Penns Woods Bancorp, Inc. Reports Third Quarter 2021 Earnings

Rhea-AI Summary

Penns Woods Bancorp (NASDAQ: PWOD) reported a net income of $11.2 million for the nine months ending September 30, 2021, with EPS of $1.58. This reflects a slight decrease from $11.3 million and $1.61 in the same period of 2020. Revenue was impacted by a fall in after-tax securities gains, decreasing from $975,000 to $236,000. Loan loss provisions decreased to $940,000 compared to $2.0 million in 2020. Total assets increased by $70 million to $1.9 billion. Non-performing loans decreased to 0.58% of total loans.

Positive

• Core earnings for nine months increased to $10.9 million, up from $10.3 million in 2020.
• Increase in total assets by $70 million to $1.9 billion.
• Deposits rose by $101.2 million to $1.6 billion.
• Core return on average assets improved to 0.77%.

Negative

• Net income decreased slightly from $11.3 million to $11.2 million year-over-year.
• After-tax securities gains dropped significantly, affecting overall revenue.
• Return on average assets declined to 0.79% for nine months ended September 30, 2021 from 0.85% in 2020.

WILLIAMSPORT, Pa., Oct. 22, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $11.2 million for the nine months ended September 30, 2021, resulting in basic and diluted earnings per share of $1.58.

Highlights

• Net income, as reported under GAAP, for the three and nine months ended September 30, 2021 was $4.1 million and $11.2 million, respectively, compared to $4.5 million and $11.3 million for the same periods of 2020. Results for the three and nine months ended September 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $767,000 (from a gain of $799,000 to a gain of $32,000) for the three month period and a decrease in after-tax securities gains of $739,000 (from a gain of $975,000 to a gain of $236,000) for the nine month period.
  
  
• The provision for loan losses decreased $570,000 and $1.1 million, respectively, for the three and nine months ended September 30, 2021, to $75,000 and $940,000 compared to $645,000 and $2.0 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 nine months ended September 30, 2021 were $0.58 and $1.58, respectively. Basic and diluted earnings per share for the three and nine months ended September 30, 2020 were $0.63 and $1.61, respectively.
  
  
• Return on average assets was 0.86% for three months ended September 30, 2021, compared to 0.97% for the corresponding period of 2020. Return on average assets was 0.79% for the nine months ended September 30, 2021, compared to 0.85% for the corresponding period of 2020.
  
  
• Return on average equity was 9.85% for the three months ended September 30, 2021, compared to 11.05% for the corresponding period of 2020. Return on average equity was 9.17% for the nine months ended September 30, 2021, compared to 9.57% for the corresponding period of 2020.
  

COVID-19 Activity

• Approximately one third of employees working remotely.
  
  
• As of September 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $1.3 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 September 2021.
  
  
• Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $10.6 million remaining on the balance sheet at September 30, 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 $4.1 million for the three months ended September 30, 2021 compared to $3.7 million for the same period of 2020. Core earnings were $10.9 million for the nine months ended September 30, 2021, compared to $10.3 million for the same period of 2020. Core earnings per share for the three months ended September 30, 2021 were $0.58 basic and diluted, compared to $0.52 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the nine months ended September 30, 2021 were $1.55 basic and diluted, compared to $1.47 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.86% and 9.78% for the three months ended September 30, 2021, compared to 0.79% and 9.08% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.77% and 8.98% for the nine months ended September 30, 2021 compared to 0.78% and 8.75% 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 nine months ended September 30, 2021 was 2.85% and 2.84%, compared to 2.76% and 2.97% for the corresponding period of 2020. The increase in the net interest margin for the nine month period was driven by a decrease in the yield of the loan portfolio of 19 and 32 basis points ("bps"), while the investment portfolio yield declined 51 and 59 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 and have increased in average balance as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 48 and 53 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 $70.0 million to $1.9 billion at September 30, 2021 compared to September 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 $3.0 million to $1.3 billion at September 30, 2021 compared to September 30, 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 continues to rebound in 2021. The investment portfolio increased $16.7 million from September 30, 2020 to September 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 0.58% at September 30, 2021 from 0.78% at September 30, 2020 as non-performing loans have decreased to $7.8 million at September 30, 2021 from $10.6 million at September 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 $186,000 for the nine months ended September 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at September 30, 2021 compared to 1.00% at September 30, 2020.

Deposits

Deposits increased $101.2 million to $1.6 billion at September 30, 2021 compared to September 30, 2020. Noninterest-bearing deposits increased $47.6 million to $481.9 million at September 30, 2021 compared to September 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 has allowed for a decrease in short and long-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $6.1 million to $168.5 million at September 30, 2021 compared to September 30, 2020.  Accumulated other comprehensive loss of $2.0 million at September 30, 2021 increased from a loss of $678,000 at September 30, 2020 primarily as a result of a decrease of $936,000 in the net unrealized gain on available for sale securities. The current level of shareholders’ equity equates to a book value per share of $23.84 at September 30, 2021 compared to $23.05 at September 30, 2020, and an equity to asset ratio of 8.82% at September 30, 2021 and September 30, 2020. Dividends declared for the nine months ended September 30, 2021 and 2020 were $0.96 per share..

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, 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)

		September 30,
(In Thousands, Except Share Data)		2021					2020					% Change
ASSETS:
Noninterest-bearing balances		$	35,523				$	34,987				1.53		%
Interest-bearing balances in other financial institutions		206,124					191,285					7.76		%
Federal funds sold		40,000					—					n/a
Total cash and cash equivalents		281,647					226,272					24.47		%
Investment debt securities, available for sale, at fair value		166,760					149,675					11.41		%
Investment equity securities, at fair value		1,263					1,291					(2.17	)	%
Investment securities, trading		40					35					14.29		%
Restricted investment in bank stock, at fair value		14,649					15,006					(2.38	)	%
Loans held for sale		3,246					6,647					(51.17	)	%
Loans		1,347,225					1,349,140					(0.14	)	%
Allowance for loan losses		(14,557		)			(13,429		)			8.40		%
Loans, net		1,332,668					1,335,711					(0.23	)	%
Premises and equipment, net		34,434					32,886					4.71		%
Accrued interest receivable		8,529					8,540					(0.13	)	%
Bank-owned life insurance		33,836					33,474					1.08		%
Investment in limited partnerships		5,014					2,524					98.65		%
Goodwill		17,104					17,104					—		%
Intangibles		524					724					(27.62	)	%
Operating lease right of use asset		2,899					3,184					(8.95	)	%
Deferred tax asset		4,049					3,409					18.77		%
Other assets		4,129					4,297					(3.91	)	%
TOTAL ASSETS		$	1,910,791				$	1,840,779				3.80		%
LIABILITIES:
Interest-bearing deposits		$	1,111,144				$	1,057,562				5.07		%
Noninterest-bearing deposits		481,875					434,248					10.97		%
Total deposits		1,593,019					1,491,810					6.78		%
Short-term borrowings		9,404					15,009					(37.34	)	%
Long-term borrowings		126,007					153,534					(17.93	)	%
Accrued interest payable		828					1,491					(44.47	)	%
Operating lease liability		2,947					3,219					(8.45	)	%
Other liabilities		10,105					13,287					(23.95	)	%
TOTAL LIABILITIES		1,742,310					1,678,350					3.81		%
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; 7,545,922 and 7,527,605 shares issued; 7,065,697 and 7,047,380 shares outstanding		41,921					41,820					0.24		%
Additional paid-in capital		53,508					52,268					2.37		%
Retained earnings		87,146					81,127					7.42		%
Accumulated other comprehensive gain (loss):
Net unrealized gain on available for sale securities		3,504					4,440					(21.08	)	%
Defined benefit plan		(5,486		)			(5,118		)			7.19		%
Treasury stock at cost, 480,225		(12,115		)			(12,115		)			—		%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY		168,478					162,422					3.73		%
Non-controlling interest		3					7					(57.14	)	%
TOTAL SHAREHOLDERS' EQUITY		168,481					162,429					3.73		%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,910,791				$	1,840,779				3.80		%

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

		Three Months Ended September 30,														Nine Months Ended September 30,
(In Thousands, Except Per Share Data)		2021					2020					% Change				2021					2020					% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees		$	13,382				$	14,080				(4.96	)	%		$	39,826				$	43,403				(8.24	)	%
Investment securities:
Taxable		834					925					(9.84	)	%		2,491					2,958					(15.79	)	%
Tax-exempt		160					170					(5.88	)	%		495					484					2.27		%
Dividend and other interest income		338					212					59.43		%		903					747					20.88		%
TOTAL INTEREST AND DIVIDEND INCOME		14,714					15,387					(4.37	)	%		43,715					47,592					(8.15	)	%
INTEREST EXPENSE:
Deposits		1,308					2,569					(49.09	)	%		4,481					8,406					(46.69	)	%
Short-term borrowings		3					8					(62.50	)	%		7					37					(81.08	)	%
Long-term borrowings		771					965					(20.10	)	%		2,430					2,893					(16.00	)	%
TOTAL INTEREST EXPENSE		2,082					3,542					(41.22	)	%		6,918					11,336					(38.97	)	%
NET INTEREST INCOME		12,632					11,845					6.64		%		36,797					36,256					1.49		%
PROVISION FOR LOAN LOSSES		75					645					(88.37	)	%		940					2,040					(53.92	)	%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		12,557					11,200					12.12		%		35,857					34,216					4.80		%
NON-INTEREST INCOME:
Service charges		456					388					17.53		%		1,218					1,249					(2.48	)	%
Debt securities gains, available for sale		48					1,013					(95.26	)	%		323					1,220					(73.52	)	%
Equity securities (losses) gains		(6		)			—					n/a				(25		)			30					(183.33	)	%
Securities (losses) gains, trading		(2		)			(2		)			—		%		1					(16		)			106.25		%
Bank-owned life insurance		279					156					78.85		%		614					492					24.80		%
Gain on sale of loans		456					1,449					(68.53	)	%	.	2,034					2,921					(30.37	)	%
Insurance commissions		129					101					27.72		%		436					320					36.25		%
Brokerage commissions		237					224					5.80		%		663					779					(14.89	)	%
Debit card income		388					352					10.23		%		1,166					936					24.57		%
Other		966					354					172.88		%		2,044					1,162					75.90		%
TOTAL NON-INTEREST INCOME		2,951					4,035					(26.86	)	%		8,474					9,093					(6.81	)	%
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,837					5,465					6.81		%		17,107					16,362					4.55		%
Occupancy		745					599					24.37		%		2,438					1,927					26.52		%
Furniture and equipment		883					837					5.50		%		2,663					2,525					5.47		%
Software amortization		226					257					(12.06	)	%		632					743					(14.94	)	%
Pennsylvania shares tax		373					340					9.71		%		1,097					948					15.72		%
Professional fees		615					608					1.15		%		1,882					1,888					(0.32	)	%
Federal Deposit Insurance Corporation deposit insurance		220					271					(18.82	)	%		705					650					8.46		%
Marketing		231					61					278.69		%		434					170					155.29		%
Intangible amortization		44					53					(16.98	)	%		147					174					(15.52	)	%
Other		1,273					1,216					4.69		%		3,541					4,041					(12.37	)	%
TOTAL NON-INTEREST EXPENSE		10,447					9,707					7.62		%		30,646					29,428					4.14		%
INCOME BEFORE INCOME TAX PROVISION		5,061					5,528					(8.45	)	%		13,685					13,881					(1.41	)	%
INCOME TAX PROVISION		932					1,051					(11.32	)	%		2,516					2,563					(1.83	)	%
NET INCOME		$	4,129				$	4,477				(7.77	)	%		$	11,169				$	11,318				(1.32	)	%
Earnings attributable to noncontrolling interest		4					5					(20.00	)	%		15					13					15.38		%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'		$	4,125				$	4,472				(7.76	)	%		$	11,154				$	11,305				(1.34	)	%
EARNINGS PER SHARE - BASIC		$	0.58				$	0.63				(7.94	)	%		$	1.58				$	1.61				(1.86	)	%
EARNINGS PER SHARE - DILUTED		$	0.58				$	0.63				(7.94	)	%		$	1.58				$	1.61				(1.86	)	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,063,994					7,045,336					0.26		%		7,059,625					7,042,578					0.24		%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,063,994					7,045,336					0.26		%		7,059,625					7,042,578					0.24		%
DIVIDENDS DECLARED PER SHARE		$	0.32				$	0.32				—		%		$	0.96				$	0.96				—		%

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 

		Three Months Ended
		September 30, 2021											September 30, 2020
(Dollars in Thousands)		Average  Balance				Interest				Average  Rate			Average  Balance				Interest				Average  Rate
ASSETS:
Tax-exempt loans		$	46,193			$	307			2.64	%		$	42,047			$	386			3.65	%
All other loans		1,296,790				13,139				4.02	%		1,313,474				13,775				4.17	%
Total loans		1,342,983				13,446				3.97	%		1,355,521				14,161				4.16	%
Federal funds sold		40,000				72				0.71	%		—				—				—	%
Taxable securities		150,308				1,022				2.76	%		140,695				1,116				3.23	%
Tax-exempt securities		37,069				203				2.22	%		30,587				216				2.87	%
Total securities		187,377				1,225				2.65	%		171,282				1,332				3.16	%
Interest-bearing deposits		205,715				78				0.15	%		203,817				21				0.04	%
Total interest-earning assets		1,776,075				14,821				3.32	%		1,730,620				15,514				3.57	%
Other assets		132,820											121,901
TOTAL ASSETS		$	1,908,895										$	1,852,521
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	228,255			22				0.04	%		$	199,420			51				0.10	%
Super Now deposits		308,591				219				0.28	%		273,190				489				0.71	%
Money market deposits		306,177				238				0.31	%		263,926				330				0.50	%
Time deposits		248,649				829				1.32	%		329,190				1,699				2.05	%
Total interest-bearing deposits		1,091,672				1,308				0.48	%		1,065,726				2,569				0.96	%
Short-term borrowings		8,696				3				0.14	%		17,517				8				0.18	%
Long-term borrowings		133,536				771				2.29	%		165,064				965				2.33	%
Total borrowings		142,232				774				2.16	%		182,581				973				2.12	%
Total interest-bearing liabilities		1,233,904				2,082				0.67	%		1,248,307				3,542				1.13	%
Demand deposits		490,500											424,753
Other liabilities		17,027											17,644
Shareholders’ equity		167,464											161,817
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,908,895										$	1,852,521
Interest rate spread										2.65	%										2.44	%
Net interest income/margin						$	12,739			2.85	%						$	11,972			2.76	%

		Three Months Ended September 30,
		2021				2020
Total interest income		$	14,714			$	15,387
Total interest expense		2,082				3,542
Net interest income		12,632				11,845
Tax equivalent adjustment		107				127
Net interest income (fully taxable equivalent)		$	12,739			$	11,972

		Nine Months Ended
		September 30, 2021											September 30, 2020
(Dollars in Thousands)		Average  Balance				Interest				Average  Rate			Average  Balance				Interest				Average  Rate
ASSETS:
Tax-exempt loans		$	46,217			$	991			2.87	%		$	46,476			$	1,138			3.27	%
All other loans		1,292,028				39,043				4.04	%		1,304,207				42,504				4.35	%
Total loans		1,338,245				40,034				4.00	%		1,350,683				43,642				4.32	%
Federal funds sold		21,993				117				0.71	%		—				—				—	%
Taxable securities		147,942				3,105				2.84	%		143,601				3,582				3.38	%
Tax-exempt securities		36,638				627				2.31	%		27,558				613				3.02	%
Total securities		184,580				3,732				2.73	%		171,159				4,195				3.32	%
Interest-bearing deposits		206,895				172				0.11	%		125,447				123				0.13	%
Total interest-earning assets		1,751,713				44,055				3.37	%		1,647,289				47,960				3.89	%
Other assets		128,567											116,868
TOTAL ASSETS		$	1,880,280										$	1,764,157
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings		$	222,889			94				0.06	%		$	189,205			209				0.15	%
Super Now deposits		294,570				694				0.31	%		248,327				1,322				0.71	%
Money market deposits		307,309				761				0.33	%		234,772				1,225				0.70	%
Time deposits		253,130				2,932				1.55	%		356,897				5,650				2.11	%
Total interest-bearing deposits		1,077,898				4,481				0.56	%		1,029,201				8,406				1.09	%
Short-term borrowings		7,152				7				0.13	%		13,195				37				0.37	%
Long-term borrowings		138,669				2,430				2.34	%		165,702				2,893				2.33	%
Total borrowings		145,821				2,437				2.23	%		178,897				2,930				2.19	%
Total interest-bearing liabilities		1,223,719				6,918				0.76	%		1,208,098				11,336				1.25	%
Demand deposits		473,088											378,889
Other liabilities		21,327											19,682
Shareholders’ equity		162,146											157,488
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,880,280										$	1,764,157
Interest rate spread										2.61	%										2.64	%
Net interest income/margin						$	37,137			2.84	%						$	36,624			2.97	%

		Nine Months Ended September 30,
		2021				2020
Total interest income		$	43,715			$	47,592
Total interest expense		6,918				11,336
Net interest income		36,797				36,256
Tax equivalent adjustment		340				368
Net interest income (fully taxable equivalent)		$	37,137			$	36,624

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		9/30/2021					6/30/2021				3/31/2021				12/31/2020				9/30/2020
Operating Data
Net income		$	4,125				$	3,588			$	3,441			$	3,901			$	4,472
Net interest income		12,632					12,095				12,070				11,967				11,845
Provision for loan losses		75					350				515				585				645
Net security gains		40					140				119				374				1,011
Non-interest income, excluding net security gains		2,911					2,769				2,495				2,701				3,024
Non-interest expense		10,447					10,248				9,951				9,640				9,707
Performance Statistics
Net interest margin		2.85			%		2.78		%		2.88		%		2.81		%		2.76		%
Annualized return on average assets		0.86			%		0.76		%		0.75		%		0.85		%		0.97		%
Annualized return on average equity		9.85			%		8.70		%		8.59		%		9.55		%		11.05		%
Annualized net loan charge-offs (recoveries) to average loans		(0.01		)	%		0.03		%		0.04		%		0.06		%		0.06		%
Net charge-offs (recoveries)		(44		)			114				116				211				193
Efficiency ratio		66.93			%		68.61		%		67.96		%		65.36		%		64.89		%
Per Share Data
Basic earnings per share		$	0.58				$	0.51			$	0.49			$	0.55			$	0.63
Diluted earnings per share		0.58					0.51				0.49				0.55				0.63
Dividend declared per share		0.32					0.32				0.32				0.32				0.32
Book value		23.84					23.63				23.25				23.27				23.05
Common stock price:			21.12					21.12
High		24.42					26.51				27.78				27.30				22.83
Low		22.78					23.03				20.55				19.61				19.61
Close		23.92					23.82				24.09				26.01				19.85
Weighted average common shares:
Basic		7,064					7,060				7,055				7,050				7,045
Fully Diluted		7,064					7,060				7,055				7,050				7,045
End-of-period common shares:
Issued		7,546					7,542				7,537				7,533				7,528
Treasury		480					480				480				480				480

(Dollars in Thousands, Except Per Share Data)		Quarter Ended
		9/30/2021				6/30/2021				3/31/2021				12/31/2020				9/30/2020
Financial Condition Data:
General
Total assets		$	1,910,791			$	1,894,870			$	1,896,192			$	1,834,643			$	1,840,779
Loans, net		1,332,668				1,323,509				1,321,697				1,330,524				1,335,711
Goodwill		17,104				17,104				17,104				17,104				17,104
Intangibles		524				568				618				671				724
Total deposits		1,593,019				1,563,696				1,564,364				1,494,443				1,491,810
Noninterest-bearing		481,875				477,344				478,916				449,357				434,248
Savings		231,189				226,573				224,890				209,924				202,781
NOW		340,441				296,450				290,355				287,775				268,463
Money Market		305,156				301,405				324,207				283,742				274,480
Time Deposits		234,358				261,924				245,996				263,645				311,838
Total interest-bearing deposits		1,111,144				1,086,352				1,085,448				1,045,086				1,057,562
Core deposits*		1,358,661				1,301,772				1,318,368				1,230,798				1,179,972
Shareholders’ equity		168,478				166,830				164,059				164,142				162,422
Asset Quality
Non-performing loans		$	7,763			$	7,931			$	9,272			$	10,334			$	10,553
Non-performing loans to total assets		0.41		%		0.42		%		0.49		%		0.56		%		0.57		%
Allowance for loan losses		14,557				14,438				14,202				13,803				13,429
Allowance for loan losses to total loans		1.08		%		1.08		%		1.06		%		1.03		%		1.00		%
Allowance for loan losses to non-performing loans		187.52		%		182.05		%		153.17		%		133.57		%		127.25		%
Non-performing loans to total loans		0.58		%		0.59		%		0.69		%		0.77		%		0.78		%
Capitalization
Shareholders’ equity to total assets		8.82		%		8.80		%		8.65		%		8.95		%		8.82		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

		Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in Thousands, Except Per Share Data)		2021				2020				2021				2020
GAAP net income		$	4,125			$	4,472			$	11,154			$	11,305
Less: net securities gains, net of tax		32				799				236				975
Non-GAAP core earnings		$	4,093			$	3,673			$	10,918			$	10,330
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Return on average assets (ROA)		0.86		%		0.97		%		0.79		%		0.85		%
Less: net securities gains, net of tax		—		%		0.18		%		0.02		%		0.07		%
Non-GAAP core ROA		0.86		%		0.79		%		0.77		%		0.78		%
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Return on average equity (ROE)		9.85		%		11.05		%		9.17		%		9.57		%
Less: net securities gains, net of tax		0.07		%		1.97		%		0.19		%		0.82		%
Non-GAAP core ROE		9.78		%		9.08		%		8.98		%		8.75		%
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Basic earnings per share (EPS)		$	0.58			$	0.63			$	1.58			$	1.61
Less: net securities gains, net of tax		—				0.11				0.03				0.14
Non-GAAP basic core EPS		$	0.58			$	0.52			$	1.55			$	1.47
		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Diluted EPS		$	0.58			$	0.63			$	1.58			$	1.61
Less: net securities gains, net of tax		—				0.11				0.03				0.14
Non-GAAP diluted core EPS		$	0.58			$	0.52			$	1.55			$	1.47

COVID-19 Loan Deferrals as of September 30, 2021

(In Thousands)		Amount
Commercial, financial, and agricultural		$	—
Real estate mortgage:
Residential		1,066
Commercial		271
Consumer automobile loans		—
Other consumer installment loans		9
Total loan deferrals		$	1,346

FAQ

What are the latest earnings results for Penns Woods Bancorp (PWOD)?

Penns Woods Bancorp reported a net income of $11.2 million and earnings per share of $1.58 for the nine months ended September 30, 2021.

How have the assets for PWOD changed recently?

Total assets of Penns Woods Bancorp increased by $70 million to $1.9 billion as of September 30, 2021.

What is the impact of COVID-19 on PWOD's loan performance?

The ratio of non-performing loans decreased to 0.58% due to improved loan repayments and decreased loan deferrals.

What were the core earnings for Penns Woods Bancorp (PWOD)?

Core earnings were reported at $10.9 million for the nine months ended September 30, 2021, compared to $10.3 million in 2020.

How much did PWOD's deposits increase?

Deposits for Penns Woods Bancorp rose by $101.2 million to $1.6 billion as of September 30, 2021.