8 million, respectively, as interest expense increased significantly due to the velocity and magnitude of the rate increases enacted by the Federal Open Market Committee ("FOMC"). In addition, results were impacted by a decrease in after-tax securities losses of $17,000 (from a loss of $31,000 to a loss of $14,000) for the three month period and a decrease in after-tax securities losses of $147,000 (from a loss of $288,000 to a loss of $141,000) for the twelve month period. Bank-owned life insurance income increased due to a gain on death benefit of $380,000 during the twelve months ended December 31, 2023. The sale of a former branch property resulted in an after-tax gain of $117,000 for the twelve month period ended December 31, 2023, while an after-tax loss of $201,000 related to a branch closure negatively impacted the same period of 2022.
- The provision for credit losses decreased $2.3 million for the three months ended December 31, 2023 and decreased $3.4 million for the twelve months ended December 31, 2023 to a recovery of $1.7 million and $1.5 million, respectively, compared to a provision of $575,000 and $1.9 million for the 2022 periods. The decrease for the three and twelve month periods was due primarily to a recovery on a commercial loan which positively affected the historical loss rates, and the payoff of a nonperforming commercial loan.
- Basic and diluted earnings per share for the three and twelve months ended December 31, 2023 were $0.77 and $2.34, respectively, compared to basic and diluted earnings per share of $0.64 and $2.47 for the three and twelve month periods ended December 31, 2022.
- Annualized return on average assets was 1.02% for three months ended December 31, 2023, compared to 0.92% for the corresponding period of 2022. Annualized return on average assets was 0.79% for the twelve months ended December 31, 2023, compared to 0.90% for the corresponding period of 2022.
- Annualized return on average equity was 12.60% for the three months ended December 31, 2023, compared to 10.92% for the corresponding period of 2022. Annualized return on average equity was 9.84% for the twelve months ended December 31, 2023, compared to 10.73% for the corresponding period of 2022.
Net Income
Net income from core operations ("core earnings"), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains or losses, was $5.6 million and $16.7 million for the three and twelve months ended December 31, 2023 compared to $5.1 million and $18.2 million for the same periods of 2022. Basic and diluted core earnings per share (non-GAAP) for the three and twelve months ended December 31, 2023 were $0.77 and $2.36, respectively, while basic and diluted core earnings per share for the same periods of 2022 were $0.71 and $2.58. Annualized core return on average assets and core return on average equity (non-GAAP) were 1.02% and 12.63% for the three months ended December 31, 2023, compared to 1.04% and 12.25% for the corresponding periods of 2022. Core return on average assets and core return on average equity (non-GAAP) were 0.79% and 9.93% for the twelve months ended December 31, 2023 compared to 0.94% and 11.22% for the corresponding periods of 2022. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, and core earnings per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.
Net Interest Margin
The net interest margin for the three and twelve months ended December 31, 2023 was 2.73% and 2.80%, compared to 3.42% and 3.24% for the corresponding periods of 2022. The decrease in the net interest margin for the three and twelve month periods was driven by an increase in the rate paid on interest-bearing liabilities of 215 and 197 basis points ("bps"), respectively. The FOMC rate increases during 2022 and 2023 contributed to the increases in rate paid on interest-bearing liabilities as the rate paid on short-term borrowings increased 165 bps and 192 bps for the three and twelve month periods ended December 31, 2023 compared to the same periods of 2022. Short-term borrowings increased in volume and rate paid as this funding source was utilized to provide funding for the growth in the loan portfolio, resulting in an increase of $1.3 million and $7.4 million, respectively, in expense for the three and twelve month periods ended December 31, 2023 compared to the same periods of 2022. The rate paid on interest-bearing deposits increased 207 and 168 bps for the three and twelve month periods ended December 31, 2023 compared to the corresponding periods of 2022 due to the FOMC rate actions and an increase in competition for deposits. The rates paid on time deposits significantly contributed to the increase in funding costs as rates paid for the three and twelve month periods ended December 31, 2023 compared to the same periods of 2022 increased 324 bps and 282 bps, respectively, as deposit gathering campaigns initiated in the latter part of 2022 continued throughout 2023. In addition, brokered deposits have been utilized to assist with the funding of the loan portfolio growth and contributed to the increase in time deposit funding costs. Partially offsetting the increase in funding cost was an increase in the yield on interest-earning assets and growth in the average balance of the earning assets portfolio compared to the same periods in 2022. The average loan portfolio balance increased $220.6 million and $263.7 million for the three and twelve month periods as the average yield on the portfolio increased 96 and 81 bps for the same periods. The three and twelve month periods ended December 31, 2023 were impacted by an increase of 81 and 94 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates.
Assets
Total assets increased to $2.2 billion at December 31, 2023, an increase of $204.7 million compared to December 31, 2022. Net loans increased $204.2 million to $1.8 billion at December 31, 2023 compared to December 31, 2022, as continued emphasis was placed on commercial loan growth coupled with growth in indirect auto lending. The investment portfolio increased $2.4 million from December 31, 2022 to December 31, 2023 as restricted investment in bank stock increased $5.2 million resulting from the requirement to hold additional stock in the Federal Home Loan Bank of Pittsburgh ("FHLB") due to an increase in the level of borrowings from the FHLB. The increase in total borrowings of $142.4 million to $398.5 million at December 31, 2023 was utilized to provide funding for the growth in the loan portfolio.
Non-performing Loans
The ratio of non-performing loans to total loans ratio decreased to 0.17% at December 31, 2023 from 0.30% at December 31, 2022, as non-performing loans decreased to $3.1 million at December 31, 2023 from $4.9 million at December 31, 2022. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan recoveries of $525,000 for the twelve months ended December 31, 2023 impacted the allowance for credit losses, which was 0.62% of total loans at December 31, 2023 compared to 0.95% at December 31, 2022 (prior to the adoption of CECL).
Deposits
Deposits increased $33.0 million to $1.6 billion at December 31, 2023 compared to December 31, 2022. Noninterest-bearing deposits decreased $47.9 million to $471.2 million at December 31, 2023 compared to December 31, 2022. Core deposits declined as deposits migrated from core deposit accounts into time deposits as market rates increased due to the FOMC rate increases and increased competition for deposits. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Interest-bearing deposits increased $80.9 million from December 31, 2022 to December 31, 2023 primarily due to increased utilization of brokered deposits of $116.4 million as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued during 2023 with current efforts centered on five to ten months.
Shareholders' Equity
Shareholders' equity increased $23.9 million to $191.6 million at December 31, 2023 compared to December 31, 2022. During the twelve months ended December 31, 2023 the Company sold 420,069 shares of common stock, for net proceeds of $8.3 million, in a registered at-the-market offering. An additional 17,929 shares for net proceeds of $406,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2023. Accumulated other comprehensive loss of $9.2 million at December 31, 2023 decreased from a loss of $14.0 million at December 31, 2022 as a result of a decrease in net unrealized loss on available for sale securities to $6.4 million at December 31, 2023 from a net unrealized loss of $9.8 million at December 31, 2022 coupled with a decrease in loss of $1.4 million in the defined benefit plan obligation. The current level of shareholders' equity equates to a book value per share of $25.51 at December 31, 2023 compared to $23.76 at December 31, 2022, and an equity to asset ratio of 8.69% at December 31, 2023 and 8.40% at December 31, 2022. Dividends declared for the twelve months ended December 31, 2023 and 2022 were $1.28 per share.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates sixteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products. Investment and insurance products are offered through Jersey Shore State Bank's subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.
NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company's performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company's core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This press release may contain certain "forward-looking statements" including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company's organization, compensation and benefit plans; (iii) the effect on the Company's competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies. For a list of other factors which could affect the Company's results, see the Company's filings with the Securities and Exchange Commission, including "Item 1A. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Previous press releases and additional information can be obtained from the Company's website at www.pwod.com.
| Contact: | Richard A. Grafmyre, Chief Executive Officer | |
| 110 Reynolds Street | ||
| Williamsport, PA 17702 | ||
| 570-322-1111 | e-mail: pwod@pwod.com | |
| PENNS WOODS BANCORP, INC. | |||||||||||
| CONSOLIDATED BALANCE SHEET | |||||||||||
| (UNAUDITED) | |||||||||||
| December 31, | |||||||||||
| (In Thousands, Except Share and Per Share Data) | 2023 | 2022 | % Change | ||||||||
| ASSETS: | |||||||||||
| Noninterest-bearing balances | $ | 28,969 | $ | 27,390 | 5.76 | % | |||||
| Interest-bearing balances in other financial institutions | 8,493 | 12,943 | (34.38 | )% | |||||||
| Total cash and cash equivalents | 37,462 | 40,333 | (7.12 | )% | |||||||
| Investment debt securities, available for sale, at fair value | 190,945 | 193,673 | (1.41 | )% | |||||||
| Investment equity securities, at fair value | 1,122 | 1,142 | (1.75 | )% | |||||||
| Restricted investment in bank stock | 24,323 | 19,171 | 26.87 | % | |||||||
| Loans held for sale | 3,993 | 3,298 | 21.07 | % | |||||||
| Loans | 1,839,764 | 1,639,731 | 12.20 | % | |||||||
| Allowance for credit losses | (11,446 | ) | (15,637 | ) | (26.80 | )% | |||||
| Loans, net | 1,828,318 | 1,624,094 | 12.57 | % | |||||||
| Premises and equipment, net | 30,250 | 31,844 | (5.01 | )% | |||||||
| Accrued interest receivable | 11,044 | 9,481 | 16.49 | % | |||||||
| Bank-owned life insurance | 33,867 | 34,452 | (1.70 | )% | |||||||
| Investment in limited partnerships | 7,815 | 8,656 | (9.72 | )% | |||||||
| Goodwill | 16,450 | 16,450 | - | % | |||||||
| Intangibles | 210 | 327 | (35.78 | )% | |||||||
| Operating lease right of use asset | 2,512 | 2,651 | (5.24 | )% | |||||||
| Deferred tax asset | 4,655 | 6,868 | (32.22 | )% | |||||||
| Other assets | 11,843 | 7,640 | 55.01 | % | |||||||
| TOTAL ASSETS | $ | 2,204,809 | $ | 2,000,080 | 10.24 | % | |||||
| LIABILITIES: | |||||||||||
| Interest-bearing deposits | $ | 1,118,320 | $ | 1,037,397 | 7.80 | % | |||||
| Noninterest-bearing deposits | 471,173 | 519,063 | (9.23 | )% | |||||||
| Total deposits | 1,589,493 | 1,556,460 | 2.12 | % | |||||||
| Short-term borrowings | 145,926 | 153,349 | (4.84 | )% | |||||||
| Long-term borrowings | 252,598 | 102,783 | 145.76 | % | |||||||
| Accrued interest payable | 3,814 | 603 | 532.50 | % | |||||||
| Operating lease liability | 2,570 | 2,708 | (5.10 | )% | |||||||
| Other liabilities | 18,852 | 16,512 | 14.17 | % | |||||||
| TOTAL LIABILITIES | 2,013,253 | 1,832,415 | 9.87 | % | |||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
| Preferred stock, no par value, 3,000,000 shares authorized; no shares issued | - | - | n/a | ||||||||
| Common stock, par value $5.55, 22,500,000 shares authorized; 8,019,219 and 7,566,810 shares issued; 7,508,994 and 7,056,585 shares outstanding | 44,550 | 42,039 | 5.97 | % | |||||||
| Additional paid-in capital | 61,733 | 54,252 | 13.79 | % | |||||||
| Retained earnings | 107,238 | 98,147 | 9.26 | % | |||||||
| Accumulated other comprehensive loss: | |||||||||||
| Net unrealized loss on available for sale securities | (6,396 | ) | (9,819 | ) | 34.86 | % | |||||
| Defined benefit plan | (2,754 | ) | (4,139 | ) | 33.46 | % | |||||
| Treasury stock at cost, 510,225 shares | (12,815 | ) | (12,815 | ) | - | % | |||||
| TOTAL SHAREHOLDERS' EQUITY | 191,556 | 167,665 | 14.25 | % | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,204,809 | $ | 2,000,080 | 10.24 | % | |||||
| PENNS WOODS BANCORP, INC. | ||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
| (In Thousands, Except Share and Per Share Data) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
| INTEREST AND DIVIDEND INCOME: | ||||||||||||||||||||||
| Loans including fees | $ | 23,720 | $ | 16,973 | 39.75 | % | $ | 83,291 | $ | 58,682 | 41.94 | % | ||||||||||
| Investment securities: | ||||||||||||||||||||||
| Taxable | 1,476 | 1,084 | 36.16 | % | 5,346 | 3,634 | 47.11 | % | ||||||||||||||
| Tax-exempt | 107 | 229 | (53.28 | )% | 517 | 823 | (37.18 | )% | ||||||||||||||
| Dividend and other interest income | 614 | 319 | 92.48 | % | 2,441 | 1,789 | 36.44 | % | ||||||||||||||
| TOTAL INTEREST AND DIVIDEND INCOME | 25,917 | 18,605 | 39.30 | % | 91,595 | 64,928 | 41.07 | % | ||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||||
| Deposits | 7,445 | 1,499 | 396.66 | % | 22,131 | 3,690 | 499.76 | % | ||||||||||||||
| Short-term borrowings | 2,317 | 978 | 136.91 | % | 8,401 | 1,007 | 734.26 | % | ||||||||||||||
| Long-term borrowings | 2,207 | 580 | 280.52 | % | 6,099 | 2,451 | 148.84 | % | ||||||||||||||
| TOTAL INTEREST EXPENSE | 11,969 | 3,057 | 291.53 | % | 36,631 | 7,148 | 412.47 | % | ||||||||||||||
| NET INTEREST INCOME | 13,948 | 15,548 | (10.29 | )% | 54,964 | 57,780 | (4.87 | )% | ||||||||||||||
| (Recovery) provision for loan credit losses | (1,653 | ) | 575 | (387.48 | )% | (927 | ) | 1,910 | (148.53 | )% | ||||||||||||
| Recovery for off balance sheet credit exposures | (89 | ) | - | n/a | (552 | ) | - | n/a | ||||||||||||||
| TOTAL (RECOVERY) PROVISION FOR CREDIT LOSSES | (1,742 | ) | 575 | (402.96 | )% | (1,479 | ) | 1,910 | (177.43 | )% | ||||||||||||
| NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR CREDIT LOSSES | 15,690 | 14,973 | 4.79 | % | 56,443 | 55,870 | 1.03 | % | ||||||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||||||||
| Service charges | 533 | 540 | (1.30 | )% | 2,090 | 2,103 | (0.62 | )% | ||||||||||||||
| Net debt securities losses, available for sale | (68 | ) | (51 | ) | (33.33 | )% | (193 | ) | (219 | ) | 11.87 | % | ||||||||||
| Net equity securities gains (losses) | 50 | 12 | 316.67 | % | 15 | (146 | ) | 110.27 | % | |||||||||||||
| Bank-owned life insurance | 171 | 163 | 4.91 | % | 1,063 | 664 | 60.09 | % | ||||||||||||||
| Gain on sale of loans | 314 | 226 | 38.94 | % | . | 1,046 | 1,131 | (7.52 | )% | |||||||||||||
| Insurance commissions | 113 | 105 | 7.62 | % | 529 | 491 | 7.74 | % | ||||||||||||||
| Brokerage commissions | 127 | 120 | 5.83 | % | 575 | 620 | (7.26 | )% | ||||||||||||||
| Loan broker income | 264 | 324 | (18.52 | )% | 992 | 1,674 | (40.74 | )% | ||||||||||||||
| Debit card income | 333 | 384 | (13.28 | )% | 1,328 | 1,464 | (9.29 | )% | ||||||||||||||
| Other | 384 | 258 | 48.84 | % | 930 | 931 | (0.11 | )% | ||||||||||||||
| TOTAL NON-INTEREST INCOME | 2,221 | 2,081 | 6.73 | % | 8,375 | 8,713 | (3.88 | )% | ||||||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||||||||
| Salaries and employee benefits | 6,284 | 5,846 | 7.49 | % | 25,062 | 24,267 | 3.28 | % | ||||||||||||||
| Occupancy | 746 | 700 | 6.57 | % | 3,168 | 3,080 | 2.86 | % | ||||||||||||||
| Furniture and equipment | 889 | 834 | 6.59 | % | 3,392 | 3,288 | 3.16 | % | ||||||||||||||
| Software amortization | 250 | 180 | 38.89 | % | 843 | 840 | 0.36 | % | ||||||||||||||
| Pennsylvania shares tax | 275 | 333 | (17.42 | )% | 1,082 | 1,452 | (25.48 | )% | ||||||||||||||
| Professional fees | 640 | 688 | (6.98 | )% | 2,953 | 2,434 | 21.32 | % | ||||||||||||||
| Federal Deposit Insurance Corporation deposit insurance | 456 | 248 | 83.87 | % | 1,578 | 938 | 68.23 | % | ||||||||||||||
| Marketing | 90 | 255 | (64.71 | )% | 684 | 690 | (0.87 | )% | ||||||||||||||
| Intangible amortization | 25 | 35 | (28.57 | )% | 117 | 154 | (24.03 | )% | ||||||||||||||
| Goodwill impairment | - | 653 | n/a | - | 653 | n/a | ||||||||||||||||
| Other | 1,342 | 1,479 | (9.26 | )% | 5,617 | 5,202 | 7.98 | % | ||||||||||||||
| TOTAL NON-INTEREST EXPENSE | 10,997 | 11,251 | (2.26 | )% | 44,496 | 42,998 | 3.48 | % | ||||||||||||||
| INCOME BEFORE INCOME TAX PROVISION | 6,914 | 5,803 | 19.15 | % | 20,322 | 21,585 | (5.85 | )% | ||||||||||||||
| INCOME TAX PROVISION | 1,359 | 1,294 | 5.02 | % | 3,714 | 4,163 | (10.79 | )% | ||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' | $ | 5,555 | $ | 4,509 | 23.20 | % | $ | 16,608 | $ | 17,422 | (4.67 | )% | ||||||||||
| EARNINGS PER SHARE - BASIC | $ | 0.77 | $ | 0.64 | 20.31 | % | $ | 2.34 | $ | 2.47 | (5.26 | )% | ||||||||||
| EARNINGS PER SHARE - DILUTED | $ | 0.77 | $ | 0.64 | 20.31 | % | $ | 2.34 | $ | 2.47 | (5.26 | )% | ||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 7,255,222 | 7,055,181 | 2.84 | % | 7,112,450 | 7,059,437 | 0.75 | % | ||||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 7,255,222 | 7,055,181 | 2.84 | % | 7,112,450 | 7,059,437 | 0.75 | % | ||||||||||||||
| PENNS WOODS BANCORP, INC. | ||||||||||||||||||
| AVERAGE BALANCES AND INTEREST RATES | ||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||||||
| (Dollars in Thousands) | Average Balance (1) | Interest | Average Rate | Average Balance (1) | Interest | Average Rate | ||||||||||||
| ASSETS: | ||||||||||||||||||
| Tax-exempt loans (3) | $ | 68,234 | $ | 478 | 2.78 | % | $ | 61,756 | $ | 408 | 2.62 | % | ||||||
| All other loans | 1,760,509 | 23,342 | 5.26 | % | 1,546,338 | 16,651 | 4.27 | % | ||||||||||
| Total loans (2) | 1,828,743 | 23,820 | 5.17 | % | 1,608,094 | 17,059 | 4.21 | % | ||||||||||
| Federal funds sold | - | - | - | % | - | - | - | % | ||||||||||
| Taxable securities | 193,744 | 1,932 | 4.04 | % | 167,405 | 1,329 | 3.22 | % | ||||||||||
| Tax-exempt securities (3) | 18,041 | 135 | 3.03 | % | 41,167 | 290 | 2.86 | % | ||||||||||
| Total securities | 211,785 | 2,067 | 3.96 | % | 208,572 | 1,619 | 3.15 | % | ||||||||||
| Interest-bearing balances in other financial institutions | 11,795 | 158 | 5.31 | % | 5,797 | 74 | 5.06 | % | ||||||||||
| Total interest-earning assets | 2,052,323 | 26,045 | 5.04 | % | 1,822,463 | 18,752 | 4.09 | % | ||||||||||
| Other assets | 130,421 | 128,084 | ||||||||||||||||
| TOTAL ASSETS | $ | 2,182,744 | $ | 1,950,547 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||||||||||||
| Savings | $ | 222,740 | 229 | 0.41 | % | $ | 249,793 | 66 | 0.10 | % | ||||||||
| Super Now deposits | 227,113 | 1,129 | 1.97 | % | 385,060 | 623 | 0.64 | % | ||||||||||
| Money market deposits | 293,542 | 2,217 | 3.00 | % | 268,519 | 509 | 0.75 | % | ||||||||||
| Time deposits | 377,516 | 3,870 | 4.07 | % | 144,491 | 301 | 0.83 | % | ||||||||||
| Total interest-bearing deposits | 1,120,911 | 7,445 | 2.64 | % | 1,047,863 | 1,499 | 0.57 | % | ||||||||||
| Short-term borrowings | 163,088 | 2,317 | 5.63 | % | 97,585 | 978 | 3.98 | % | ||||||||||
| Long-term borrowings | 235,998 | 2,207 | 3.71 | % | 102,814 | 580 | 2.24 | % | ||||||||||
| Total borrowings | 399,086 | 4,524 | 4.50 | % | 200,399 | 1,558 | 3.09 | % | ||||||||||
| Total interest-bearing liabilities | 1,519,997 | 11,969 | 3.12 | % | 1,248,262 | 3,057 | 0.97 | % | ||||||||||
| Demand deposits | 457,546 | 517,977 | ||||||||||||||||
| Other liabilities | 28,786 | 19,151 | ||||||||||||||||
| Shareholders' equity | 176,415 | 165,157 | ||||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,182,744 | $ | 1,950,547 | ||||||||||||||
| Interest rate spread (3) | 1.92 | % | 3.12 | % | ||||||||||||||
| Net interest income/margin (3) | $ | 14,076 | 2.73 | % | $ | 15,695 | 3.42 | % | ||||||||||
- Information on this table has been calculated using average daily balance sheets to obtain average balances.
- Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
- Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income
from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%
| Three Months Ended December 31, | |||||
| 2023 | 2022 | ||||
| Total interest income | $ | 25,917 | $ | 18,605 | |
| Total interest expense | 11,969 | 3,057 | |||
| Net interest income (GAAP) | 13,948 | 15,548 | |||
| Tax equivalent adjustment | 128 | 147 | |||
| Net interest income (fully taxable equivalent) (non-GAAP) | $ | 14,076 | $ | 15,695 | |
| PENNS WOODS BANCORP, INC. | ||||||||||||||||||
| AVERAGE BALANCES AND INTEREST RATES | ||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||
| Twelve Months Ended | ||||||||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||||||
| (Dollars in Thousands) | Average Balance (1) | Interest | Average Rate | Average Balance (1) | Interest | Average Rate | ||||||||||||
| ASSETS: | ||||||||||||||||||
| Tax-exempt loans (3) | $ | 66,863 | $ | 1,849 | 2.77 | % | $ | 55,364 | $ | 1,441 | 2.60 | % | ||||||
| All other loans | 1,691,742 | 81,830 | 4.84 | % | 1,439,550 | 57,544 | 4.00 | % | ||||||||||
| Total loans (2) | 1,758,605 | 83,679 | 4.76 | % | 1,494,914 | 58,985 | 3.95 | % | ||||||||||
| Federal funds sold | - | - | - | % | 32,863 | 465 | 1.41 | % | ||||||||||
| Taxable securities | 189,804 | 7,263 | 3.83 | % | 156,584 | 4,455 | 2.88 | % | ||||||||||
| Tax-exempt securities (3) | 23,872 | 654 | 2.74 | % | 44,301 | 1,042 | 2.38 | % | ||||||||||
| Total securities | 213,676 | 7,917 | 3.71 | % | 200,885 | 5,497 | 2.77 | % | ||||||||||
| Interest-bearing balances in other financial institutions | 10,916 | 524 | 4.80 | % | 74,401 | 503 | 0.68 | % | ||||||||||
| Total interest-earning assets | 1,983,197 | 92,120 | 4.65 | % | 1,803,063 | 65,450 | 3.63 | % | ||||||||||
| Other assets | 131,704 | 128,213 | ||||||||||||||||
| TOTAL ASSETS | $ | 2,114,901 | $ | 1,931,276 | ||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||||||||||||
| Savings | $ | 231,000 | 685 | 0.30 | % | $ | 247,003 | 138 | 0.06 | % | ||||||||
| Super Now deposits | 276,868 | 4,155 | 1.50 | % | 387,370 | 1,344 | 0.35 | % | ||||||||||
| Money market deposits | 292,755 | 7,024 | 2.40 | % | 289,820 | 1,105 | 0.38 | % | ||||||||||
| Time deposits | 293,252 | 10,267 | 3.50 | % | 161,982 | 1,103 | 0.68 | % | ||||||||||
| Total interest-bearing deposits | 1,093,875 | 22,131 | 2.02 | % | 1,086,175 | 3,690 | 0.34 | % | ||||||||||
| Short-term borrowings | 157,140 | 8,401 | 5.36 | % | 29,315 | 1,007 | 3.44 | % | ||||||||||
| Long-term borrowings | 186,094 | 6,099 | 3.28 | % | 110,027 | 2,451 | 2.23 | % | ||||||||||
| Total borrowings | 343,234 | 14,500 | 4.23 | % | 139,342 | 3,458 | 2.48 | % | ||||||||||
| Total interest-bearing liabilities | 1,437,109 | 36,631 | 2.55 | % | 1,225,517 | 7,148 | 0.58 | % | ||||||||||
| Demand deposits | 477,828 | 519,189 | ||||||||||||||||
| Other liabilities | 31,243 | 24,182 | ||||||||||||||||
| Shareholders' equity | 168,721 | 162,388 | ||||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,114,901 | $ | 1,931,276 | ||||||||||||||
| Interest rate spread (3) | 2.10 | % | 3.05 | % | ||||||||||||||
| Net interest income/margin (3) | $ | 55,489 | 2.80 | % | $ | 58,302 | 3.24 | % | ||||||||||
- Information on this table has been calculated using average daily balance sheets to obtain average balances.
- Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
- Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income
from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%
| Twelve Months Ended December 31, | |||||
| 2023 | 2022 | ||||
| Total interest income | $ | 91,595 | $ | 64,928 | |
| Total interest expense | 36,631 | 7,148 | |||
| Net interest income | 54,964 | 57,780 | |||
| Tax equivalent adjustment | 525 | 522 | |||
| Net interest income (fully taxable equivalent) (non-GAAP) | $ | 55,489 | $ | 58,302 | |
| (Dollars in Thousands, Except Per Share Data, Unaudited) | Quarter Ended | |||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| Operating Data | ||||||||||||||||||||
| Net income | $ | 5,555 | $ | 2,224 | $ | 4,171 | $ | 4,658 | $ | 4,509 | ||||||||||
| Net interest income | 13,948 | 13,332 | 13,386 | 14,298 | 15,548 | |||||||||||||||
| (Recovery) provision for credit losses | (1,742 | ) | 1,372 | (1,180 | ) | 71 | 575 | |||||||||||||
| Net security losses | (18 | ) | (81 | ) | (39 | ) | (40 | ) | (39 | ) | ||||||||||
| Non-interest income, excluding net security losses | 2,239 | 1,956 | 2,061 | 2,297 | 2,120 | |||||||||||||||
| Non-interest expense | 10,997 | 11,172 | 11,429 | 10,898 | 11,251 | |||||||||||||||
| Performance Statistics | ||||||||||||||||||||
| Net interest margin | 2.73 | % | 2.65 | % | 2.77 | % | 3.10 | % | 3.42 | % | ||||||||||
| Annualized return on average assets | 1.02 | % | 0.41 | % | 0.80 | % | 0.92 | % | 0.92 | % | ||||||||||
| Annualized return on average equity | 12.60 | % | 5.06 | % | 9.53 | % | 11.12 | % | 10.92 | % | ||||||||||
| Annualized net loan (recoveries) charge-offs to average loans | (0.05 | )% | 0.01 | % | (0.11 | )% | 0.03 | % | 0.04 | % | ||||||||||
| Net (recoveries) charge-offs | (209 | ) | 33 | (472 | ) | 123 | 149 | |||||||||||||
| Efficiency ratio | 67.78 | % | 72.76 | % | 73.78 | % | 65.46 | % | 59.79 | % | ||||||||||
| Per Share Data | ||||||||||||||||||||
| Basic earnings per share | $ | 0.77 | $ | 0.31 | $ | 0.59 | $ | 0.66 | $ | 0.64 | ||||||||||
| Diluted earnings per share | 0.77 | 0.31 | 0.59 | 0.64 | 0.64 | |||||||||||||||
| Dividend declared per share | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | |||||||||||||||
| Book value | 25.51 | 24.55 | 24.70 | 24.64 | 23.76 | |||||||||||||||
| Common stock price: | ||||||||||||||||||||
| High | 23.64 | 27.17 | 27.34 | 27.77 | 26.89 | |||||||||||||||
| Low | 20.05 | 20.70 | 21.95 | 21.90 | 23.15 | |||||||||||||||
| Close | 22.51 | 21.08 | 25.03 | 23.10 | 26.62 | |||||||||||||||
| Weighted average common shares: | ||||||||||||||||||||
| Basic | 7,255 | 7,072 | 7,062 | 7,058 | 7,055 | |||||||||||||||
| Fully Diluted | 7,255 | 7,229 | 7,062 | 7,334 | 7,055 | |||||||||||||||
| End-of-period common shares: | ||||||||||||||||||||
| Issued | 8,019 | 7,620 | 7,574 | 7,570 | 7,567 | |||||||||||||||
| Treasury | (510 | ) | (510 | ) | (510 | ) | (510 | ) | (510 | ) | ||||||||||
| (Dollars in Thousands) | Quarter Ended | |||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| Financial Condition Data: | ||||||||||||||||||||
| General | ||||||||||||||||||||
| Total assets | $ | 2,204,809 | $ | 2,176,468 | $ | 2,135,319 | $ | 2,065,143 | $ | 2,000,080 | ||||||||||
| Loans, net | 1,828,318 | 1,805,571 | 1,757,811 | 1,688,289 | 1,624,094 | |||||||||||||||
| Goodwill | 16,450 | 16,450 | 16,450 | 16,450 | 16,450 | |||||||||||||||
| Intangibles | 210 | 235 | 260 | 292 | 327 | |||||||||||||||
| Total deposits | 1,589,493 | 1,567,267 | 1,553,757 | 1,638,835 | 1,556,460 | |||||||||||||||
| Noninterest-bearing | 471,173 | 471,507 | 475,937 | 502,352 | 519,063 | |||||||||||||||
| Savings | 219,287 | 226,897 | 229,108 | 239,526 | 247,952 | |||||||||||||||
| NOW | 214,888 | 220,730 | 238,353 | 363,548 | 372,574 | |||||||||||||||
| Money Market | 299,353 | 291,889 | 296,957 | 300,273 | 270,589 | |||||||||||||||
| Time Deposits | 260,067 | 249,550 | 226,224 | 191,203 | 137,949 | |||||||||||||||
| Brokered Deposits | 124,725 | 106,694 | 87,178 | 41,933 | 8,333 | |||||||||||||||
| Total interest-bearing deposits | 1,118,320 | 1,095,760 | 1,077,820 | 1,136,483 | 1,037,397 | |||||||||||||||
| Core deposits* | 1,204,701 | 1,211,023 | 1,240,355 | 1,405,699 | 1,410,178 | |||||||||||||||
| Shareholders' equity | 191,556 | 174,540 | 174,402 | 173,970 | 167,665 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 3,148 | $ | 3,683 | $ | 4,276 | $ | 4,766 | $ | 4,890 | ||||||||||
| Non-performing loans to total assets | 0.14 | % | 0.17 | % | 0.20 | % | 0.23 | % | 0.24 | % | ||||||||||
| Allowance for loan losses | 11,446 | 12,890 | 11,592 | 11,734 | 15,637 | |||||||||||||||
| Allowance for loan losses to total loans | 0.62 | % | 0.71 | % | 0.66 | % | 0.69 | % | 0.95 | % | ||||||||||
| Allowance for loan losses to non-performing loans | 363.60 | % | 349.99 | % | 271.09 | % | 246.20 | % | 319.78 | % | ||||||||||
| Non-performing loans to total loans | 0.17 | % | 0.20 | % | 0.24 | % | 0.28 | % | 0.30 | % | ||||||||||
| Capitalization | ||||||||||||||||||||
| Shareholders' equity to total assets | 8.69 | % | 8.02 | % | 8.17 | % | 8.42 | % | 8.40 | % | ||||||||||
* Core deposits are defined as total deposits less time deposits and brokered deposits.
| Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| GAAP net income | $ | 5,555 | $ | 4,509 | $ | 16,608 | $ | 17,422 | ||||||||
| Net securities losses, net of tax | 14 | 31 | 141 | 288 | ||||||||||||
| Goodwill impairment | - | 516 | - | 516 | ||||||||||||
| Non-GAAP core earnings | $ | 5,569 | $ | 5,056 | $ | 16,749 | $ | 18,226 | ||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Return on average assets (ROA) | 1.02 | % | 0.92 | % | 0.79 | % | 0.90 | % | ||||||||
| Net securities losses, net of tax | - | % | 0.01 | % | - | % | 0.01 | % | ||||||||
| Goodwill impairment | - | % | 0.11 | % | - | % | 0.03 | % | ||||||||
| Non-GAAP core ROA | 1.02 | % | 1.04 | % | 0.79 | % | 0.94 | % | ||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Return on average equity (ROE) | 12.60 | % | 10.92 | % | 9.84 | % | 10.73 | % | ||||||||
| Net securities losses, net of tax | 0.03 | % | 0.08 | % | 0.09 | % | 0.17 | % | ||||||||
| Goodwill impairment | - | % | 1.25 | % | - | % | 0.32 | % | ||||||||
| Non-GAAP core ROE | 12.63 | % | 12.25 | % | 9.93 | % | 11.22 | % | ||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Basic earnings per share (EPS) | $ | 0.77 | $ | 0.64 | $ | 2.34 | $ | 2.47 | ||||||||
| Net securities losses, net of tax | - | - | 0.02 | 0.04 | ||||||||||||
| Goodwill impairment | - | 0.07 | - | 0.07 | ||||||||||||
| Non-GAAP basic core EPS | $ | 0.77 | $ | 0.71 | $ | 2.36 | $ | 2.58 | ||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Diluted EPS | $ | 0.77 | $ | 0.64 | $ | 2.34 | $ | 2.47 | ||||||||
| Net securities losses, net of tax | - | - | 0.02 | 0.04 | ||||||||||||
| Goodwill impairment | - | 0.07 | - | 0.07 | ||||||||||||
| Non-GAAP diluted core EPS | $ | 0.77 | $ | 0.71 | $ | 2.36 | $ | 2.58 | ||||||||
