Penns Woods Bancorp, Inc. Reports Second Quarter 2021 Earnings

Rhea-AI Summary

Penns Woods Bancorp, Inc. reported a net income of $7.0 million for the six months ended June 30, 2021, with earnings per share of $1.00. This compares to $6.8 million in net income for the same period in 2020. The decrease in after-tax securities gains impacted the results, with a reduction from $156,000 to $111,000 for the quarter. Loan loss provisions decreased by $530,000 for the first half of 2021. Total assets rose to $1.9 billion, while deposits increased by $89.4 million, driven by PPP and stimulus funding.

Positive

• Net income increased to $7.0 million for the first half of 2021, compared to $6.8 million in 2020.
• Deposits rose by $89.4 million, totaling $1.6 billion, due to stimulus and PPP funding.
• Decrease in loan loss provisions by $530,000 for six months ended June 30, 2021.

Negative

• Net interest margin decreased to 2.78% and 2.83% for the three and six months ended June 30, 2021, down from 3.01% and 3.09% in 2020.
• Return on average assets declined to 0.75% for six months ended June 30, 2021, compared to 0.79% in 2020.

WILLIAMSPORT, Pa., July 21, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $7.0 million for the six months ended June 30, 2021, resulting in basic and diluted earnings per share of $1.00.

Highlights

• Net income, as reported under GAAP, for the three and six months ended June 30, 2021 was $3.6 million and $7.0 million, respectively, compared to $3.8 million and $6.8 million for the same period of 2020. Results for the three and six months ended June 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $45,000 (from a gain of $156,000 to a gain of $111,000) for the three month period and an increase in after-tax securities gains of $27,000 (from a gain of $178,000 to a gain of $205,000) for the six month period.
  
  
• The provision for loan losses decreased $295,000 and $530,000, respectfully, for the three and six months ended June 30, 2021, to $350,000 and $865,000 compared to $645,000 and $1.4 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 six months ended June 30, 2021 were $0.51 and $1.00. Basic and diluted earnings per share for the three and six months ended June 30, 2020 were $0.53 and $0.97.
  
  
• Return on average assets was 0.76% for three months ended June 30, 2021, compared to 0.85% for the corresponding period of 2020. Return on average assets was 0.75% for the six months ended June 30, 2021, compared to 0.79% for the corresponding period of 2020.
  
  
• Return on average equity was 8.70% for the three months ended June 30, 2021, compared to 9.59% for the corresponding period of 2020. Return on average equity was 8.69% for the six months ended June 30, 2021, compared to 8.75% for the corresponding period of 2020.
  

COVID-19 Activity

• Approximately one third of employees working remotely.
  
  
• As of June 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $7.9 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 June 2021.
  
  
• Total paycheck protection program loans originated to be held on balance sheet at June 30, 2021 total $21.6 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 $3.5 million for the three months ended June 30, 2021 compared to $3.6 million for the same period of 2020. Core earnings were $6.8 million for the six months ended June 30, 2021, compared to $6.7 million for the same period of 2020. Core earnings per share for the three months ended June 30, 2021 were $0.49 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 six months ended June 30, 2021 were $0.97 basic and diluted, compared to $0.95 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.74% and 8.43% for the three months ended June 30, 2021, compared to 0.81% and 9.19% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.73% and 8.44% for the six months ended June 30, 2021 compared to 0.77% and 8.52% 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 six months ended June 30, 2021 was 2.78% and 2.83%, compared to 3.01% and 3.09% for the corresponding period of 2020. The decrease in the net interest margin was driven by a decrease in the yield of the loan portfolio of 47 and 39 basis points ("bps"), while the investment portfolio yield declined 50 and 62 bps, respectively, 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 deposit liabilities decreased 54 and 56 bps as rates paid were decreased significantly during 2020 due to the economic impact of COVID-19 prolonging the low interest rate environment. These deposit rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $56.5 million to $1.9 billion at June 30, 2021 compared to June 30, 2020.  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 averse and seeking safety in a bank deposit. Net loans decreased $12.9 million to $1.3 billion at June 30, 2021 compared to June 30, 2020, 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 and continues to rebound in 2021. The investment portfolio increased $7.7 million from June 30, 2020 to June 30, 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 0.59% at June 30, 2021 from 0.82% at June 30, 2020 as non-performing loans have decreased to $7.9 million at June 30, 2021 from $11.1 million at June 30, 2020 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 $230,000 for the six months ended June 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at June 30, 2021 compared to 0.96% at June 30, 2020.

Deposits

Deposits increased $89.4 million to $1.6 billion at June 30, 2021 compared to June 30, 2020. Noninterest-bearing deposits increased $59.0 million to $477.3 million at June 30, 2021 compared to June 30, 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 have allowed for a decrease in short and long-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $7.3 million to $166.8 million at June 30, 2021 compared to June 30, 2020.  Accumulated other comprehensive loss of $1.4 million at June 30, 2021 increased from a loss of $1.0 million at June 30, 2020 primarily as a result of a change in the net excess of the projected benefit obligations under the defined benefit plan over the fair value of the plan’s assets, 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 $23.63 at June 30, 2021 compared to $22.66 at June 30, 2020, and an equity to asset ratio of 8.80% at June 30, 2021 compared to 8.68% at June 30, 2020. Dividends declared for the six months ended June 30, 2021 and 2020 were $0.64 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, Union, and Blair Counties, and Luzerne Bank, which operates eight 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, 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)

		June 30,
(In Thousands, Except Share Data)		2021				2020				% Change
ASSETS:
Noninterest-bearing balances		$	27,731			$	26,932			2.97	%
Interest-bearing balances in other financial institutions		199,389				188,242				5.92	%
Federal funds sold		40,000				—				n/a
Total cash and cash equivalents		267,120				215,174				24.14	%
Investment debt securities, available for sale, at fair value		171,783				164,369				4.51	%
Investment equity securities, at fair value		1,269				1,291				(1.70	)%
Investment securities, trading		43				37				16.22	%
Restricted investment in bank stock, at fair value		15,120				14,849				1.83	%
Loans held for sale		4,927				5,146				(4.26	)%
Loans		1,337,947				1,349,347				(0.84	)%
Allowance for loan losses		(14,438		)		(12,977		)		11.26	%
Loans, net		1,323,509				1,336,370				(0.96	)%
Premises and equipment, net		34,629				32,873				5.34	%
Accrued interest receivable		8,363				8,068				3.66	%
Bank-owned life insurance		34,005				29,368				15.79	%
Investment in limited partnerships		4,795				1,596				200.44	%
Goodwill		17,104				17,104				—	%
Intangibles		568				777				(26.90	)%
Operating lease right of use asset		2,946				3,231				(8.82	)%
Deferred tax asset		3,624				3,284				10.35	%
Other assets		5,065				4,827				4.93	%
TOTAL ASSETS		$	1,894,870			$	1,838,364			3.07	%
LIABILITIES:
Interest-bearing deposits		$	1,086,352			$	1,055,981			2.88	%
Noninterest-bearing deposits		477,344				418,324				14.11	%
Total deposits		1,563,696				1,474,305				6.06	%
Short-term borrowings		7,520				15,133				(50.31	)%
Long-term borrowings		141,051				171,885				(17.94	)%
Accrued interest payable		961				1,530				(37.19	)%
Operating lease liability		2,992				3,263				(8.31	)%
Other liabilities		11,815				12,640				(6.53	)%
TOTAL LIABILITIES		1,728,035				1,678,756				2.94	%
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; 7,541,627 and 7,522,573 shares issued; 7,061,402 and 7,042,348 shares outstanding		41,897				41,792				0.25	%
Additional paid-in capital		53,205				51,956				2.40	%
Retained earnings		85,281				78,910				8.07	%
Accumulated other comprehensive gain (loss):
Net unrealized gain on available for sale securities		4,085				4,194				(2.60	)%
Defined benefit plan		(5,523		)		(5,159		)		(7.06	)%
Treasury stock at cost, 480,225		(12,115		)		(12,115		)		—	%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY		166,830				159,578				4.54	%
Non-controlling interest		5				30				(83.33	)%
TOTAL SHAREHOLDERS' EQUITY		166,835				159,608				4.53	%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,894,870			$	1,838,364			3.07	%

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

		Three Months Ended June 30,											Six Months Ended June 30,
(In Thousands, Except Per Share Data)		2021				2020				% Change			2021				2020				% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees		$	13,099			$	14,666			(10.68	)%		$	26,444			$	29,323			(9.82	)%
Investment securities:
Taxable		838				1,023				(18.08	)%		1,657				2,033				(18.49	)%
Tax-exempt		164				169				(2.96	)%		335				314				6.69	%
Dividend and other interest income		305				186				63.98	%		565				535				5.61	%
TOTAL INTEREST AND DIVIDEND INCOME		14,406				16,044				(10.21	)%		29,001				32,205				(9.95	)%
INTEREST EXPENSE:
Deposits		1,489				2,802				(46.86	)%		3,173				5,837				(45.64	)%
Short-term borrowings		2				7				(71.43	)%		4				29				(86.21	)%
Long-term borrowings		820				985				(16.75	)%		1,659				1,928				(13.95	)%
TOTAL INTEREST EXPENSE		2,311				3,794				(39.09	)%		4,836				7,794				(37.95	)%
NET INTEREST INCOME		12,095				12,250				(1.27	)%		24,165				24,411				(1.01	)%
PROVISION FOR LOAN LOSSES		350				645				(45.74	)%		865				1,395				(37.99	)%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		11,745				11,605				1.21	%		23,300				23,016				1.23	%
NON-INTEREST INCOME:
Service charges		379				312				21.47	%		762				861				(11.50	)%
Debt securities gains, available for sale		137				186				(26.34	)%		275				207				32.85	%
Equity securities gains (losses)		4				10				(60.00	%		(19		)		30				(163.33	)%
Securities (losses) gains, trading		(1		)		—				n/a			3				(14		)		121.43	%
Bank-owned life insurance		162				144				12.50	%		335				336				(0.30	)%
Gain on sale of loans		670				1,028				(34.82	)%		1,578				1,472				7.20	%
Insurance commissions		150				92				63.04	%		307				219				40.18	%
Brokerage commissions		207				186				11.29	%		426				555				(23.24	)%
Debit card income		398				310				28.39	%		778				584				33.22	%
Other		803				353				127.48	%		1,078				808				33.42	%
TOTAL NON-INTEREST INCOME		2,909				2,621				10.99	%		5,523				5,058				9.19	%
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,672				5,230				8.45	%		11,270				10,897				3.42	%
Occupancy		717				626				14.54	%		1,693				1,328				27.48	%
Furniture and equipment		971				828				17.27	%		1,780				1,688				5.45	%
Software amortization		208				236				(11.86	)%		406				486				(16.46	)%
Pennsylvania shares tax		372				323				15.17	%		724				608				19.08	%
Professional fees		684				658				3.95	%		1,267				1,280				(1.02	)%
Federal Deposit Insurance Corporation deposit insurance		264				185				42.70	%		485				379				27.97	%
Marketing		140				56				150.00	%		203				109				86.24	%
Intangible amortization		50				59				(15.25	)%		103				121				(14.88	)%
Other		1,170				1,410				(17.02	)%		2,268				2,825				(19.72	)%
TOTAL NON-INTEREST EXPENSE		10,248				9,611				6.63	%		20,199				19,721				2.42	%
INCOME BEFORE INCOME TAX PROVISION		4,406				4,615				(4.53	)%		8,624				8,353				3.24	%
INCOME TAX PROVISION		813				851				(4.47	)%		1,584				1,512				4.76	%
NET INCOME		$	3,593			$	3,764			(4.54	)%		$	7,040			$	6,841			2.91	%
Earnings attributable to noncontrolling interest		5				4				25.00	%		11				8				37.50	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'		$	3,588			$	3,760			(4.57	)%		$	7,029			$	6,833			2.87	%
EARNINGS PER SHARE - BASIC		$	0.51			$	0.53			(3.77	)%		$	1.00			$	0.97			3.09	%
EARNINGS PER SHARE - DILUTED		$	0.51			$	0.53			(3.77	)%		$	1.00			$	0.97			3.09	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,059,667				7,041,629				0.26	%		7,057,404				7,041,185				0.23	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,059,667				7,041,629				0.26	%		7,057,404				7,041,185				0.23	%
DIVIDENDS DECLARED PER SHARE		$	0.32			$	0.32			—	%		$	0.64			$	0.64			—	%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

		Three Months Ended
		June 30, 2021											June 30, 2020
(Dollars in Thousands)		Average  Balance				Interest				Average  Rate			Average  Balance				Interest				Average  Rate
ASSETS:
Tax-exempt loans		$	46,926			$	334			2.85	%		$	44,916			$	348			3.12	%
All other loans		1,285,853				12,835				4.00	%		1,294,745				14,391				4.47	%
Total loans		1,332,779				13,169				3.96	%		1,339,661				14,739				4.43	%
Federal funds sold		25,538				45				0.71	%		—				—				—	%
Taxable securities		148,415				1,051				2.87	%		147,352				1,193				3.29	%
Tax-exempt securities		36,469				208				2.31	%		28,280				213				3.06	%
Total securities		184,884				1,259				2.76	%		175,632				1,406				3.26	%
Interest-bearing deposits		218,868				48				0.09	%		144,948				16				0.04	%
Total interest-earning assets		1,762,069				14,521				3.31	%		1,660,241				16,161				3.92	%
Other assets		128,402											116,750
TOTAL ASSETS		$	1,890,471										$	1,776,991
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	225,625			28				0.05	%		$	190,243			67				0.14	%
Super Now deposits		285,672				208				0.29	%		251,691				409				0.65	%
Money market deposits		309,749				256				0.33	%		229,362				418				0.73	%
Time deposits		256,345				997				1.56	%		362,545				1,908				2.12	%
Total interest-bearing deposits		1,077,391				1,489				0.55	%		1,033,841				2,802				1.09	%
Short-term borrowings		7,047				2				0.11	%		11,174				7				0.83	%
Long-term borrowings		141,076				820				2.33	%		171,895				985				2.21	%
Total borrowings		148,123				822				2.23	%		183,069				992				2.12	%
Total interest-bearing liabilities		1,225,514				2,311				0.76	%		1,216,910				3,794				1.24	%
Demand deposits		482,513											384,591
Other liabilities		17,384											18,583
Shareholders’ equity		165,060											156,907
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,890,471										$	1,776,991
Interest rate spread										2.55	%										2.68	%
Net interest income/margin						$	12,210			2.78	%						$	12,367			3.01	%

		Three Months Ended June 30,
		2021				2020
Total interest income		$	14,406			$	16,044
Total interest expense		2,311				3,794
Net interest income		12,095				12,250
Tax equivalent adjustment		115				117
Net interest income (fully taxable equivalent)		$	12,210			$	12,367

		Six Months Ended
		June 30, 2021											June 30, 2020
(Dollars in Thousands)		Average  Balance				Interest				Average  Rate			Average  Balance				Interest				Average  Rate
ASSETS:
Tax-exempt loans		$	46,177			$	684			2.99	%		$	48,346			$	752			3.13	%
All other loans		1,289,660				25,904				4.05	%		1,299,893				28,729				4.44	%
Total loans		1,335,837				26,588				4.01	%		1,348,239				29,481				4.40	%
Federal funds sold		12,840				45				0.71	%		—				—				—	%
Taxable securities		146,740				2,083				2.88	%		145,070				2,466				3.46	%
Tax-exempt securities		36,420				424				2.36	%		26,027				397				3.10	%
Total securities		183,160				2,507				2.78	%		171,097				2,863				3.40	%
Interest-bearing deposits		207,495				94				0.09	%		85,832				102				0.24	%
Total interest-earning assets		1,739,332				29,234				3.39	%		1,605,168				32,446				4.07	%
Other assets		126,418											114,085
TOTAL ASSETS		$	1,865,750										$	1,719,253
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	220,161			72				0.07	%		$	184,042			158				0.17	%
Super Now deposits		287,444				475				0.33	%		235,758				833				0.71	%
Money market deposits		307,885				523				0.34	%		220,035				895				0.82	%
Time deposits		255,408				2,103				1.66	%		370,902				3,951				2.14	%
Total interest-bearing deposits		1,070,898				3,173				0.60	%		1,010,737				5,837				1.16	%
Short-term borrowings		6,368				4				0.13	%		11,011				29				0.53	%
Long-term borrowings		141,279				1,659				2.37	%		166,024				1,928				2.34	%
Total borrowings		147,647				1,663				2.27	%		177,035				1,957				2.22	%
Total interest-bearing liabilities		1,218,545				4,836				0.80	%		1,187,772				7,794				1.32	%
Demand deposits		464,237											355,704
Other liabilities		21,227											19,551
Shareholders’ equity		161,741											156,226
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,865,750										$	1,719,253
Interest rate spread										2.59	%										2.75	%
Net interest income/margin						$	24,398			2.83	%						$	24,652			3.09	%

		Six Months Ended June 30,
		2021				2020
Total interest income		$	29,001			$	32,205
Total interest expense		4,836				7,794
Net interest income		24,165				24,411
Tax equivalent adjustment		233				241
Net interest income (fully taxable equivalent)		$	24,398			$	24,652

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Operating Data
Net income		$	3,588			$	3,441			$	3,901			$	4,472			$	3,760
Net interest income		12,095				12,070				11,967				11,845				12,250
Provision for loan losses		350				515				585				645				645
Net security gains		140				119				374				1,011				196
Non-interest income, excluding net security gains		2,769				2,495				2,701				3,024				2,423
Non-interest expense		10,248				9,951				9,640				9,707				9,611
Performance Statistics
Net interest margin		2.78		%		2.88		%		2.81		%		2.76		%		3.01		%
Annualized return on average assets		0.76		%		0.75		%		0.85		%		0.97		%		0.85		%
Annualized return on average equity		8.70		%		8.59		%		9.55		%		11.05		%		9.60		%
Annualized net loan charge-offs to average loans		0.03		%		0.04		%		0.06		%		0.06		%		0.05		%
Net charge-offs		114				116				211				193				168
Efficiency ratio		68.61		%		67.96		%		65.36		%		64.89		%		65.10		%
Per Share Data
Basic earnings per share		$	0.51			$	0.49			$	0.55			$	0.63			$	0.53
Diluted earnings per share		0.51				0.49				0.55				0.63				0.53
Dividend declared per share		0.32				0.32				0.32				0.32				0.32
Book value		23.63				23.25				23.27				23.05				22.66
Common stock price:
High		26.51				27.78				27.30				22.83				27.75
Low		23.03				20.55				19.61				19.61				20.01
Close		23.82				24.09				26.01				19.85				22.71
Weighted average common shares:
Basic		7,060				7,055				7,050				7,045				7,042
Fully Diluted		7,060				7,055				7,050				7,045				7,042
End-of-period common shares:
Issued		7,542				7,537				7,533				7,528				7,523
Treasury		480				480				480				480				480

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Financial Condition Data:
General
Total assets		$	1,894,870			$	1,896,192			$	1,834,643			$	1,840,779			$	1,838,364
Loans, net		1,323,509				1,321,697				1,330,524				1,335,711				1,336,370
Goodwill		17,104				17,104				17,104				17,104				17,104
Intangibles		568				618				671				724				777
Total deposits		1,563,696				1,564,364				1,494,443				1,491,810				1,474,305
Noninterest-bearing		477,344				478,916				449,357				434,248				418,324
Savings		226,573				224,890				209,924				202,781				195,964
NOW		296,450				290,355				287,775				268,463				268,348
Money Market		301,405				324,207				283,742				274,480				247,753
Time Deposits		261,924				245,996				263,645				311,838				343,915
Total interest-bearing deposits		1,086,352				1,085,448				1,045,086				1,057,562				1,055,980
Core deposits*		1,301,772				1,318,368				1,230,798				1,179,972				1,130,389
Shareholders’ equity		166,830				164,059				164,142				162,422				159,578
Asset Quality
Non-performing loans		$	7,931			$	9,272			$	10,334			$	10,553			$	11,097
Non-performing loans to total assets		0.42		%		0.49		%		0.56		%		0.57		%		0.60		%
Allowance for loan losses		14,438				14,202				13,803				13,429				12,977
Allowance for loan losses to total loans		1.08		%		1.06		%		1.03		%		1.00		%		0.96		%
Allowance for loan losses to non-performing loans		182.05		%		153.17		%		133.57		%		127.25		%		116.94		%
Non-performing loans to total loans		0.59		%		0.69		%		0.77		%		0.78		%		0.82		%
Capitalization
Shareholders’ equity to total assets		8.80		%		8.65		%		8.95		%		8.82		%		8.68		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

		Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)		2021				2020				2021				2020
GAAP net income		$	3,588			$	3,760			$	7,029			$	6,833
Less: net securities gains, net of tax			111				156				205				178
Non-GAAP core earnings		$	3,477			$	3,604			$	6,824			$	6,655
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Return on average assets (ROA)		0.76		%		0.85		%		0.75		%		0.79		%
Less: net securities gains, net of tax		0.02		%		0.04		%		0.02		%		0.02		%
Non-GAAP core ROA		0.74		%		0.81		%		0.73		%		0.77		%
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Return on average equity (ROE)		8.70		%		9.59		%		8.69		%		8.75		%
Less: net securities gains, net of tax		0.27		%		0.40		%		0.25		%		0.23		%
Non-GAAP core ROE		8.43		%		9.19		%		8.44		%		8.52		%
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Basic earnings per share (EPS)		$	0.51			$	0.53			$	1.00			$	0.97
Less: net securities gains, net of tax		0.02				0.02				0.03				0.02
Non-GAAP basic core EPS		$	0.49			$	0.51			$	0.97			$	0.95
		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
Diluted EPS		$	0.51			$	0.53			$	1.00			$	0.97
Less: net securities gains, net of tax		0.02				0.02				0.03				0.02
Non-GAAP diluted core EPS		$	0.49			$	0.51			$	0.97			$	0.95

COVID-19 Loan Deferrals as of June 30, 2021

(In Thousands)		Amount
Commercial, financial, and agricultural		$	140
Real estate mortgage:
Residential		892
Commercial		6,890
Consumer automobile loans		—
Other consumer installment loans		9
Total loan deferrals		$	7,931

FAQ

What are the earnings per share for PWOD for the second quarter of 2021?

The earnings per share for PWOD for the second quarter of 2021 are $0.51.

How did Penns Woods Bancorp's net income change in 2021?

Net income for the first half of 2021 was $7.0 million, an increase from $6.8 million in the same period in 2020.

What caused the decrease in net interest margin for PWOD?

The decrease in net interest margin was primarily due to a reduction in the yield on both the loan and investment portfolios.

How much did total assets increase for PWOD by June 30, 2021?

Total assets increased by $56.5 million to $1.9 billion by June 30, 2021.

What was the ratio of non-performing loans to total loans for PWOD?

The ratio of non-performing loans to total loans decreased to 0.59% at June 30, 2021.