Penns Woods Bancorp, Inc. (Nasdaq:PWOD)
Highlights
- Net income from core operations ("operating earnings"), which
is a non-GAAP measure of net income excluding net securities gains
and losses and bank owned life insurance gains on death benefit,
increased to $3,372,000 for the three months ended September 30,
2012 compared to $3,145,000 for the same period of 2011. Net income
from core operations increased to $9,849,000 for the nine months
ended September 30, 2012 compared to $8,873,000 for the same period
of 2011.
- Operating earnings per share for the three months ended
September 30, 2012 were $0.88 basic and dilutive compared to $0.82
basic and dilutive for the same period of 2011, an increase of
7.3%. Operating earnings per share for the nine months ended
September 30, 2012 were $2.57 basic and dilutive compared to $2.31
basic and dilutive for the same period of 2011, an increase of
11.3%.
- Return on average assets was 1.77% for the three months ended
September 30, 2012 compared to 1.67% for the three month period of
2011. Return on average assets was 1.78% for the nine months
ended September 30, 2012 compared to 1.65% for the nine month
period of 2011.
- Return on average equity was 15.94% for the three months ended
September 30, 2012 compared to 16.49% for the corresponding period
of 2011. Return on average equity was 16.25% for the nine
months ended September 30, 2012 compared to 16.46% for the
corresponding period of 2011.
"The continued growth in loans and deposits is the result of the
effort of our employees who remain focused on building
relationships. Core deposits and home equity loans and lines
have been utilized as the building blocks of the
relationship. These building blocks play a significant role in
generating the strong financial metrics being reported of net
income, earnings per share, return on equity, and return on
assets," said Richard A. Grafmyre, CFP®, President and CEO.
A reconciliation of the non-GAAP financial measures of operating
earnings, operating return on assets, operating return on equity,
and operating earnings per share, described in the highlights, to
the comparable GAAP financial measures is included at the end of
this press release.
Net Income
Net income, as reported under GAAP, for the three and nine
months ended September 30, 2012 was $3,667,000 and $10,754,000
compared to $3,150,000 and $8,967,000 for the same periods of
2011. Results for the three and nine months ended September
30, 2012 compared to 2011 were impacted by an increase in after-tax
securities gains of $290,000 (from a gain of $5,000 to a gain of
$295,000) for the three month periods and an increase in after-tax
securities gains of $702,000 (from a gain of $94,000 to a gain of
$796,000) for the nine month periods. In addition, a gain of
$109,000 on death benefit related to bank owned life insurance was
recorded during the first quarter of 2012. Basic and dilutive
earnings per share for the three and nine months ended September
30, 2012 were $0.96 and $2.80 compared to $0.82 and $2.34 for the
corresponding periods of 2011. Return on average assets and
return on average equity were 1.77% and 15.94% for the three months
ended September 30, 2012 compared to 1.67% and 16.49% for the
corresponding period of 2011. Earnings for the nine months
ended September 30, 2012 correlate to a return on average assets
and a return on average equity of 1.78% and 16.25% compared to
1.65% and 16.46% for the corresponding period of 2011.
Net Interest Margin
The net interest margin for the three and nine months ended
September 30, 2012 was 4.34% and 4.51% compared to 4.55% and 4.67%
for the corresponding periods of 2011. While the net interest
margin has decreased year over year, net interest income on a fully
taxable equivalent basis has increased $2,058,000 to $25,493,000
for the nine months ended September 30, 2012 compared to the
corresponding period of 2011. Driving this increase is the
continued emphasis on core deposit growth. These deposits
represent a lower cost funding source than time deposits and
comprise 73.53% of total deposits at September 30, 2012 compared to
70.28% at September 30, 2011. The average rate paid on total
interest-bearing deposits decreased 29 and 31 basis points (bp) for
the three and nine months ended September 30, 2012 compared to the
same periods of 2011. The decrease in the rate paid on total
interest-bearing deposits was led by a decrease in the rate paid on
time deposits and money markets. The rate paid on time
deposits decreased 32 and 35 bp for the three and nine months ended
September 30, 2012 compared to the same periods of 2011 and the
rate paid on money markets decreased 42 and 39 bp for the three and
nine months ended September 30, 2012 compared to the same periods
of 2011. The duration of the time deposit portfolio, which was
shortened over the past several years, continues to be slowly
lengthened due to the apparent bottoming or near bottoming of
deposit rates. FHLB long-term borrowings have been increased
by $4,500,000 since September 30, 2011. Long-term borrowings
of $10,500,000 matured during the three months ended December 31,
2011 carrying an average rate of 4.60%, while $15,000,000 was
obtained during the three months ended September 30, 2012 carrying
an average rate of 0.90% to fund a combination of loan growth and
FHLB debt that will be maturing during the fourth quarter.
"The net interest margin has and will continue to encounter
challenges. Legacy earning assets are maturing or are repricing
lower at their rate reset dates at the same time that new earning
assets are being added at substantially lower rates due to the
current interest rate environment. In addition, our strategy
is to shorten both the loan and investment portfolios so that we
will have an increased level of cash flow when interest rates begin
to increase. This strategy does limit current earnings, but
serves a key role in our long-term asset liability management
strategy. On the funding side of the balance sheet there is
limited ability to reduce costs as deposit rates have previously
been reduced with limited room for reductions remaining, although
there is $15 million in FHLB debt that is maturing during October
2012 with a substantial interest expense reduction anticipated
after the funds are replaced," commented President
Grafmyre.
Assets
Total assets increased $87,956,000 to $840,606,000 at September
30, 2012 compared to September 30, 2011. Net loans increased
12.9% to $477,530,000 at September 30, 2012 compared to September
30, 2011 as the economic environment has in general provided fewer
loan opportunities over the past year. Housing,
transportation, and all other facets related to the Marcellus Shale
natural gas exploration are creating loan opportunities and we are
aggressively attempting to attract those loans that meet or exceed
our credit standards. During 2012 several successful loan
campaigns were undertaken to build home equity loans and lines of
credit. The investment portfolio increased $29,564,000 from
September 30, 2011 to September 30, 2012 due to a combination of
market value increases and the purchase of short maturity bonds
that have been utilized to reduce the portfolio duration and to
provide current cash flow.
Non-performing Loans
Our non-performing loans to total loans ratio has decreased to
2.48% at September 30, 2012 from 3.34% at September 30,
2011. The decrease in non-performing loans is primarily the
result of a decrease in commercial loan delinquencies due to
several partial charge-offs and the receipt of collateral in lieu
of payment with the collateral now carried as other real estate
owned. The majority of non-performing loans are centered on
several 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 $1,433,000
for the nine months ended September 30, 2012 represented 0.31% of
average loans for the nine months ended September 30,
2012. The allowance for loan losses was increased to 1.55% of
total loans at September 30, 2012 from 1.48% at September 30, 2011
due to the general economic uncertainty that persists.
Deposits
Deposits have grown 11.4%, or $65,810,000, to $641,110,000 at
September 30, 2012 compared to September 30, 2011, with core
deposits (total deposits excluding time deposits) increasing
$67,071,000, while higher cost time deposits decreased
$1,261,000. Noninterest-bearing deposits have increased 10.0%
to $115,285,000 at September 30, 2012 compared to September 30,
2011. Also playing a significant role in increasing core
deposits were money market and NOW accounts with growth rates of
21.3% and 21.6%, respectively. Driving this growth is our
commitment to easy-to-use products, community involvement, and
emphasis on customer service. We have also successfully
implemented a targeted marketing campaign aimed at further
strengthening our customer relationships, while also expanding our
market penetration. In addition our newest branch, Danville,
opened in January 2012 and has gathered approximately $25 million
in deposits during the first nine months of its operation.
Shareholders' Equity
Shareholders' equity increased $15,207,000 to $93,779,000 at
September 30, 2012 compared to September 30, 2011. The
accumulated other comprehensive gain of $6,715,000 at September 30,
2012 is a result of an increase in unrealized gains on available
for sale securities from an unrealized gain of $950,000 at
September 30, 2011 to an unrealized gain of $10,848,000 at
September 30, 2012. However, the amount of accumulated other
comprehensive gain at September 30, 2012 was also impacted by the
change in net excess of the projected benefit obligation over the
market value of the plan assets of the defined benefit pension plan
resulting in an increase in the net loss of $1,720,000. The
current level of shareholders' equity equates to a book value per
share of $24.43 at September 30, 2012 compared to $20.48 at
September 30, 2011 and an equity to asset ratio of 11.16% at
September 30, 2012 compared to 10.44% at September 30,
2011. Excluding accumulated other comprehensive gain/loss,
book value per share was $22.68 at September 30, 2012 compared to
$20.86 at September 30, 2011. Dividends per share paid to
shareholders were $0.47 and $1.41 for the three and nine months
ended September 30, 2012 compared to $0.46 and $1.38 for the three
and nine months ended September 30, 2011.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore
State Bank, which operates thirteen branch offices providing
financial services in Lycoming, Clinton, Centre, and Montour
Counties. Investment and insurance products are offered
through the 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 certain of these 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; and (v) 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, 2011.
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.jssb.com.
THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT
| |
|
|
|
| PENNS WOODS BANCORP,
INC. |
| CONSOLIDATED BALANCE
SHEET |
|
(UNAUDITED) |
| |
|
|
|
| (In Thousands, Except Share Data) |
September 30, |
| |
2012 |
2011 |
% Change |
| |
|
|
|
| ASSETS |
|
|
|
| Noninterest-bearing balances |
$ 13,243 |
$ 11,658 |
13.6% |
| Interest-bearing deposits in other financial
institutions |
7,901 |
17 |
46376.5% |
| Total cash and cash
equivalents |
21,144 |
11,675 |
81.1% |
| |
|
|
|
| Investment securities, available for sale, at
fair value |
296,255 |
266,637 |
11.1% |
| Investment securities held to maturity (fair
value of $0 and $54) |
-- |
54 |
-100.0% |
| Loans held for sale |
2,285 |
3,623 |
-36.9% |
| Loans |
485,051 |
429,344 |
13.0% |
| Allowance for loan losses |
(7,521) |
(6,355) |
18.3% |
| Loans, net |
477,530 |
422,989 |
12.9% |
| Premises and equipment, net |
8,247 |
7,533 |
9.5% |
| Accrued interest receivable |
4,255 |
3,802 |
11.9% |
| Bank-owned life insurance |
16,238 |
15,929 |
1.9% |
| Investment in limited partnerships |
3,048 |
3,709 |
-17.8% |
| Goodwill |
3,032 |
3,032 |
0.0% |
| Deferred tax asset |
3,878 |
8,087 |
-52.0% |
| Other assets |
4,694 |
5,580 |
-15.9% |
| TOTAL ASSETS |
$ 840,606 |
$752,650 |
11.7% |
| |
|
|
|
| LIABILITIES |
|
|
|
| Interest-bearing deposits |
$ 525,825 |
$ 470,517 |
11.8% |
| Noninterest-bearing deposits |
115,285 |
104,783 |
10.0% |
| Total deposits |
641,110 |
575,300 |
11.4% |
| |
|
|
|
| Short-term borrowings |
17,932 |
17,584 |
2.0% |
| Long-term borrowings, Federal Home Loan Bank
(FHLB) |
76,278 |
71,778 |
6.3% |
| Accrued interest payable |
501 |
616 |
-18.7% |
| Other liabilities |
11,006 |
8,800 |
25.1% |
| TOTAL LIABILITIES |
746,827 |
674,078 |
10.8% |
| |
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
| Preferred stock, no par value, 3,000,000
shares authorized; no shares issued |
-- |
-- |
0.0% |
| Common stock, par value $8.33, 15,000,000
shares authorized; |
|
|
|
| 4,018,777 and 4,017,251 shares
issued |
33,489 |
33,477 |
0.0% |
| Additional paid-in capital |
18,148 |
18,103 |
0.2% |
| Retained earnings |
41,737 |
34,765 |
20.1% |
| Accumulated other comprehensive gain
(loss): |
|
|
|
| Net unrealized gain on available
for sale securities |
10,848 |
950 |
1041.9% |
| Defined benefit plan |
(4,133) |
(2,413) |
-71.3% |
| Treasury stock at cost, 180,596 shares |
(6,310) |
(6,310) |
0.0% |
| TOTAL SHAREHOLDERS' EQUITY |
93,779 |
78,572 |
19.4% |
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 840,606 |
$752,650 |
11.7% |
| |
|
|
|
| |
|
|
|
|
|
|
| PENNS WOODS BANCORP,
INC. |
| CONSOLIDATED STATEMENT
OF INCOME |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| (In Thousands, Except Per Share Data) |
|
|
|
|
|
|
| |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
| |
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
| INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
| Loans including fees |
$ 6,346 |
$ 6,327 |
0.3% |
$ 18,954 |
$ 18,759 |
1.0% |
| Investment securities: |
|
|
|
|
|
|
| Taxable |
1,486 |
1,445 |
2.8% |
4,477 |
4,231 |
5.8% |
| Tax-exempt |
1,339 |
1,336 |
0.2% |
4,127 |
3,875 |
6.5% |
| Dividend and other interest
income |
96 |
65 |
47.7% |
274 |
174 |
57.5% |
| TOTAL INTEREST AND DIVIDEND INCOME |
9,267 |
9,173 |
1.0% |
27,832 |
27,039 |
2.9% |
| |
|
|
|
|
|
|
| INTEREST EXPENSE: |
|
|
|
|
|
|
| Deposits |
902 |
1,154 |
-21.8% |
2,797 |
3,530 |
-20.8% |
| Short-term borrowings |
38 |
58 |
-34.5% |
100 |
157 |
-36.3% |
| Long-term borrowings, FHLB |
637 |
751 |
-15.2% |
1,877 |
2,227 |
-15.7% |
| TOTAL INTEREST EXPENSE |
1,577 |
1,963 |
-19.7% |
4,774 |
5,914 |
-19.3% |
| |
|
|
|
|
|
|
| NET INTEREST INCOME |
7,690 |
7,210 |
6.7% |
23,058 |
21,125 |
9.2% |
| |
|
|
|
|
|
|
| PROVISION FOR LOAN LOSSES |
600 |
600 |
0.0% |
1,800 |
1,800 |
0.0% |
| |
|
|
|
|
|
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES |
7,090 |
6,610 |
7.3% |
21,258 |
19,325 |
10.0% |
| |
|
|
|
|
|
|
| NON-INTEREST INCOME: |
|
|
|
|
|
|
| Service charges |
489 |
508 |
-3.7% |
1,394 |
1,538 |
-9.4% |
| Securities gains, net |
447 |
8 |
5487.5% |
1,206 |
142 |
749.3% |
| Bank-owned life insurance |
138 |
148 |
-6.8% |
539 |
461 |
16.9% |
| Gain on sale of loans |
527 |
359 |
46.8% |
1,053 |
850 |
23.9% |
| Insurance commissions |
295 |
241 |
22.4% |
1,053 |
630 |
67.1% |
| Brokerage commissions |
239 |
241 |
-0.8% |
698 |
797 |
-12.4% |
| Other |
636 |
485 |
31.1% |
1,872 |
1,390 |
34.7% |
| TOTAL NON-INTEREST INCOME |
2,771 |
1,990 |
39.2% |
7,815 |
5,808 |
34.6% |
| |
|
|
|
|
|
|
| NON-INTEREST EXPENSE: |
|
|
|
|
|
|
| Salaries and employee benefits |
2,939 |
2,621 |
12.1% |
8,806 |
7,728 |
13.9% |
| Occupancy, net |
317 |
313 |
1.3% |
963 |
962 |
0.1% |
| Furniture and equipment |
355 |
354 |
0.3% |
1,058 |
1,011 |
4.6% |
| Pennsylvania shares tax |
169 |
172 |
-1.7% |
505 |
516 |
-2.1% |
| Amortization of investments in limited
partnerships |
165 |
165 |
0.0% |
496 |
496 |
0.0% |
| FDIC deposit insurance |
111 |
43 |
158.1% |
349 |
416 |
-16.1% |
| Other |
1,402 |
1,300 |
7.8% |
4,088 |
3,683 |
11.0% |
| TOTAL NON-INTEREST EXPENSE |
5,458 |
4,968 |
9.9% |
16,265 |
14,812 |
9.8% |
| |
|
|
|
|
|
|
| INCOME BEFORE INCOME TAX PROVISION |
4,403 |
3,632 |
21.2% |
12,808 |
10,321 |
24.1% |
| INCOME TAX PROVISION |
736 |
482 |
52.7% |
2,054 |
1,354 |
51.7% |
| NET INCOME |
$ 3,667 |
$ 3,150 |
16.4% |
$ 10,754 |
$ 8,967 |
19.9% |
| |
|
|
|
|
|
|
| EARNINGS PER SHARE - BASIC |
$ 0.96 |
$ 0.82 |
16.5% |
$ 2.80 |
$ 2.34 |
19.8% |
| |
|
|
|
|
|
|
| EARNINGS PER SHARE - DILUTED |
$ 0.96 |
$ 0.82 |
16.5% |
$ 2.80 |
$ 2.34 |
19.8% |
| |
|
|
|
|
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING -
BASIC |
3,837,925 |
3,836,244 |
0.0% |
3,837,570 |
3,835,778 |
0.0% |
| |
|
|
|
|
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING -
DILUTED |
3,837,925 |
3,836,244 |
0.0% |
3,837,570 |
3,835,778 |
0.0% |
| |
|
|
|
|
|
|
| DIVIDENDS PER SHARE |
$ 0.47 |
$ 0.46 |
2.2% |
$ 1.41 |
$ 1.38 |
2.2% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| PENNS WOODS BANCORP,
INC. |
| AVERAGE BALANCES AND
INTEREST RATES |
| |
|
|
|
|
|
|
| |
For the Three Months
Ended |
| (Dollars in Thousands) |
September 30, 2012 |
September 30, 2011 |
| |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
| ASSETS: |
|
|
|
|
|
|
| Tax-exempt loans |
$ 22,916 |
$ 302 |
5.24% |
$ 20,211 |
$ 311 |
6.10% |
| All other loans |
452,370 |
6,147 |
5.41% |
407,346 |
6,122 |
5.96% |
| Total loans |
475,286 |
6,449 |
5.40% |
427,557 |
6,433 |
5.97% |
| |
|
|
|
|
|
|
| Taxable securities |
162,822 |
1,580 |
3.88% |
139,510 |
1,509 |
4.33% |
| Tax-exempt securities |
132,996 |
2,029 |
6.10% |
117,917 |
2,024 |
6.87% |
| Total securities |
295,818 |
3,609 |
4.88% |
257,427 |
3,533 |
5.49% |
| |
|
|
|
|
|
|
| Interest-bearing deposits |
8,966 |
2 |
0.09% |
15,734 |
1 |
0.03% |
| |
|
|
|
|
|
|
| Total interest-earning assets |
780,070 |
10,060 |
5.14% |
700,718 |
9,967 |
5.66% |
| |
|
|
|
|
|
|
| Other assets |
48,096 |
|
|
53,323 |
|
|
| |
|
|
|
|
|
|
| TOTAL ASSETS |
$ 828,166 |
|
|
$ 754,041 |
|
|
| |
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
| Savings |
$ 81,413 |
16 |
0.08% |
$ 72,704 |
28 |
0.15% |
| Super Now deposits |
120,135 |
158 |
0.52% |
98,094 |
141 |
0.57% |
| Money market deposits |
151,307 |
173 |
0.45% |
128,012 |
280 |
0.87% |
| Time deposits |
171,245 |
555 |
1.29% |
173,825 |
705 |
1.61% |
| Total interest-bearing deposits |
524,100 |
902 |
0.68% |
472,635 |
1,154 |
0.97% |
| |
|
|
|
|
|
|
| Short-term borrowings |
18,607 |
38 |
0.81% |
17,357 |
58 |
1.33% |
| Long-term borrowings, FHLB |
65,517 |
637 |
3.80% |
71,778 |
751 |
4.09% |
| Total borrowings |
84,124 |
675 |
3.14% |
89,135 |
809 |
3.56% |
| |
|
|
|
|
|
|
| Total interest-bearing liabilities |
608,224 |
1,577 |
1.02% |
561,770 |
1,963 |
1.38% |
| |
|
|
|
|
|
|
| Demand deposits |
116,582 |
|
|
104,017 |
|
|
| Other liabilities |
11,355 |
|
|
11,821 |
|
|
| Shareholders' equity |
92,005 |
|
|
76,433 |
|
|
| |
|
|
|
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 828,166 |
|
|
$ 754,041 |
|
|
| Interest rate spread |
|
|
4.12% |
|
|
4.28% |
| Net interest income/margin |
|
$ 8,483 |
4.34% |
|
$ 8,004 |
4.55% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
For the Three Months Ended |
|
|
|
| |
|
September 30, |
|
|
|
| |
|
2012 |
2011 |
|
|
|
| Total interest income |
|
$ 9,267 |
$ 9,173 |
|
|
|
| Total interest expense |
|
1,577 |
1,963 |
|
|
|
| |
|
|
|
|
|
|
| Net interest income |
|
7,690 |
7,210 |
|
|
|
| Tax equivalent adjustment |
|
793 |
794 |
|
|
|
| |
|
|
|
|
|
|
| Net interest income (fully taxable
equivalent) |
|
$ 8,483 |
$ 8,004 |
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| PENNS WOODS BANCORP,
INC. |
|
| AVERAGE BALANCES AND
INTEREST RATES |
|
| |
|
|
|
|
|
|
|
| |
For the Nine Months
Ended |
|
| (Dollars in Thousands) |
September 30, 2012 |
September 30, 2011 |
|
| |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
|
| ASSETS: |
|
|
|
|
|
|
|
| Tax-exempt loans |
$ 21,977 |
$ 909 |
5.52% |
$ 20,302 |
$ 924 |
6.09% |
|
| All other loans |
436,921 |
18,354 |
5.61% |
402,384 |
18,149 |
6.03% |
|
| Total loans |
458,898 |
19,263 |
5.61% |
422,686 |
19,073 |
6.03% |
|
| |
|
|
|
|
|
|
|
| Taxable securities |
157,791 |
4,747 |
4.01% |
126,887 |
4,402 |
4.63% |
|
| Tax-exempt securities |
131,306 |
6,253 |
6.35% |
109,552 |
5,871 |
7.15% |
|
| Total securities |
289,097 |
11,000 |
5.07% |
236,439 |
10,273 |
5.79% |
|
| |
|
|
|
|
|
|
|
| Interest-bearing deposits |
8,098 |
4 |
0.07% |
11,916 |
3 |
0.03% |
|
| |
|
|
|
|
|
|
|
| Total interest-earning assets |
756,093 |
30,267 |
5.34% |
671,041 |
29,349 |
5.84% |
|
| |
|
|
|
|
|
|
|
| Other assets |
49,702 |
|
|
53,405 |
|
|
|
| |
|
|
|
|
|
|
|
| TOTAL ASSETS |
$ 805,795 |
|
|
$ 724,446 |
|
|
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
| Savings |
$ 78,180 |
44 |
0.08% |
$ 69,994 |
98 |
0.19% |
|
| Super Now deposits |
116,205 |
452 |
0.52% |
83,357 |
331 |
0.53% |
|
| Money market deposits |
143,878 |
580 |
0.54% |
120,177 |
835 |
0.93% |
|
| Time deposits |
173,578 |
1,721 |
1.32% |
181,158 |
2,266 |
1.67% |
|
| Total interest-bearing deposits |
511,841 |
2,797 |
0.73% |
454,686 |
3,530 |
1.04% |
|
| |
|
|
|
|
|
|
|
| Short-term borrowings |
19,293 |
100 |
0.69% |
17,055 |
157 |
1.23% |
|
| Long-term borrowings, FHLB |
62,701 |
1,877 |
3.93% |
71,778 |
2,227 |
4.09% |
|
| Total borrowings |
81,994 |
1,977 |
3.17% |
88,833 |
2,384 |
3.54% |
|
| |
|
|
|
|
|
|
|
| Total interest-bearing liabilities |
593,835 |
4,774 |
1.07% |
543,519 |
5,914 |
1.45% |
|
| |
|
|
|
|
|
|
|
| Demand deposits |
112,464 |
|
|
98,000 |
|
|
|
| Other liabilities |
11,258 |
|
|
10,272 |
|
|
|
| Shareholders' equity |
88,238 |
|
|
72,655 |
|
|
|
| |
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 805,795 |
|
|
$ 724,446 |
|
|
|
| Interest rate spread |
|
|
4.27% |
|
|
4.39% |
|
| Net interest income/margin |
|
$ 25,493 |
4.51% |
|
$23,435 |
4.67% |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
For the Nine Months Ended |
|
|
|
|
| |
|
September 30, |
|
|
|
|
| |
|
2012 |
2011 |
|
|
|
|
| Total interest income |
|
$ 27,832 |
$ 27,039 |
|
|
|
|
| Total interest expense |
|
4,774 |
5,914 |
|
|
|
|
| Net interest income |
|
23,058 |
21,125 |
|
|
|
|
| Tax equivalent adjustment |
|
2,435 |
2,310 |
|
|
|
|
| Net interest income (fully taxable
equivalent) |
|
$ 25,493 |
$ 23,435 |
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Quarter
Ended |
| |
|
|
|
|
|
| (Dollars in Thousands, Except Per Share
Data) |
9/30/2012 |
6/30/2012 |
3/31/2012 |
12/31/2011 |
9/30/2011 |
| |
|
|
|
|
|
| Operating Data |
|
|
|
|
|
| |
|
|
|
|
|
| Net income |
$ 3,667 |
$ 3,398 |
$ 3,689 |
$ 3,395 |
$ 3,150 |
| Net interest income |
7,690 |
7,698 |
7,670 |
7,595 |
7,210 |
| Provision for loan losses |
600 |
600 |
600 |
900 |
600 |
| Net security gains |
447 |
170 |
589 |
479 |
8 |
| Non-interest income, ex. net security
gains |
2,324 |
2,111 |
2,174 |
1,932 |
1,982 |
| Non-interest expense |
5,458 |
5,343 |
5,464 |
5,152 |
4,968 |
| |
|
|
|
|
|
| Performance Statistics |
|
|
|
|
|
| |
|
|
|
|
|
| Net interest margin |
4.34% |
4.47% |
4.72% |
4.78% |
4.55% |
| Annualized return on average assets |
1.77% |
1.67% |
1.91% |
1.80% |
1.67% |
| Annualized return on average equity |
15.94% |
15.48% |
17.39% |
17.00% |
16.49% |
| Annualized net loan charge-offs to avg
loans |
0.44% |
0.79% |
0.01% |
0.09% |
0.01% |
| Net charge-offs |
517 |
907 |
9 |
101 |
8 |
| Efficiency ratio |
54.5% |
54.5% |
55.5% |
54.1% |
54.1% |
| |
|
|
|
|
|
| Per Share Data |
|
|
|
|
|
| |
|
|
|
|
|
| Basic earnings per share |
$ 0.96 |
$ 0.89 |
$ 0.96 |
$ 0.88 |
$ 0.82 |
| Diluted earnings per share |
0.96 |
0.89 |
0.96 |
0.88 |
0.82 |
| Dividend declared per share |
0.47 |
0.47 |
0.47 |
0.46 |
0.46 |
| Book value |
24.43 |
22.96 |
22.22 |
20.97 |
20.48 |
| Common stock price: |
|
|
|
|
|
| High |
44.60 |
39.90 |
41.67 |
39.30 |
36.56 |
| Low |
37.78 |
36.72 |
36.20 |
32.01 |
31.07 |
| Close |
44.33 |
39.81 |
40.88 |
38.78 |
32.75 |
| Weighted average common shares: |
|
|
|
|
|
| Basic |
3,838 |
3,838 |
3,837 |
3,837 |
3,836 |
| Fully Diluted |
3,838 |
3,838 |
3,837 |
3,837 |
3,836 |
| End-of-period common shares: |
|
|
|
|
|
| Issued |
4,019 |
4,018 |
4,018 |
4,018 |
4,017 |
| Treasury |
181 |
181 |
181 |
181 |
181 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Quarter
Ended |
| |
|
|
|
|
|
| (Dollars in Thousands, Except Per Share
Data) |
9/30/2012 |
6/30/2012 |
3/31/2012 |
12/31/2011 |
9/30/2011 |
| |
|
|
|
|
|
| Financial Condition
Data: |
|
|
|
|
|
| General |
|
|
|
|
|
| Total assets |
$ 840,606 |
$ 818,433 |
$ 793,114 |
$ 763,953 |
$ 752,650 |
| Loans, net |
477,530 |
457,904 |
435,832 |
428,805 |
422,989 |
| Intangibles |
3,032 |
3,032 |
3,032 |
3,032 |
3,032 |
| Total deposits |
641,110 |
641,167 |
621,542 |
581,664 |
575,300 |
| Noninterest-bearing |
115,285 |
117,762 |
116,271 |
111,354 |
104,783 |
| |
|
|
|
|
|
| Savings |
81,479 |
81,479 |
77,253 |
71,646 |
73,376 |
| NOW |
125,572 |
115,972 |
108,904 |
101,808 |
103,264 |
| Money Market |
149,054 |
152,114 |
141,830 |
124,335 |
122,896 |
| Time Deposits |
169,720 |
173,840 |
177,284 |
172,521 |
170,981 |
| Total interest-bearing
deposits |
525,825 |
523,405 |
505,271 |
470,310 |
470,517 |
| |
|
|
|
|
|
| Core deposits* |
471,390 |
467,327 |
444,258 |
409,143 |
404,319 |
| Shareholders' equity |
93,779 |
88,111 |
85,279 |
80,460 |
78,572 |
| |
|
|
|
|
|
| Asset Quality |
|
|
|
|
|
| |
|
|
|
|
|
| Non-performing assets |
$ 12,041 |
$ 8,725 |
$ 11,308 |
$ 12,009 |
$ 14,344 |
| Non-performing assets to total
assets |
1.43% |
1.07% |
1.43% |
1.57% |
1.91% |
| Allowance for loan losses |
7,521 |
7,438 |
7,745 |
7,154 |
6,355 |
| Allowance for loan losses to total
loans |
1.55% |
1.60% |
1.75% |
1.64% |
1.48% |
| Allowance for loan losses
to non-performing loans |
62.46% |
85.25% |
68.49% |
59.57% |
44.30% |
| Non-performing loans to total loans |
2.48% |
1.87% |
2.55% |
2.75% |
3.34% |
| |
|
|
|
|
|
| Capitalization |
|
|
|
|
|
| |
|
|
|
|
|
| Shareholders' equity to total assets |
11.16% |
10.77% |
10.75% |
10.53% |
10.44% |
| |
|
|
|
|
|
| * Core deposits are defined
as total deposits less time deposits |
|
|
|
| |
|
|
|
| Reconciliation of GAAP
and Non-GAAP Financial Measures |
| |
|
|
|
|
|
|
|
| (Dollars in Thousands, Except Per Share
Data) |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2012 |
|
2011 |
|
2012 |
|
2011 |
| GAAP net income |
$ 3,667 |
|
$ 3,150 |
|
$ 10,754 |
|
$ 8,967 |
| Less: net securities and bank-owned life
insurance gains, net of tax |
295 |
|
5 |
|
905 |
|
94 |
| Non-GAAP operating earnings |
$ 3,372 |
|
$ 3,145 |
|
$ 9,849 |
|
$ 8,873 |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2012 |
|
2011 |
|
2012 |
|
2011 |
| Return on average assets (ROA) |
1.77% |
|
1.67% |
|
1.78% |
|
1.65% |
| Less: net securities and bank-owned life
insurance gains, net of tax |
0.14% |
|
0.00% |
|
0.15% |
|
0.02% |
| Non-GAAP operating ROA |
1.63% |
|
1.67% |
|
1.63% |
|
1.63% |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2012 |
|
2011 |
|
2012 |
|
2011 |
| Return on average equity (ROE) |
15.94% |
|
16.49% |
|
16.25% |
|
16.46% |
| Less: net securities and bank-owned life
insurance gains, net of tax |
1.28% |
|
0.03% |
|
1.37% |
|
0.18% |
| Non-GAAP operating ROE |
14.66% |
|
16.46% |
|
14.88% |
|
16.28% |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2012 |
|
2011 |
|
2012 |
|
2011 |
| Basic earnings per share (EPS) |
$ 0.96 |
|
$ 0.82 |
|
$ 2.80 |
|
$ 2.34 |
| Less: net securities and bank-owned life
insurance gains, net of tax |
0.08 |
|
0.00 |
|
0.23 |
|
0.03 |
| Non-GAAP basic operating EPS |
$ 0.88 |
|
$ 0.82 |
|
$ 2.57 |
|
$ 2.31 |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
| |
2012 |
|
2011 |
|
2012 |
|
2011 |
| Dilutive EPS |
$ 0.96 |
|
$ 0.82 |
|
$ 2.80 |
|
$ 2.34 |
| Less: net securities and bank-owned life
insurance gains, net of tax |
0.08 |
|
0.00 |
|
0.23 |
|
0.03 |
| Non-GAAP dilutive operating EPS |
$ 0.88 |
|
$ 0.82 |
|
$ 2.57 |
|
$ 2.31 |
| |
|
|
|
|
|
|
|
CONTACT: Richard A. Grafmyre, President and Chief Executive Officer
300 Market Street
Williamsport, PA 17701
570-322-1111
e-mail: jssb@jssb.com
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