Penns Woods Bancorp, Inc. Reports Fourth Quarter 2020 Earnings

Rhea-AI Summary

Penns Woods Bancorp, Inc. (NASDAQ: PWOD) reported a net income of $15.2 million for 2020, with earnings per share at $2.16. This was a slight decrease from $15.7 million in 2019. The quarterly net income for Q4 2020 stood at $3.9 million, compared to $2.8 million in Q4 2019. Total assets increased by $169.3 million to $1.8 billion, while deposits rose by $170.4 million to $1.5 billion. However, the net interest margin declined to 2.94% in 2020 from 3.31% in 2019, primarily due to lower loan yields.

Positive

• Net income for 2020 was $15.2 million, down slightly from $15.7 million in 2019.
• Deposits increased by $170.4 million to $1.5 billion.
• Core earnings increased to $3.6 million in Q4 2020 compared to $2.4 million in Q4 2019.

Negative

• Net interest margin decreased to 2.94% from 3.31% in 2019.
• Basic earnings per share decreased from $2.23 in 2019 to $2.16 in 2020.
• Total net loans decreased by $13.1 million to $1.3 billion by the end of 2020.

WILLIAMSPORT, Pa., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD) -

Penns Woods Bancorp, Inc. achieved net income of $15.2 million for the twelve months ended December 31, 2020, resulting in basic and diluted earnings per share of $2.16.

Highlights

• Net income, as reported under GAAP, for the three and twelve months ended December 31, 2020 was $3.9 million and $15.2 million, respectively compared to $2.8 million and $15.7 million for the same periods of 2019. Results for the three and twelve months ended December 31, 2020 compared to 2019 were impacted by a decrease in after-tax securities gains of $91,000 (from a gain of $386,000 to a gain of $295,000) for the three month period and an increase in securities gains of $679,000 (from a gain of $591,000 to a gain of $1,270,000) for the twelve month period. Impacting the three and twelve months ended December 31, 2019 was a write down of assets held for sale and a loss on sale of premises and equipment that totaled $949,000.
  
  
• Gain on sale of loans increased $719,000 and $2.4 million, respectfully, for the three and twelve months ended December 31, 2020, to $1.2 million and $4.1 million, respectively, compared to $508,000 and $1.8 million for the 2019 periods. The increase is the result of a significant increase in the number of consumers who are refinancing their mortgage due to the current low interest rate environment.
  
  
• The provision for loan losses decreased $1.1 million and $110,000, respectfully, for the three and twelve months ended December 31, 2020, to $585,000 and $2.6 million, respectively, compared to $1.7 million and $2.7 million for the 2019 periods. The higher provision during the 2019 periods was primarily due to a commercial loan relationship that had become non-performing during the fourth quarter of 2019. The provision during 2020 remained elevated due to the economic uncertainty caused by the COVID-19 pandemic.
  
  
• Basic and diluted earnings per share for the three and twelve months ended December 31, 2020 were $0.55 and $2.16, respectively. Basic earnings per share for the three and twelve months ended December 31, 2019 were $0.40 and $2.23, respectively, with diluted earnings per share of $0.39 and $2.20, respectively.
  
  
• Return on average assets was 0.85% for the three months ended December 31, 2020, compared to 0.68% for the corresponding period of 2019. Return on average assets was 0.85% for the twelve months ended December 31, 2020, compared to 0.94% for the corresponding period of 2019.
  
  
• Return on average equity was 9.55% for the three months ended December 31, 2020, compared to 7.22% for the corresponding period of 2019. Return on average equity was 9.66% for the twelve months ended December 31, 2020, compared to 10.54% for the corresponding period of 2019.
  

COVID-19 Activity

• Approximately one third of employees working remotely.
  
  
• As of December 31, 2020, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $8.7 million in loan principal remaining in deferral.
  
  
• All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring.
  
  
• Participated in the Paycheck Protection Program ("PPP") by primarily utilizing third parties to service and place the loans.
  
  
• Significantly reduced deposit rates during the latter half of March 2020 continuing through December 2020.
  
  
• Total paycheck protection program loans originated to be held on balance sheet at December 31, 2020 total $11.2 million.
  

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 $3.6 million for the three months ended December 31, 2020 compared to $2.4 million for the same period of 2019. Core earnings were $13.9 million for the twelve months ended December 31, 2020, compared to $15.1 million for the same period of 2019. Core earnings per share for the three months ended December 31, 2020 were $0.51 basic and diluted, compared to $0.35 basic and $0.33 diluted core earnings per share for the same period of 2019. Core earnings per share for the twelve months ended December 31, 2020 were $1.98 basic and diluted, compared to $2.14 basic and $2.12 diluted for the same period of 2019. Core return on average assets and core return on average equity were 0.79% and 8.83% for the three months ended December 31, 2020, compared to 0.59% and 6.23% for the corresponding period of 2019. Core return on average assets and core return on average equity were 0.78% and 8.85% for the twelve months ended December 31, 2020 compared to 0.90% and 10.14% for the corresponding period of 2019. 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, 2020 was 2.81% and 2.94%, compared to 3.22% and 3.31% for the corresponding periods of 2019. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 28 and 16 basis points ("bps"), while the investment portfolio yield declined 80 and 65 bps, respectively, for the three and twelve month periods during the current low interest rate environment. Further compressing the net interest margin was the significant increase of interest-bearing deposits. These deposits carry a current yield of a few basis points as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing liabilities decreased over the three and twelve months ended December 31, 2020 and these rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $169.3 million to $1.8 billion at December 31, 2020 compared to December 31, 2019.  Cash and cash equivalents increased significantly due to deposit growth resulting from the various economic recovery programs instituted at the state and federal levels that impacted both commercial and retail customers, coupled with customers becoming more risk adverse and seeking safety in a bank deposit. Net loans decreased $13.1 million to $1.3 billion at December 31, 2020 compared to December 31, 2019, as the COVID-19 business and travel restrictions curtailed various lending activities such as indirect auto, home equity, and commercial. Lending activity began to rebound as business and travel restrictions were lessened during the second half of 2020. The investment portfolio increased $15.5 million from December 31, 2019 to December 31, 2020 as a portion of the excess cash liquidity was invested into short-term municipal bonds.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.77% at December 31, 2020 from 0.92% at December 31, 2019 as non-performing loans have decreased to $10.3 million at December 31, 2020 from $12.4 million at December 31, 2019 primarily due to a commercial loan relationship that was paid-off during the fourth quarter of 2020. 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 a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $211,000 and $716,000 for the three and twelve months ended December 31, 2020 impacted the allowance for loan losses, which was 1.03% of total loans at December 31, 2020 compared to 0.88% at December 31, 2019.

Deposits

Deposits increased $170.4 million to $1.5 billion at December 31, 2020 compared to December 31, 2019. Noninterest-bearing deposits increased $114.6 million to $449.4 million at December 31, 2020 compared to December 31, 2019.  Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk adverse and seeking safety in a bank deposit. Emphasis during 2020 has been on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic.

Shareholders’ Equity

Shareholders’ equity increased $9.2 million to $164.1 million at December 31, 2020 compared to December 31, 2019. The change in accumulated other comprehensive loss from $2.8 million at December 31, 2019 to $882,000 at December 31, 2020 is a result of an increase in unrealized gains on available for sale securities (from an unrealized gain of $2.5 million at December 31, 2019 to an unrealized gain of $4.7 million at December 31, 2020). The amount of accumulated other comprehensive loss at December 31, 2020 was also impacted by the change in net excess of the projected benefit obligation over the fair value of the plan assets of the defined benefit pension plan, resulting in an increase in the net loss of $364,000. The current level of shareholders’ equity equates to a book value per share of $23.27 at December 31, 2020 compared to $22.01 at December 31, 2019, and an equity to asset ratio of 8.95% at December 31, 2020 compared to 9.31% at December 31, 2019. Dividends declared for the twelve months ended December 31, 2020 and 2019 were $1.28 per share and $1.26 per share, respectively.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates eighteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, and Union Counties, and Luzerne Bank, which operates nine branch offices providing financial services in Luzerne County.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group. Insurance products are offered through United Insurance Solutions, LLC, a joint venture that is a subsidiary of the holding company.

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, 2019.

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

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)

		December 31,
(In Thousands, Except Share Data)		2020					2019					% Change
ASSETS:
Noninterest-bearing balances		$	31,821				$	24,725				28.70		%
Interest-bearing balances in other financial institutions		181,537					23,864					660.71		%
Total cash and cash equivalents		213,358					48,589					339.11		%
Investment debt securities, available for sale, at fair value		162,261					148,619					9.18		%
Investment equity securities, at fair value		1,288					1,261					2.14		%
Investment securities, trading		40					51					(21.57	)	%
Restricted investment in bank stock, at fair value		15,377					13,528					13.67		%
Loans held for sale		5,239					4,232					23.79		%
Loans		1,344,327					1,355,544					(0.83	)	%
Allowance for loan losses		(13,803		)			(11,894		)			16.05		%
Loans, net		1,330,524					1,343,650					(0.98	)	%
Premises and equipment, net		32,702					32,929					(0.69	)	%
Accrued interest receivable		8,394					5,246					60.01		%
Bank-owned life insurance		33,638					29,253					14.99		%
Goodwill		17,104					17,104					—		%
Intangibles		671					898					(25.28	)	%
Operating lease right of use asset		3,136					4,154					(24.51	)	%
Deferred tax asset		2,526					3,338					(24.33	)	%
Other assets		8,385					12,471					(32.76	)	%
TOTAL ASSETS		$	1,834,643				$	1,665,323				10.17		%
LIABILITIES:
Interest-bearing deposits		$	1,045,086				$	989,259				5.64		%
Noninterest-bearing deposits		449,357					334,746					34.24		%
Total deposits		1,494,443					1,324,005					12.87		%
Short-term borrowings		5,244					4,920					6.59		%
Long-term borrowings		153,475					161,920					(5.22	)	%
Accrued interest payable		1,112					1,671					(33.45	)	%
Operating lease liability		3,175					4,170					(23.86	)	%
Other liabilities		13,048					13,655					(4.45	)	%
TOTAL LIABILITIES		1,670,497					1,510,341					10.60		%
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; 7,532,576 and 7,520,740 shares issued; 7,052,351 and 7,040,515 shares outstanding		41,847					41,782					0.16		%
Additional paid-in capital		52,523					51,487					2.01		%
Retained earnings		82,769					76,583					8.08		%
Accumulated other comprehensive (loss) gain:
Net unrealized gain on available for sale securities		4,714					2,455					92.02		%
Defined benefit plan		(5,596		)			(5,232		)			(6.96	)	%
Treasury stock at cost, 480,225		(12,115		)			(12,115		)			—		%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY		164,142					154,960					5.93		%
Non-controlling interest		4					22					(81.82	)	%
TOTAL SHAREHOLDERS' EQUITY		164,146					154,982					5.91		%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,834,643				$	1,665,323				10.17		%

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)

		Three Months Ended December 31,														Twelve Months Ended December 31,
(In Thousands, Except Per Share Data)		2020					2019					% Change				2020					2019				% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees		$	13,814				$	14,789				(6.59	)	%		$	57,217				$	60,384			(5.24	)	%
Investment securities:
Taxable		820					1,098					(25.32	)	%		3,778					3,997				(5.48	)	%
Tax-exempt		166					140					18.57		%		650					660				(1.52	)	%
Dividend and other interest income		246					388					(36.60	)	%		993					1,733				(42.70	)	%
TOTAL INTEREST AND DIVIDEND INCOME		15,046					16,415					(8.34	)	%		62,638					66,774				(6.19	)	%
INTEREST EXPENSE:
Deposits		2,159					3,107					(30.51	)	%		10,565					11,443				(7.67	)	%
Short-term borrowings		6					3					100.00		%		43					793				(94.58	)	%
Long-term borrowings		914					984					(7.11	)	%		3,807					3,723				2.26		%
TOTAL INTEREST EXPENSE		3,079					4,094					(24.79	)	%		14,415					15,959				(9.67	)	%
NET INTEREST INCOME		11,967					12,321					(2.87	)	%		48,223					50,815				(5.10	)	%
PROVISION FOR LOAN LOSSES		585					1,700					(65.59	)	%		2,625					2,735				(4.02	)	%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		11,382					10,621					7.17		%		45,598					48,080				(5.16	)	%
NON-INTEREST INCOME:
Service charges		441					635					(30.55	)	%		1,690					2,411				(29.90	)	%
Debt securities gains, available for sale		372					440					(15.45	)	%		1,592					640				148.75		%
Equity securities (losses) gains		(3		)			74					(104.05	)	%		27					89				(69.66	)	%
Securities gains (losses), trading		5					(25		)			120.00		%		(11		)			19				(157.89	)	%
Bank-owned life insurance		161					140					15.00		%		653					574				13.76		%
Gain on sale of loans		1,227					508					141.54		%		4,148					1,754				136.49		%
Insurance commissions		96					87					10.34		%		416					433				(3.93	)	%
Brokerage commissions		191					326					(41.41	)	%		970					1,358				(28.57	)	%
Debit card income		344					346					(0.58	)	%		1,280					1,378				(7.11	)	%
Other		241					376					(35.90	)	%		1,403					1,796				(21.88	)	%
TOTAL NON-INTEREST INCOME		3,075					2,907					5.78		%		12,168					10,452				16.42		%
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,270					5,317					(0.88	)	%		21,632					21,829				(0.90	)	%
Occupancy		723					627					15.31		%		2,650					2,712				(2.29	)	%
Furniture and equipment		886					827					7.13		%		3,411					3,248				5.02		%
Software amortization		235					242					(2.89	)	%		978					871				12.28		%
Pennsylvania shares tax		341					285					19.65		%		1,289					1,148				12.28		%
Professional fees		474					640					(25.94	)	%		2,362					2,474				(4.53	)	%
Federal Deposit Insurance Corporation deposit insurance		289					97					197.94		%		939					578				62.46		%
Write down of assets held for sale		—					475					(100.00	)	%		—					475				(100.00	)	%
Loss on sale of premises and equipment		—					474					(100.00	)	%		—					474				(100.00	)	%
Marketing		91					192					(52.60	)	%		261					425				(38.59	)	%
Intangible amortization		53					62					(14.52	)	%		227					264				(14.02	)	%
Other		1,278					1,056					21.02		%		5,319					5,210				2.09		%
TOTAL NON-INTEREST EXPENSE		9,640					10,294					(6.35	)	%		39,068					39,708				(1.61	)	%
INCOME BEFORE INCOME TAX PROVISION		4,817					3,234					48.95		%		18,698					18,824				(0.67	)	%
INCOME TAX PROVISION		911					397					129.47		%		3,474					3,138				10.71		%
NET INCOME		$	3,906				$	2,837				37.68		%		$	15,224				$	15,686			(2.95	)	%
Earnings attributable to noncontrolling interest		5					4					25.00		%		18					14				28.57		%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'		$	3,901				$	2,833				37.70		%		$	15,206				$	15,672			(2.97	)	%
EARNINGS PER SHARE - BASIC		$	0.55				$	0.40				37.50		%		$	2.16				$	2.23			(3.14	)	%
EARNINGS PER SHARE - DILUTED		$	0.55				$	0.39				41.03		%		$	2.16				$	2.20			(1.82	)	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,050,389					7,039,968					0.15		%		7,044,542					7,038,714				0.08		%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,050,389					7,338,468					(3.93	)	%		7,044,542					7,113,339				(0.97	)	%
DIVIDENDS DECLARED PER SHARE		$	0.32				$	0.32				—		%		$	1.28				$	1.26			1.59		%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

		Three Months Ended
		December 31, 2020											December 31, 2019
(Dollars in Thousands)		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
ASSETS:
Tax-exempt loans		$	42,882			$	303			2.81	%		$	55,727			$	446			3.21	%
All other loans		1,304,521				13,575				4.14	%		1,306,203				14,437				4.43	%
Total loans		1,347,403				13,878				4.10	%		1,361,930				14,883				4.38	%
Taxable securities		140,074				1,048				3.04	%		145,273				1,372				3.83	%
Tax-exempt securities		33,187				210				2.57	%		22,406				177				3.20	%
Total securities		173,261				1,258				2.95	%		167,679				1,549				3.75	%
Interest-bearing deposits		183,428				18				0.04	%		30,393				207				1.50	%
Total interest-earning assets		1,704,092				15,154				3.54	%		1,560,002				16,639				4.26	%
Other assets		123,352											108,235
TOTAL ASSETS		$	1,827,444										$	1,668,237
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	206,563			47				0.09	%		$	172,573			69				0.16	%
Super Now deposits		271,600				433				0.63	%		216,535				445				0.82	%
Money market deposits		277,980				304				0.44	%		229,486				535				0.94	%
Time deposits		285,281				1,375				1.92	%		375,838				2,058				2.20	%
Total interest-bearing deposits		1,041,424				2,159				0.82	%		994,432				3,107				1.25	%
Short-term borrowings		11,068				6				0.29	%		4,781				3				0.25	%
Long-term borrowings		153,506				914				2.50	%		162,241				984				2.30	%
Total borrowings		164,574				920				2.35	%		167,022				987				2.24	%
Total interest-bearing liabilities		1,205,998				3,079				1.03	%		1,161,454				4,094				1.39	%
Demand deposits		439,841											329,873
Other liabilities		18,218											19,693
Shareholders’ equity		163,387											157,217
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,827,444										$	1,668,237
Interest rate spread										2.51	%										2.87	%
Net interest income/margin						$	12,075			2.81	%						$	12,545			3.22	%

		Three Months Ended December 31,
		2020				2019
Total interest income		$	15,046			$	16,415
Total interest expense		3,079				4,094
Net interest income		11,967				12,321
Tax equivalent adjustment		108				224
Net interest income (fully taxable equivalent)		$	12,075			$	12,545

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

		Twelve Months Ended
		December 31, 2020											December 31, 2019
(Dollars in Thousands)		Average Balance				Interest				Average Rate			Average Balance				Interest				Average Rate
ASSETS:
Tax-exempt loans		$	45,650			$	1,441			3.16	%		$	66,435			$	2,038			3.07	%
All other loans		1,304,209				56,079				4.30	%		1,309,806				58,774				4.49	%
Total loans		1,349,859				57,520				4.26	%		1,376,241				60,812				4.42	%
Taxable securities		142,714				4,630				3.30	%		134,935				5,306				3.99	%
Tax-exempt securities		28,973				823				2.89	%		25,702				835				3.29	%
Total securities		171,687				5,453				3.23	%		160,637				6,141				3.88	%
Interest-bearing deposits		140,022				141				0.10	%		21,161				310				2.00	%
Total interest-earning assets		1,661,568				63,114				3.80	%		1,558,039				67,263				4.33	%
Other assets		118,536											111,839
TOTAL ASSETS		$	1,780,104										$	1,669,878
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	193,568			256				0.13	%		$	169,832			216				0.13	%
Super Now deposits		254,177				1,755				0.69	%		231,816				1,758				0.76	%
Money market deposits		245,633				1,529				0.62	%		239,317				2,184				0.91	%
Time deposits		338,895				7,025				2.07	%		345,635				7,285				2.11	%
Total interest-bearing deposits		1,032,273				10,565				1.02	%		986,600				11,443				1.16	%
Short-term borrowings		12,660				43				0.34	%		34,897				793				2.27	%
Long-term borrowings		162,636				3,807				2.34	%		155,841				3,723				2.25	%
Total borrowings		175,296				3,850				2.20	%		190,738				4,516				2.25	%
Total interest-bearing liabilities		1,207,569				14,415				1.19	%		1,177,338				15,959				1.34	%
Demand deposits		394,210											321,443
Other liabilities		20,858											22,379
Shareholders’ equity		157,467											148,718
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,780,104										$	1,669,878
Interest rate spread										2.61	%										2.99	%
Net interest income/margin						$	48,699			2.94	%						$	51,304			3.31	%

		Twelve Months Ended December 31,
		2020				2019
Total interest income		$	62,638			$	66,774
Total interest expense		14,415				15,959
Net interest income		48,223				50,815
Tax equivalent adjustment		476				489
Net interest income (fully taxable equivalent)		$	48,699			$	51,304

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		12/31/2020				9/30/2020				6/30/2020				3/31/2020				12/31/2019
Operating Data
Net income		$	3,901			$	4,472			$	3,760			$	3,073			$	2,833
Net interest income		11,967				11,845				12,250				12,161				12,321
Provision for loan losses		585				645				645				750				1,700
Net security gains		374				1,011				196				27				489
Non-interest income, excluding net security gains		2,701				3,024				2,423				2,409				2,418
Non-interest expense		9,640				9,707				9,611				10,110				10,294
Performance Statistics
Net interest margin		2.81		%		2.76		%		3.01		%		3.19		%		3.22		%
Annualized return on average assets		0.85		%		0.97		%		0.85		%		0.74		%		0.68		%
Annualized return on average equity		9.55		%		11.05		%		9.60		%		7.83		%		7.22		%
Annualized net loan charge-offs to average loans		0.06		%		0.06		%		0.05		%		0.04		%		1.19		%
Net charge-offs		211				193				168				144				4,055
Efficiency ratio		65.36		%		64.89		%		65.10		%		68.96		%		69.42		%
Per Share Data
Basic earnings per share		$	0.55			$	0.63			$	0.53			$	0.44			$	0.40
Diluted earnings per share		0.55				0.63				0.53				0.43				0.39
Dividend declared per share		0.32				0.32				0.32				0.32				0.32
Book value		23.27				23.05				22.66				22.23				22.01
Common stock price:
High		27.30				22.83				27.75				35.36				35.58
Low		19.61				19.61				20.01				19.05				29.68
Close		26.01				19.85				22.71				24.30				35.58
Weighted average common shares:
Basic		7,050				7,045				7,042				7,041				7,040
Fully Diluted		7,050				7,045				7,042				7,103				7,338
End-of-period common shares:
Issued		7,533				7,528				7,523				7,521				7,521
Treasury		480				480				480				480				480

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		12/31/2020				9/30/2020				6/30/2020				3/31/2020				12/31/2019
Financial Condition Data:
General
Total assets		$	1,834,643			$	1,840,779			$	1,838,364			$	1,688,508			$	1,665,323
Loans, net		1,330,524				1,335,711				1,336,370				1,336,900				1,343,650
Goodwill		17,104				17,104				17,104				17,104				17,104
Intangibles		671				724				777				836				898
Total deposits		1,494,443				1,491,810				1,474,305				1,326,734				1,324,005
Noninterest-bearing		449,357				434,248				418,324				332,759				334,746
Savings		209,924				202,781				195,964				183,929				176,732
NOW		287,775				268,463				268,348				229,919				218,605
Money Market		283,742				274,480				247,753				204,832				216,038
Time Deposits		263,645				311,838				343,915				375,295				377,884
Total interest-bearing deposits		1,045,086				1,057,562				1,055,980				993,975				989,259
Core deposits*		1,230,798				1,179,972				1,130,389				951,439				946,121
Shareholders’ equity		164,142				162,422				159,578				156,562				154,960
Asset Quality
Non-performing loans		$	10,334			$	10,553			$	11,097			$	11,300			$	12,421
Non-performing loans to total assets		0.56		%		0.57		%		0.60		%		0.67		%		0.75		%
Allowance for loan losses		13,803				13,429				12,977				12,500				11,894
Allowance for loan losses to total loans		1.03		%		1.00		%		0.96		%		0.93		%		0.88		%
Allowance for loan losses to non-performing loans		133.57		%		127.25		%		116.94		%		110.62		%		95.76		%
Non-performing loans to total loans		0.77		%		0.78		%		0.82		%		0.84		%		0.92		%
Capitalization
Shareholders’ equity to total assets		8.95		%		8.82		%		8.68		%		9.27		%		9.31		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

		Three Months Ended December 31,								Twelve Months Ended December 31,
(Dollars in Thousands, Except Per Share Data)		2020				2019				2020				2019
GAAP net income		$	3,901			$	2,833			$	15,206			$	15,672
Less: net securities gains, net of tax		295				386					1,270				591
Non-GAAP core earnings		$	3,606			$	2,447			$	13,936			$	15,081
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
Return on average assets (ROA)		0.85		%		0.68		%		0.85		%		0.94		%
Less: net securities gains, net of tax		0.06		%		0.09		%		0.07		%		0.04		%
Non-GAAP core ROA		0.79		%		0.59		%		0.78		%		0.90		%
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
Return on average equity (ROE)		9.55		%		7.22		%		9.66		%		10.54		%
Less: net securities gains, net of tax		0.72		%		0.99		%		0.81		%		0.40		%
Non-GAAP core ROE		8.83		%		6.23		%		8.85		%		10.14		%
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
Basic earnings per share (EPS)		$	0.55			$	0.40			$	2.16			$	2.23
Less: net securities gains, net of tax		0.04				0.05				0.18				0.09
Non-GAAP basic core EPS		$	0.51			$	0.35			$	1.98			$	2.14
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
Diluted EPS		$	0.55			$	0.39			$	2.16			$	2.20
Less: net securities gains, net of tax		0.04				0.06				0.18				0.08
Non-GAAP diluted core EPS		$	0.51			$	0.33			$	1.98			$	2.12

COVID-19 Loan Deferrals as of December 31, 2020

(In Thousands)		Amount
Commercial, financial, and agricultural		$	2,497
Real estate mortgage:
Residential		1,626
Commercial		4,172
Consumer automobile loans		384
Other consumer installment loans		36
Total loan deferrals		$	8,715

FAQ

What were the earnings per share for PWOD in 2020?

The earnings per share for Penns Woods Bancorp in 2020 were $2.16.

How did PWOD's net income in Q4 2020 compare to Q4 2019?

Net income for Q4 2020 was $3.9 million, an increase from $2.8 million in Q4 2019.

What is the current net interest margin for PWOD?

The net interest margin for Penns Woods Bancorp was 2.94% for the twelve months ended December 31, 2020.

How much did deposits increase for PWOD in 2020?

Deposits for Penns Woods Bancorp increased by $170.4 million to reach $1.5 billion by December 31, 2020.

What was the total asset value of PWOD at the end of 2020?

Total assets of Penns Woods Bancorp increased to $1.8 billion at the end of 2020.