Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

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Insights

The Q4 2024 earnings report reveals both strengths and challenges for Penns Woods Bancorp. While annual net income increased by 6.6% to $17.7 million, the quarterly performance shows some pressure points that warrant attention.

Core operations demonstrate resilience with core earnings reaching $18.4 million for the year, up from $16.7 million in 2023. However, the significant increase in non-performing loans to $8.9 million from $3.1 million signals potential credit quality concerns, though the exposure to volatile office space remains minimal at $14.1 million.

The deposit strategy shows a calculated shift, with $178.3 million in brokered deposits being utilized to fund loan growth while reducing reliance on costly borrowings. This tactical approach, combined with the focus on 5-24 month time deposits, suggests a proactive stance on liability management in a high-rate environment.

The announced merger with Northwest Bancshares incurred $581,000 in after-tax expenses, but the strategic benefits could outweigh these short-term costs. The improved tangible book value per share of $24.97 and strengthened equity ratio of 9.19% provide a solid foundation for the merger integration.

The stabilization of core deposits at $1.2 billion over five quarters, despite rate competition, indicates strong customer relationships. However, the migration from non-interest-bearing to interest-bearing accounts continues to pressure margins, highlighting the ongoing challenges in the current rate environment.

01/29/2025 - 02:13 PM

WILLIAMSPORT, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $17.7 million for the twelve months ended December 31, 2024, resulting in basic and diluted earnings per share of $2.35.

Highlights

Net income, as reported under generally accepted accounting principles (GAAP), for the three and twelve months ended December 31, 2024 was $3.7 million and $17.7 million, respectively, compared to $5.6 million and $16.6 million for the same periods of 2023. Results for the three and twelve months ended December 31, 2024 compared to 2023 were impacted by an increase in net interest income of $1.6 million and $3.9 million, respectively, as the cost of funds stabilized. The three and twelve month periods ended December 31, 2024 have been impacted by after-tax merger related expenses of $581,000 resulting from the announced acquisition of the company by Northwest Bancshares, Inc. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the twelve month period ended December 31, 2024.
The allowance for credit losses was impacted for the three and twelve months ended December 31, 2024 by a provision for credit losses of $420,000 and $121,000, respectively, compared to a negative provision for credit losses of $1.7 million and $1.5 million for the 2023 periods. The recognition of a negative provision for credit losses for the 2023 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 months ended December 31, 2024 were $0.50 and $0.49, respectively, while the twelve months ended December 31, 2024 basic and diluted was $2.35. This compares to basic and diluted earnings per share of $0.77 and $2.34, respectively, for the three and twelve month periods ended December 31, 2023.
Annualized return on average assets was 0.67% for the three months ended December 31, 2024, compared to 1.02% for the corresponding period of 2023. Return on average assets was 0.80% for the twelve months ended December 31, 2024, compared to 0.79% for the corresponding period of 2023.
Annualized return on average equity was 7.28% for the three months ended December 31, 2024, compared to 12.60% for the corresponding period of 2023. Return on average equity was 9.14% for the twelve months ended December 31, 2024, compared to 9.84% for the corresponding period of 2023.

Net Income

Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses, was $4.4 million and $18.4 million, respectively, for the three and twelve months ended December 31, 2024 compared to $5.6 million and $16.7 million for the same periods of 2023. Core earnings per share (non-GAAP) for the three months ended December 31, 2024 were basic $0.58 and diluted $0.57 while basic and diluted for the twelve months ended December 31, 2024 were $2.44. Basic and diluted core earnings per share for the three and twelve month periods of 2023 were $0.77 and $2.36, respectively. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.78% and 8.48%, respectively, for the three months ended December 31, 2024, compared to 1.02% and 12.63% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.83% and 9.46%, respectively, for the twelve months ended December 31, 2024, compared to 0.79% and 9.93% for the corresponding period of 2023. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share 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, 2024 was 2.98% and 2.83% respectively, compared to 2.73% and 2.80% for the corresponding periods of 2023. The increase in the net interest margin for the three month period was driven by an increase in the rate collected on interest-earning assets of 34 basis points ("bps"), while the decrease in the net interest margin for the twelve month period was driven by a 74 bps increase in the rate paid on interest-bearing liabilities. The overall increase in interest rates over the periods resulted in increases to both the yield on the earnings asset portfolio and the rate paid on interest-bearing liabilities. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets coupled with portfolio growth. The average loan portfolio balance increased $47.4 million and $106.9 million, respectively, for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 31 bps and 61 bps, resulting in an increase in taxable equivalent interest income of $2.0 million and $16.5 million, for the periods. The three and twelve month periods ended December 31, 2024 were impacted by an increase of 57 bps and 66 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates, which resulted in an increase in taxable equivalent interest income of $285,000 and $1.5 million, respectively. Short-term borrowings decreased leading to a decrease of $1.8 million and $3.9 million, respectively, in expense for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 37 bps and 96 bps, respectively, or $2.1 million and $13.8 million in expense, for the three and twelve month periods ended December 31, 2024 compared to the corresponding periods of 2023 due to the rate environment, an increase in competition for deposits, and a migration of deposit balances from core deposits to higher rate time 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, 2024 compared to the same periods of 2023 increased 29 bps and 87 bps, respectively, or $1.7 million and $9.9 million in expense, as deposit gathering campaigns continued to focus on time deposits with a maturity of five to twenty-four months. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit funding costs, while lowering the reliance on higher cost short-term borrowings.

Assets

Total assets increased to $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023. Net loans increased $36.9 million to $1.9 billion at December 31, 2024 compared to December 31, 2023, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $10.7 million from December 31, 2023 to December 31, 2024.

Non-performing Loans

The ratio of non-performing loans to total loans ratio increased to 0.47% at December 31, 2024 from 0.17% at December 31, 2023, as non-performing loans increased to $8.9 million at December 31, 2024 from $3.1 million at December 31, 2023. 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 charge offs of $228,000 and $540,000 for the three and twelve months ended December 31, 2024, respectively, impacted the allowance for credit losses, which was 0.63% of total loans at December 31, 2024 compared to 0.62% at December 31, 2023. Exposure to non-owner occupied office space is minimal at $14.1 million at December 31, 2024 with none of these loans being delinquent.

Deposits

Deposits increased $116.6 million to $1.7 billion at December 31, 2024 compared to December 31, 2023. Noninterest-bearing deposits decreased $14.2 million to $456.9 million at December 31, 2024 compared to December 31, 2023. Core deposits declined $17.8 million as deposits migrated from core deposit accounts into time deposits as market rates and competition for deposits increased. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $130.8 million from December 31, 2023 to December 31, 2024 due to growth in the time deposit portfolio of $80.8 million as customers sought a higher rate of interest. Brokered deposit balances increased $53.6 million to $178.3 million at December 31, 2024 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 throughout 2023 and 2024 with current efforts centered on five months.

Shareholders’ Equity

Shareholders’ equity increased $13.7 million to $205.2 million at December 31, 2024 compared to December 31, 2023. During the three and twelve months ended December 31, 2024 there were no shares issued under the previously disclosed registered at-the-market offering. A total 31,066 shares for net proceeds of $632,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2024. Accumulated other comprehensive loss of $5.3 million at December 31, 2024 decreased from a loss of $9.2 million at December 31, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $4.6 million at December 31, 2024 from a net unrealized loss of $6.4 million at December 31, 2023, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.16 at December 31, 2024 compared to $25.51 at December 31, 2023, and an equity to asset ratio of 9.19% at December 31, 2024 and 8.69% at December 31, 2023. Tangible book value per share (a non-GAAP measure) increased to $24.97 at December 31, 2024 compared to $23.29 at December 31, 2023. Dividends declared for the three and twelve months ended December 31, 2024 and 2023 were $0.32 and $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; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing. 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, 2023.

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)		2024			2023		% Change
ASSETS:
Noninterest-bearing cash	$	19,989		$	28,969		(31.00	)	%
Interest-bearing balances in other financial institutions		8,983			8,493		5.77		%
Total cash and cash equivalents		28,972			37,462		(22.66	)	%

Investment debt securities, available for sale, at fair value		184,542			190,945		(3.35	)	%
Investment equity securities, at fair value		1,111			1,122		(0.98	)	%
Restricted investment in bank stock		20,032			24,323		(17.64	)	%
Loans held for sale		3,266			3,993		(18.21	)	%
Loans		1,877,078			1,839,764		2.03		%
Allowance for credit losses		(11,848	)		(11,446	)	3.51		%
Loans, net		1,865,230			1,828,318		2.02		%
Premises and equipment, net		27,789			30,250		(8.14	)	%
Accrued interest receivable		11,114			11,044		0.63		%
Bank-owned life insurance		45,681			33,867		34.88		%
Investment in limited partnerships		6,691			7,815		(14.38	)	%
Goodwill		16,450			16,450		—		%
Intangibles		107			210		(49.05	)	%
Operating lease right of use asset		2,811			2,512		11.90		%
Deferred tax asset		3,493			4,655		(24.96	)	%
Other assets		15,049			11,843		27.07		%
TOTAL ASSETS	$	2,232,338		$	2,204,809		1.25		%

LIABILITIES:
Interest-bearing deposits	$	1,249,145		$	1,118,320		11.70		%
Noninterest-bearing deposits		456,936			471,173		(3.02	)	%
Total deposits		1,706,081			1,589,493		7.33		%
									%
Short-term borrowings		42,200			145,926		(71.08	)	%
Long-term borrowings		254,588			252,598		0.79		%
Accrued interest payable		4,664			3,814		22.29		%
Operating lease liability		2,889			2,570		12.41		%
Other liabilities		16,685			18,852		(11.49	)	%
TOTAL LIABILITIES		2,027,107			2,013,253		0.69		%

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; 8,066,968 and 8,019,219 shares issued; 7,556,743 and 7,508,994 shares outstanding		44,815			44,550		0.59		%
Additional paid-in capital		63,193			61,733		2.37		%
Retained earnings		115,331			107,238		7.55		%
Accumulated other comprehensive loss:
Net unrealized loss on available for sale securities		(4,567	)		(6,396	)	28.60		%
Defined benefit plan		(726	)		(2,754	)	73.64		%
Treasury stock at cost, 510,225 shares		(12,815	)		(12,815	)	—		%
TOTAL SHAREHOLDERS' EQUITY		205,231			191,556		7.14		%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,232,338		$	2,204,809		1.25		%


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)		2024			2023		% Change					2024			2023		% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	25,759		$	23,720		8.60		%		$	99,780		$	83,291		19.80		%
Investment securities:
Taxable		1,826			1,476		23.71		%			7,039			5,346		31.67		%
Tax-exempt		59			107		(44.86	)	%			292			517		(43.52	)	%
Dividend and other interest income		607			614		(1.14	)	%			2,587			2,441		5.98		%
TOTAL INTEREST AND DIVIDEND INCOME		28,251			25,917		9.01		%			109,698			91,595		19.76		%

INTEREST EXPENSE:
Deposits		9,523			7,445		27.91		%			35,962			22,131		62.50		%
Short-term borrowings		479			2,317		(79.33	)	%			4,503			8,401		(46.40	)	%
Long-term borrowings		2,686			2,207		21.70		%			10,353			6,099		69.75		%
TOTAL INTEREST EXPENSE		12,688			11,969		6.01		%			50,818			36,631		38.73		%

NET INTEREST INCOME		15,563			13,948		11.58		%			58,880			54,964		7.12		%

PROVISION (RECOVERY) FOR CREDIT LOSSES		420			(1,742	)	124.11		%			121			(1,479	)	108.18		%

NET INTEREST INCOME AFTER PROVISION (RECOVERY) OF CREDIT LOSSES		15,143			15,690		(3.49	)	%			58,759			56,443		4.10		%

NON-INTEREST INCOME:
Service charges		516			533		(3.19	)	%			2,067			2,090		(1.10	)	%
Net debt securities losses, available for sale		(9	)		(68	)	86.76		%			(49	)		(193	)	74.61		%
Net equity securities (losses) gains		(35	)		50		(170.00	)	%			(11	)		15		(173.33	)	%
Bank-owned life insurance		303			171		77.19		%			1,159			1,063		9.03		%
Gain on sale of loans		463			314		47.45		%	.		1,484			1,046		41.87		%
Insurance commissions		128			113		13.27		%			553			529		4.54		%
Brokerage commissions		163			127		28.35		%			684			575		18.96		%
Loan broker income		543			264		105.68		%			1,384			992		39.52		%
Debit card income		385			333		15.62		%			1,437			1,328		8.21		%
Other		253			384		(34.11	)	%			910			930		(2.15	)	%
TOTAL NON-INTEREST INCOME		2,710			2,221		22.02		%			9,618			8,375		14.84		%

NON-INTEREST EXPENSE:
Salaries and employee benefits		7,032			6,284		11.90		%			26,256			25,062		4.76		%
Occupancy		758			746		1.61		%			3,152			3,168		(0.51	)	%
Furniture and equipment		1,233			889		38.70		%			3,669			3,392		8.17		%
Software amortization		339			250		35.60		%			996			843		18.15		%
Pennsylvania shares tax		351			275		27.64		%			1,373			1,082		26.89		%
Professional fees		523			640		(18.28	)	%			2,177			2,953		(26.28	)	%
Federal Deposit Insurance Corporation deposit insurance		385			456		(15.57	)	%			1,564			1,578		(0.89	)	%
Marketing		74			90		(17.78	)	%			283			684		(58.63	)	%
Intangible amortization		25			25		—		%			102			117		(12.82	)	%
Merger expense		735			—		n/a					735			—		n/a
Other		1,525			1,342		13.64		%			6,177			5,617		9.97		%
TOTAL NON-INTEREST EXPENSE		12,980			10,997		18.03		%			46,484			44,496		4.47		%
INCOME BEFORE INCOME TAX PROVISION		4,873			6,914		(29.52	)	%			21,893			20,322		7.73		%
INCOME TAX PROVISION		1,132			1,359		(16.70	)	%			4,154			3,714		11.85		%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'	$	3,741		$	5,555		(32.66	)	%		$	17,739		$	16,608		6.81		%
EARNINGS PER SHARE - BASIC	$	0.50		$	0.77		(35.06	)	%		$	2.35		$	2.34		0.43		%
EARNINGS PER SHARE - DILUTED	$	0.49		$	0.77		(36.36	)	%		$	2.35		$	2.34		0.43		%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,555,168			7,255,222		4.13		%			7,535,397			7,112,450		5.95		%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,693,185			7,255,222		6.04		%			7,543,111			7,112,450		6.06		%


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

	Three Months Ended
	December 31, 2024						December 31, 2023
(Dollars in Thousands)	Average Balance (1)		Interest		Average Rate		Average Balance (1)		Interest		Average Rate
ASSETS:
Tax-exempt loans (3)	$	69,967	$	453	2.58	%	$	68,234	$	478	2.78	%
All other loans		1,806,212		25,401	5.59	%		1,760,509		23,342	5.26	%
Total loans (2)		1,876,179		25,854	5.48	%		1,828,743		23,820	5.17	%

Taxable securities		199,868		2,277	4.63	%		193,744		1,932	4.04	%
Tax-exempt securities (3)		11,317		75	2.70	%		18,041		135	3.03	%
Total securities		211,185		2,352	4.53	%		211,785		2,067	3.96	%

Interest-bearing balances in other financial institutions		13,136		156	4.72	%		11,795		158	5.31	%

Total interest-earning assets		2,100,500		28,362	5.38	%		2,052,323		26,045	5.04	%

Other assets		137,840						130,421

TOTAL ASSETS	$	2,238,340					$	2,182,744

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings	$	209,300		266	0.51	%	$	222,740		229	0.41	%
Super Now deposits		220,792		1,070	1.93	%		227,113		1,129	1.97	%
Money market deposits		323,181		2,656	3.27	%		293,542		2,217	3.00	%
Time deposits		504,683		5,531	4.36	%		377,516		3,870	4.07	%
Total interest-bearing deposits		1,257,956		9,523	3.01	%		1,120,911		7,445	2.64	%

Short-term borrowings		38,495		479	4.96	%		163,088		2,317	5.63	%
Long-term borrowings		256,521		2,686	4.17	%		235,998		2,207	3.71	%
Total borrowings		295,016		3,165	4.27	%		399,086		4,524	4.50	%

Total interest-bearing liabilities		1,552,972		12,688	3.25	%		1,519,997		11,969	3.12	%

Demand deposits		454,612						457,546
Other liabilities		25,218						28,786
Shareholders’ equity		205,538						176,415

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,238,340					$	2,182,744
Interest rate spread (3)					2.13	%					1.92	%
Net interest income/margin (3)			$	15,674	2.98	%			$	14,076	2.73	%

1.	Information on this table has been calculated using average daily balance sheets to obtain average balances.
2.	Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
3.	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,
		2024		2023
Total interest income	$	28,251	$	25,917
Total interest expense		12,688		11,969
Net interest income (GAAP)		15,563		13,948
Tax equivalent adjustment		111		128
Net interest income (fully taxable equivalent) (non-GAAP)	$	15,674	$	14,076


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

	Twelve Months Ended
	December 31, 2024						December 31, 2023
(Dollars in Thousands)	Average Balance (1)		Interest		Average Rate		Average Balance (1)		Interest		Average Rate
ASSETS:
Tax-exempt loans (3)	$	69,448	$	1,943	2.80	%	$	66,863	$	1,849	2.77	%
All other loans		1,796,096		98,245	5.47	%		1,691,742		81,830	4.84	%
Total loans (2)		1,865,544		100,188	5.37	%		1,758,605		83,679	4.76	%

Taxable securities		202,934		9,072	4.47	%		189,804		7,263	3.83	%
Tax-exempt securities (3)		13,045		370	2.84	%		23,872		654	2.74	%
Total securities		215,979		9,442	4.37	%		213,676		7,917	3.71	%

Interest-bearing balances in other financial institutions		11,074		554	5.00	%		10,916		524	4.80	%

Total interest-earning assets		2,092,597		110,184	5.27	%		1,983,197		92,120	4.65	%

Other assets		132,720						131,704

TOTAL ASSETS	$	2,225,317					$	2,114,901

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings	$	215,107		1,077	0.50	%	$	231,000		685	0.30	%
Super Now deposits		218,932		4,373	2.00	%		276,868		4,155	1.50	%
Money market deposits		311,836		10,390	3.33	%		292,755		7,024	2.40	%
Time deposits		460,869		20,122	4.37	%		293,252		10,267	3.50	%
Total interest-bearing deposits		1,206,744		35,962	2.98	%		1,093,875		22,131	2.02	%

Short-term borrowings		82,046		4,503	5.49	%		157,140		8,401	5.36	%
Long-term borrowings		256,850		10,353	4.03	%		186,094		6,099	3.28	%
Total borrowings		338,896		14,856	4.40	%		343,234		14,500	4.23	%

Total interest-bearing liabilities		1,545,640		50,818	3.29	%		1,437,109		36,631	2.55	%

Demand deposits		454,878						477,828
Other liabilities		30,680						31,243
Shareholders’ equity		194,119						168,721

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,225,317					$	2,114,901
Interest rate spread (3)					1.98	%					2.10	%
Net interest income/margin (3)			$	59,366	2.83	%			$	55,489	2.80	%

1.	Information on this table has been calculated using average daily balance sheets to obtain average balances.
2.	Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
3.	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,
		2024		2023
Total interest income	$	109,698	$	91,595
Total interest expense		50,818		36,631
Net interest income (GAAP)		58,880		54,964
Tax equivalent adjustment		486		525
Net interest income (fully taxable equivalent) (non-GAAP)	$	59,366	$	55,489

(Dollars in Thousands, Except Per Share Data, Unaudited)	Quarter Ended
	12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
Operating Data
Net income	$	3,741			$	4,801			$	5,390			$	3,808			$	5,555
Net interest income		15,563				15,056				14,515				13,746				13,948
Provision (recovery) for credit losses		420				740				(1,177	)			138				(1,742	)
Net security (losses) gains		(44	)			36				(19	)			(33	)			(18	)
Non-interest income, excluding net security (losses) gains		2,754				2,385				2,044				2,495				2,239
Non-interest expense		12,980				10,884				10,996				11,623				10,997

Performance Statistics
Net interest margin		2.98		%		2.88		%		2.83		%		2.69		%		2.73		%
Annualized cost of total deposits		2.22		%		2.27		%		2.14		%		2.01		%		1.89		%
Annualized non-interest income to average assets		0.48		%		0.43		%		0.37		%		0.45		%		0.41		%
Annualized non-interest expense to average assets		2.32		%		1.95		%		1.98		%		2.10		%		2.02		%
Annualized return on average assets		0.67		%		0.86		%		0.97		%		0.69		%		1.02		%
Annualized return on average equity		7.28		%		9.60		%		11.12		%		8.03		%		12.60		%
Annualized net loan charge-offs (recoveries) to average loans		0.05		%		0.07		%		(0.09	)	%		0.08		%		(0.05	)	%
Net charge-offs (recoveries)		228				328				(396	)			380				(209	)
Efficiency ratio		70.73		%		62.26		%		66.25		%		71.41		%		67.78		%

Per Share Data
Basic earnings per share	$	0.50			$	0.64			$	0.72			$	0.51			$	0.77
Diluted earnings per share		0.49				0.64				0.72				0.51				0.77
Dividend declared per share		0.32				0.32				0.32				0.32				0.32
Book value		27.16				26.96				26.13				25.72				25.51
Tangible book value (Non-GAAP)		24.97				24.77				23.93				23.50				23.29
Common stock price:
High		34.06				23.98				21.08				22.64				23.64
Low		23.74				19.29				17.17				18.44				20.05
Close		30.39				23.79				20.55				19.41				22.51
Weighted average common shares:
Basic		7,555				7,544				7,529				7,513				7,255
Fully Diluted		7,693				7,544				7,529				7,513				7,255
End-of-period common shares:
Issued		8,067				8,065				8,052				8,036				8,019
Treasury		(510	)			(510	)			(510	)			(510	)			(510	)

(Dollars in Thousands, Unaudited)	Quarter Ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
Financial Condition Data:
General
Total assets	$	2,232,338		$	2,259,250		$	2,234,617		$	2,210,116		$	2,204,809
Loans, net		1,865,230			1,863,586			1,855,054			1,843,805			1,828,318
Goodwill		16,450			16,450			16,450			16,450			16,450
Intangibles		107			133			158			184			210
Total deposits		1,706,081			1,700,321			1,648,093			1,618,562			1,589,493
Noninterest-bearing		456,936			452,922			461,092			471,451			471,173
Savings		208,340			211,560			218,354			220,932			219,287
NOW		212,687			218,279			209,906			208,073			214,888
Money Market		308,977			321,614			320,101			299,916			299,353
Time Deposits		340,844			328,294			310,187			292,372			260,067
Brokered Deposits		178,297			167,652			128,453			125,818			124,725
Total interest-bearing deposits		1,249,145			1,247,399			1,187,001			1,147,111			1,118,320

Core deposits*		1,186,940			1,204,375			1,209,453			1,200,372			1,204,701
Shareholders’ equity		205,231			203,694			197,087			193,517			191,556

Asset Quality
Non-performing loans	$	8,904		$	7,940		$	6,784		$	7,958		$	3,148
Non-performing loans to total assets		0.40	%		0.35	%		0.30	%		0.36	%		0.14	%
Allowance for credit losses on loans		11,848			11,588			11,234			11,542			11,446
Allowance for credit losses on loans to total loans		0.63	%		0.62	%		0.60	%		0.62	%		0.62	%
Allowance for credit losses on loans to non-performing loans		133.06	%		145.94	%		165.60	%		145.04	%		363.60	%
Non-performing loans to total loans		0.47	%		0.42	%		0.36	%		0.43	%		0.17	%

Capitalization
Shareholders’ equity to total assets		9.19	%		9.02	%		8.82	%		8.76	%		8.69	%

* 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, Unaudited)	2024			2023			2024			2023
GAAP net income	$	3,741		$	5,555		$	17,739		$	16,608
Net securities losses, net of tax		35			14			47			141
Merger expenses, net of tax		581			—			581			—
Non-GAAP core earnings	$	4,357		$	5,569		$	18,367		$	16,749

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Return on average assets (ROA)		0.67	%		1.02	%		0.80	%		0.79	%
Net securities losses, net of tax		0.01	%		—	%		—	%		—	%
Merger expenses, net of tax		0.10	%		—	%		0.03	%		—	%
Non-GAAP core ROA		0.78	%		1.02	%		0.83	%		0.79	%

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Return on average equity (ROE)		7.28	%		12.60	%		9.14	%		9.84	%
Net securities losses, net of tax		0.07	%		0.03	%		0.02	%		0.09	%
Merger expenses, net of tax		1.13	%		—	%		0.30	%		—	%
Non-GAAP core ROE		8.48	%		12.63	%		9.46	%		9.93	%

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Basic earnings per share (EPS)	$	0.50		$	0.77		$	2.35		$	2.34
Net securities losses, net of tax		—			—			0.01			0.02
Merger expenses, net of tax		0.08			—			0.08			—
Non-GAAP basic core EPS	$	0.58		$	0.77		$	2.44		$	2.36

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Diluted EPS	$	0.49		$	0.77		$	2.35		$	2.34
Net securities losses, net of tax		—			—			0.01			0.02
Merger expenses, net of tax		0.08			—			0.08			—
Non-GAAP diluted core EPS	$	0.57		$	0.77		$	2.44		$	2.36

(Dollars in Thousands, Except Share and Per Share Data, Unaudited)	Quarter Ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
Total shareholders' equity	$	205,231		$	203,694		$	197,087		$	193,517		$	191,556
Goodwill		(16,450	)		(16,450	)		(16,450	)		(16,450	)		(16,450	)
Intangibles		(107	)		(133	)		(158	)		(184	)		(210	)
Tangible shareholders' equity	$	188,674		$	187,111		$	180,479		$	176,883		$	174,896

Shares outstanding		7,556,743			7,554,488			7,541,474			7,525,372			7,508,994

Book value per share	$	27.16		$	26.96		$	26.13		$	25.72		$	25.51
Tangible book value per share (Non-GAAP)	$	24.97		$	24.77		$	23.93		$	23.50		$	23.29

FAQ

What was PWOD's net income for full-year 2024?

Penns Woods Bancorp reported net income of $17.7 million for the full year 2024, with basic and diluted earnings per share of $2.35.

How much did PWOD's deposits grow in 2024?

PWOD's deposits increased by $116.6 million to $1.7 billion at December 31, 2024 compared to December 31, 2023.

What is the impact of Northwest Bancshares acquisition on PWOD's Q4 2024 results?

The announced acquisition by Northwest Bancshares resulted in after-tax merger related expenses of $581,000 for PWOD in Q4 2024.

How did PWOD's loan portfolio perform in 2024?

PWOD's net loans increased by $36.9 million to $1.9 billion, with a focus on commercial loan growth and indirect auto lending.

What was PWOD's book value per share at the end of 2024?

PWOD's book value per share was $27.16 at December 31, 2024, compared to $25.51 at December 31, 2023.

Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

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Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

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What was PWOD's net income for full-year 2024?

How much did PWOD's deposits grow in 2024?

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