Penns Woods Bancorp, Inc. Reports Fourth Quarter 2021 Earnings

Rhea-AI Summary

Penns Woods Bancorp reported a net income of $16.0 million for 2021, up from $15.2 million in 2020, resulting in earnings per share of $2.27. The increase was driven by a decrease in loan loss provisions, which fell by $2.0 million. Core earnings also rose to $15.5 million for the year, compared to $13.9 million in 2020. Total assets grew to $1.9 billion, with deposits climbing $126.9 million to $1.6 billion. However, securities gains decreased by $749,000 year-over-year. The bank maintained strong capital ratios, with a book value of $24.37 per share.

Positive

• Net income increased to $16.0 million for 2021 from $15.2 million in 2020.
• Earnings per share rose to $2.27 in 2021 compared to $2.16 in 2020.
• Core earnings for 2021 were $15.5 million, up from $13.9 million in 2020.
• Total assets increased by $106.2 million to $1.9 billion.
• Deposits grew by $126.9 million to $1.6 billion.

Negative

• Decrease in after-tax securities gains by $749,000 for the twelve months.
• Loan loss provisions were lower, suggesting potential future risks.

WILLIAMSPORT, Pa., Jan. 26, 2022 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $16.0 million for the twelve months ended December 31, 2021, resulting in basic and diluted earnings per share of $2.27.

Highlights

• Net income, as reported under GAAP, for the three and twelve months ended December 31, 2021 was $4.9 million and $16.0 million, respectively, compared to $3.9 million and $15.2 million for the same periods of 2020. Results for the three and twelve months ended December 31, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $11,000 (from a gain of $295,000 to a gain of $284,000) for the three month period and a decrease in after-tax securities gains of $749,000 (from a gain of $1.3 million to a gain of $521,000) for the twelve month period.
  
  
• The provision for loan losses decreased $885,000 and $2.0 million, respectively, for the three and twelve months ended December 31, 2021, to ($300,000) and $640,000 compared to $585,000 and $2.6 million for the 2020 periods. The provision for loan losses was elevated in 2020 due primarily to the uncertainty caused by the COVID-19 pandemic.
  
  
• Basic and diluted earnings per share for the three and twelve months ended December 31, 2021 were $0.69 and $2.27, respectively. Basic and diluted earnings per share for the three and twelve months ended December 31, 2020 were $0.55 and $2.16, respectively.
  
  
• Return on average assets was 1.02% for three months ended December 31, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.85% for the twelve months ended December 31, 2021, compared to 0.85% for the corresponding period of 2020.
  
  
• Return on average equity was 11.59% for the three months ended December 31, 2021, compared to 9.55% for the corresponding period of 2020. Return on average equity was 9.93% for the twelve months ended December 31, 2021, compared to 9.66% for the corresponding period of 2020.
  

COVID-19 Activity

• Approximately one third of employees working remotely.
  
  
• As of December 31, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $379,000 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 2021.
  
  
• Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $4.0 million remaining on the balance sheet at December 31, 2021.
  

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 $4.6 million for the three months ended December 31, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $15.5 million for the twelve months ended December 31, 2021, compared to $13.9 million for the same period of 2020. Core earnings per share for the three months ended December 31, 2021 were $0.65 basic and diluted, compared to $0.51 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the twelve months ended December 31, 2021 were $2.20 basic and diluted, compared to $1.98 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.96% and 10.92% for the three months ended December 31, 2021, compared to 0.79% and 8.83% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.82% and 9.61% for the twelve months ended December 31, 2021 compared to 0.78% and 8.85% for the corresponding period of 2020. 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, 2021 was 2.90% and 2.85%, compared to 2.81% and 2.94% for the corresponding period of 2020. The increase in the net interest margin for the three month period and decrease for the twelve month period was driven by a decrease in the yield of the loan portfolio of 19 and 28 basis points ("bps"), while the investment portfolio yield declined 38 and 54 bps, respectively, during the current low interest rate environment. Offsetting the decline in yield on the earning asset portfolio was a decline in rate paid on interest-bearing deposits of 44 and 51 bps for the three and twelve month periods as rates paid were decreased significantly during 2020 and 2021 due to the economic impact of COVID-19 prolonging the low interest rate environment.

Assets

Total assets increased $106.2 million to $1.9 billion at December 31, 2021 compared to December 31, 2020.  Cash and cash equivalents increased significantly as federal funds sold increased $50 million 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 averse and seeking safety in a bank deposit. Net loans increased $47.4 million to $1.4 billion at December 31, 2021 compared to December 31, 2020, as the COVID-19 business and travel restrictions and supply chain interruptions 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 and continued to rebound in 2021 in particular the fourth quarter. The investment portfolio increased $3.3 million from December 31, 2020 to December 31, 2021 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 0.45% at December 31, 2021 from 0.77% at December 31, 2020 as non-performing loans have decreased to $6.3 million at December 31, 2021 from $10.3 million at December 31, 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 $267,000 for the twelve months ended December 31, 2021 impacted the allowance for loan losses, which was 1.02% of total loans at December 31, 2021 compared to 1.03% at December 31, 2020.

Deposits

Deposits increased $126.9 million to $1.6 billion at December 31, 2021 compared to December 31, 2020. Noninterest-bearing deposits increased $45.0 million to $494.4 million at December 31, 2021 compared to December 31, 2020.  Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk averse and seeking safety in a bank deposit. Emphasis remains 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. The increased level of deposits has allowed for a decrease in long-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $8.1 million to $172.3 million at December 31, 2021 compared to December 31, 2020.  Accumulated other comprehensive loss of $1.1 million at December 31, 2021 increased from a loss of $882,000 at December 31, 2020 as a result of a decrease of $2.3 million in the net unrealized gain on available for sale securities and a change in the defined benefit plan of $2.1 million. The current level of shareholders’ equity equates to a book value per share of $24.37 at December 31, 2021 compared to $23.27 at December 31, 2020, and an equity to asset ratio of 8.88% at December 31, 2021 and 8.95% at December 31, 2020. Dividends declared for the twelve months ended December 31, 2021 and 2020 were $1.28 per share.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen 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, 2020.

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 Data)			2021				2020			% Change
ASSETS:
Noninterest-bearing balances		$	19,233			$	31,821			(39.56)%
Interest-bearing balances in other financial institutions			194,629				181,537			7.21%
Federal funds sold			50,000				—			n/a
Total cash and cash equivalents			263,862				213,358			23.67%
Investment debt securities, available for sale, at fair value			166,410				162,261			2.56%
Investment equity securities, at fair value			1,251				1,288			(2.87)%
Investment securities, trading			37				40			(7.50)%
Restricted investment in bank stock, at fair value			14,531				15,377			(5.50)%
Loans held for sale			3,725				5,239			(28.90)%
Loans			1,392,147				1,344,327			3.56%
Allowance for loan losses			(14,176	)			(13,803	)		2.70%
Loans, net			1,377,971				1,330,524			3.57%
Premises and equipment, net			34,025				32,702			4.05%
Accrued interest receivable			8,048				8,394			(4.12)%
Bank-owned life insurance			33,768				33,638			0.39%
Investment in limited partnerships			4,607				3,944			16.81%
Goodwill			17,104				17,104			—%
Intangibles			480				671			(28.46)%
Operating lease right of use asset			2,851				3,136			(9.09)%
Deferred tax asset			2,946				2,526			16.63%
Other assets			9,193				4,441			107.00%
TOTAL ASSETS		$	1,940,809			$	1,834,643			5.79%
LIABILITIES:
Interest-bearing deposits		$	1,126,955			$	1,045,086			7.83%
Noninterest-bearing deposits			494,360				449,357			10.01%
Total deposits			1,621,315				1,494,443			8.49%
Short-term borrowings			5,747				5,244			9.59%
Long-term borrowings			125,963				153,475			(17.93)%
Accrued interest payable			651				1,112			(41.46)%
Operating lease liability			2,898				3,175			(8.72)%
Other liabilities			11,961				13,048			(8.33)%
TOTAL LIABILITIES			1,768,535				1,670,497			5.87%
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; 7,550,272 and 7,532,576 shares issued; 7,070,047 and 7,052,351 shares outstanding			41,945				41,847			0.23%
Additional paid-in capital			53,795				52,523			2.42%
Retained earnings			89,761				82,769			8.45%
Accumulated other comprehensive gain (loss):
Net unrealized gain on available for sale securities			2,373				4,714			(49.66)%
Defined benefit plan			(3,485	)			(5,596	)		(37.72)%
Treasury stock at cost, 480,225			(12,115	)			(12,115	)		—%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY			172,274				164,142			4.95%
Non-controlling interest			—				4			(100.00)%
TOTAL SHAREHOLDERS' EQUITY			172,274				164,146			4.95%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,940,809			$	1,834,643			5.79%

   
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)			2021				2020			% Change				2021				2020			% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees		$	13,406			$	13,814			(2.95)%			$	53,232			$	57,217			(6.96)%
Investment securities:
Taxable			790				820			(3.66)%				3,281				3,778			(13.16)%
Tax-exempt			160				166			(3.61)%				655				650			0.77	%
Dividend and other interest income			343				246			39.43	%			1,246				993			25.48	%
TOTAL INTEREST AND DIVIDEND INCOME			14,699				15,046			(2.31)%				58,414				62,638			(6.74)%
INTEREST EXPENSE:
Deposits			1,064				2,159			(50.72)%				5,545				10,565			(47.52)%
Short-term borrowings			2				6			(66.67)%				9				43			(79.07)%
Long-term borrowings			712				914			(22.10)%				3,142				3,807			(17.47)%
TOTAL INTEREST EXPENSE			1,778				3,079			(42.25)%				8,696				14,415			(39.67)%
NET INTEREST INCOME			12,921				11,967			7.97	%			49,718				48,223			3.10	%
PROVISION FOR LOAN LOSSES			(300	)			585			(151.28)%				640				2,625			(75.62)%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			13,221				11,382			16.16	%			49,078				45,598			7.63	%
NON-INTEREST INCOME:
Service charges			485				441			9.98	%			1,703				1,690			0.77	%
Debt securities gains, available for sale			376				372			1.08	%			699				1,592			(56.09)%
Equity securities (losses) gains			(12	)			(3	)		(300.00)%				(37	)			27			(237.04)%
Securities (losses) gains, trading			(4	)			5			(180.00)%				(3	)			(11	)		72.73	%
Bank-owned life insurance			302				161			87.58	%			916				653			40.28	%
Gain on sale of loans			440				1,227			(64.14)%		.		2,474				4,148			(40.36)%
Insurance commissions			117				96			21.88	%			553				416			32.93	%
Brokerage commissions			188				191			(1.57)%				851				970			(12.27)%
Debit card income			345				344			0.29	%			1,511				1,280			18.05	%
Other			958				241			297.51	%			3,002				1,403			113.97	%
TOTAL NON-INTEREST INCOME			3,195				3,075			3.90	%			11,669				12,168			(4.10)%
NON-INTEREST EXPENSE:
Salaries and employee benefits			5,907				5,270			12.09	%			23,014				21,632			6.39	%
Occupancy			771				723			6.64	%			3,209				2,650			21.09	%
Furniture and equipment			859				886			(3.05)%				3,522				3,411			3.25	%
Software amortization			236				235			0.43	%			868				978			(11.25)%
Pennsylvania shares tax			253				341			(25.81)%				1,350				1,289			4.73	%
Professional fees			550				474			16.03	%			2,432				2,362			2.96	%
Federal Deposit Insurance Corporation deposit insurance			258				289			(10.73)%				963				939			2.56	%
Marketing			111				91			21.98	%			545				261			108.81	%
Intangible amortization			44				53			(16.98)%				191				227			(15.86)%
Other			1,270				1,278			(0.63)%				4,811				5,319			(9.55)%
TOTAL NON-INTEREST EXPENSE			10,259				9,640			6.42	%			40,905				39,068			4.70	%
INCOME BEFORE INCOME TAX PROVISION			6,157				4,817			27.82	%			19,842				18,698			6.12	%
INCOME TAX PROVISION			1,278				911			40.29	%			3,794				3,474			9.21	%
NET INCOME		$	4,879			$	3,906			24.91	%		$	16,048			$	15,224			5.41	%
Earnings attributable to noncontrolling interest			—				5			(100.00)%				15				18			(16.67)%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'		$	4,879			$	3,901			25.07	%		$	16,033			$	15,206			5.44	%
EARNINGS PER SHARE - BASIC		$	0.69			$	0.55			25.45	%		$	2.27			$	2.16			5.09	%
EARNINGS PER SHARE - DILUTED		$	0.69			$	0.55			25.45	%		$	2.27			$	2.16			5.09	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC			7,068,327				7,050,389			0.25	%			7,061,818				7,044,542			0.25	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED			7,068,327				7,050,389			0.25	%			7,061,818				7,044,542			0.25	%
DIVIDENDS DECLARED PER SHARE		$	0.32			$	0.32			—	%		$	1.28			$	1.28			—	%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)

		Three Months Ended
		December 31, 2021									December 31, 2020
(Dollars in Thousands)		Average  Balance			Interest			Average  Rate			Average  Balance			Interest			Average  Rate
ASSETS:
Tax-exempt loans		$	46,583		$	317		2.70	%		$	42,882		$	303		2.81	%
All other loans			1,320,972			13,156		3.95	%			1,304,521			13,575		4.14	%
Total loans			1,367,555			13,473		3.91	%			1,347,403			13,878		4.10	%
Federal funds sold			47,391			85		0.71	%			—			—		—	%
Taxable securities			148,434			978		2.67	%			140,074			1,048		3.04	%
Tax-exempt securities			38,043			202		2.15	%			33,187			210		2.57	%
Total securities			186,477			1,180		2.57	%			173,261			1,258		2.95	%
Interest-bearing deposits			184,591			70		0.15	%			183,428			18		0.04	%
Total interest-earning assets			1,786,014			14,808		3.30	%			1,704,092			15,154		3.54	%
Other assets			130,859									123,352
TOTAL ASSETS		$	1,916,873								$	1,827,444
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	233,791			22		0.04	%		$	206,563			47		0.09	%
Super Now deposits			345,653			206		0.24	%			271,600			433		0.63	%
Money market deposits			301,651			211		0.28	%			277,980			304		0.44	%
Time deposits			218,260			625		1.14	%			285,281			1,375		1.92	%
Total interest-bearing deposits			1,099,355			1,064		0.38	%			1,041,424			2,159		0.82	%
Short-term borrowings			7,255			2		0.11	%			11,068			6		0.29	%
Long-term borrowings			125,991			712		2.25	%			153,506			914		2.50	%
Total borrowings			133,246			714		2.13	%			164,574			920		2.35	%
Total interest-bearing liabilities			1,232,601			1,778		0.57	%			1,205,998			3,079		1.03	%
Demand deposits			496,478									439,841
Other liabilities			19,463									18,218
Shareholders’ equity			168,331									163,387
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,916,873								$	1,827,444
Interest rate spread								2.73	%								2.51	%
Net interest income/margin					$	13,030		2.90	%					$	12,075		2.81	%

		Three Months Ended December 31,
			2021			2020
Total interest income		$	14,699		$	15,046
Total interest expense			1,778			3,079
Net interest income			12,921			11,967
Tax equivalent adjustment			109			108
Net interest income (fully taxable equivalent)		$	13,030		$	12,075

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)

		Twelve Months Ended
		December 31, 2021									December 31, 2020
(Dollars in Thousands)		Average  Balance			Interest			Average  Rate			Average  Balance			Interest			Average  Rate
ASSETS:
Tax-exempt loans		$	46,312		$	1,308		2.82	%		$	45,650		$	1,441		3.16	%
All other loans			1,299,321			52,199		4.02	%			1,304,209			56,079		4.30	%
Total loans			1,345,633			53,507		3.98	%			1,349,859			57,520		4.26	%
Federal funds sold			28,395			202		0.71	%			—			—		—	%
Taxable securities			148,066			4,083		2.80	%			142,714			4,630		3.30	%
Tax-exempt securities			36,993			829		2.27	%			28,973			823		2.89	%
Total securities			185,059			4,912		2.69	%			171,687			5,453		3.23	%
Interest-bearing deposits			201,273			242		0.12	%			140,022			141		0.10	%
Total interest-earning assets			1,760,360			58,863		3.35	%			1,661,568			63,114		3.80	%
Other assets			129,582									118,536
TOTAL ASSETS		$	1,889,942								$	1,780,104
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	225,637			116		0.05	%		$	193,568			256		0.13	%
Super Now deposits			307,446			900		0.29	%			254,177			1,755		0.69	%
Money market deposits			305,883			972		0.32	%			245,633			1,529		0.62	%
Time deposits			244,341			3,557		1.46	%			338,895			7,025		2.07	%
Total interest-bearing deposits			1,083,307			5,545		0.51	%			1,032,273			10,565		1.02	%
Short-term borrowings			7,178			9		0.13	%			12,660			43		0.34	%
Long-term borrowings			135,474			3,142		2.32	%			162,636			3,807		2.34	%
Total borrowings			142,652			3,151		2.21	%			175,296			3,850		2.20	%
Total interest-bearing liabilities			1,225,959			8,696		0.71	%			1,207,569			14,415		1.19	%
Demand deposits			478,984									394,210
Other liabilities			23,568									20,858
Shareholders’ equity			161,431									157,467
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,889,942								$	1,780,104
Interest rate spread								2.64	%								2.61	%
Net interest income/margin					$	50,167		2.85	%					$	48,699		2.94	%

		Twelve Months Ended December 31,
			2021			2020
Total interest income		$	58,414		$	62,638
Total interest expense			8,696			14,415
Net interest income			49,718			48,223
Tax equivalent adjustment			449			476
Net interest income (fully taxable equivalent)		$	50,167		$	48,699

(Dollars in Thousands, Except Per Share Data, Unaudited)		Quarter Ended
		12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020
Operating Data
Net income		$	4,879			$	4,125			$	3,588			$	3,441			$	3,901
Net interest income			12,921				12,632				12,095				12,070				11,967
Provision for loan losses			(300	)			75				350				515				585
Net security gains			360				40				140				119				374
Non-interest income, excluding net security gains			2,835				2,911				2,769				2,495				2,701
Non-interest expense			10,259				10,447				10,248				9,951				9,640
Performance Statistics
Net interest margin			2.90	%			2.85	%			2.78	%			2.88	%			2.81	%
Annualized return on average assets			1.02	%			0.86	%			0.76	%			0.75	%			0.85	%
Annualized return on average equity			11.59	%			9.85	%			8.70	%			8.59	%			9.55	%
Annualized net loan charge-offs (recoveries) to average loans			0.02	%			(0.01	)%			0.03	%			0.04	%			0.06	%
Net charge-offs (recoveries)			81				(44	)			114				116				211
Efficiency ratio			64.83	%			66.93	%			68.61	%			67.96	%			65.36	%
Per Share Data
Basic earnings per share		$	0.69			$	0.58			$	0.51			$	0.49			$	0.55
Diluted earnings per share			0.69				0.58				0.51				0.49				0.55
Dividend declared per share			0.32				0.32				0.32				0.32				0.32
Book value			24.37				23.84				23.63				23.25				23.27
Common stock price:
High			24.65				24.42				26.51				27.78				27.30
Low			23.50				22.78				23.03				20.55				19.61
Close			23.65				23.92				23.82				24.09				26.01
Weighted average common shares:
Basic			7,068				7,064				7,060				7,055				7,050
Fully Diluted			7,068				7,064				7,060				7,055				7,050
End-of-period common shares:
Issued			7,550				7,546				7,542				7,537				7,533
Treasury			480				480				480				480				480

(Dollars in Thousands, Except Per Share Data, Unautdited)		Quarter Ended
		12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020
Financial Condition Data:
General
Total assets		$	1,940,809			$	1,910,791			$	1,894,870			$	1,896,192			$	1,834,643
Loans, net			1,377,971				1,332,668				1,323,509				1,321,697				1,330,524
Goodwill			17,104				17,104				17,104				17,104				17,104
Intangibles			480				524				568				618				671
Total deposits			1,621,315				1,593,019				1,563,696				1,564,364				1,494,443
Noninterest-bearing			494,360				481,875				477,344				478,916				449,357
Savings			236,312				231,189				226,573				224,890				209,924
NOW			366,399				340,441				296,450				290,355				287,775
Money Market			318,877				305,156				301,405				324,207				283,742
Time Deposits			205,367				234,358				261,924				245,996				263,645
Total interest-bearing deposits			1,126,955				1,111,144				1,086,352				1,085,448				1,045,086
Core deposits*			1,415,948				1,358,661				1,301,772				1,318,368				1,230,798
Shareholders’ equity			172,274				168,478				166,830				164,059				164,142
Asset Quality
Non-performing loans		$	6,250			$	7,763			$	7,931			$	9,272			$	10,334
Non-performing loans to total assets			0.32	%			0.41	%			0.42	%			0.49	%			0.56	%
Allowance for loan losses			14,176				14,557				14,438				14,202				13,803
Allowance for loan losses to total loans			1.02	%			1.08	%			1.08	%			1.06	%			1.03	%
Allowance for loan losses to non-performing loans			226.82	%			187.52	%			182.05	%			153.17	%			133.57	%
Non-performing loans to total loans			0.45	%			0.58	%			0.59	%			0.69	%			0.77	%
Capitalization
Shareholders’ equity to total assets			8.88	%			8.82	%			8.80	%			8.65	%			8.95	%

* Core deposits are defined as total deposits less time 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)			2021				2020				2021				2020
GAAP net income		$	4,879			$	3,901			$	16,033			$	15,206
Less: net securities gains, net of tax			284				295				521				1,270
Non-GAAP core earnings		$	4,595			$	3,606			$	15,512			$	13,936
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2021				2020				2021				2020
Return on average assets (ROA)			1.02	%			0.85	%			0.85	%			0.85	%
Less: net securities gains, net of tax			0.06	%			0.06	%			0.03	%			0.07	%
Non-GAAP core ROA			0.96	%			0.79	%			0.82	%			0.78	%
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2021				2020				2021				2020
Return on average equity (ROE)			11.59	%			9.55	%			9.93	%			9.66	%
Less: net securities gains, net of tax			0.67	%			0.72	%			0.32	%			0.81	%
Non-GAAP core ROE			10.92	%			8.83	%			9.61	%			8.85	%
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2021				2020				2021				2020
Basic earnings per share (EPS)		$	0.69			$	0.55			$	2.27			$	2.16
Less: net securities gains, net of tax			0.04				0.04				0.07				0.18
Non-GAAP basic core EPS		$	0.65			$	0.51			$	2.20			$	1.98
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2021				2020				2021				2020
Diluted EPS		$	0.69			$	0.55			$	2.27			$	2.16
Less: net securities gains, net of tax			0.04				0.04				0.07				0.18
Non-GAAP diluted core EPS		$	0.65			$	0.51			$	2.20			$	1.98

COVID-19 Loan Deferrals as of December 31, 2021

(In Thousands, Unaudited)		Amount
Commercial, financial, and agricultural		$	—
Real estate mortgage:
Residential			192
Commercial			158
Consumer automobile loans			20
Other consumer installment loans			9
Total loan deferrals		$	379

 

FAQ

What were Penns Woods Bancorp's earnings for the year ended December 31, 2021?

Penns Woods Bancorp reported a net income of $16.0 million for the year ended December 31, 2021.

How did Penns Woods Bancorp's earnings per share change in 2021?

Earnings per share increased to $2.27 for 2021, up from $2.16 in 2020.

What is the current total asset value for Penns Woods Bancorp?

As of December 31, 2021, total assets were valued at $1.9 billion.

How much did deposits increase for Penns Woods Bancorp in 2021?

Deposits increased by $126.9 million to $1.6 billion as of December 31, 2021.