In 2012 Penns Woods Bancorp, Inc. (Nasdaq:PWOD) continued their
strong earnings and growth trend. Record earnings of $13,850,000
were achieved for the twelve month period ending December 31, 2012.
The driving force behind the record net income was growth in loans
and deposits with both reaching record levels. The strong levels of
earnings and balance sheet growth led to a stock price that reached
an all time high (adjusted for stock splits/dividends) during the
fourth quarter of 2012.
Highlights
- Net income from core operations ("operating earnings"), which
is a non-GAAP measure of net income excluding net securities gains
and bank owned life insurance gains on death benefit, decreased to
$3,044,000 for the three months ended December 31, 2012 compared to
$3,079,000 for the same period of 2011. Net income from core
operations increased to $12,893,000 for the twelve months ended
December 31, 2012 compared to $11,952,000 for the same period of
2011.
- Operating earnings per share for the three months ended
December 31, 2012 were $0.79 basic and dilutive compared to $0.80
basic and dilutive for the same period of 2011. Operating earnings
per share for the twelve months ended December 31, 2012 were $3.36
basic and dilutive compared to $3.12 basic and dilutive for the
same period of 2011, an increase of 7.7%.
- Return on average assets was 1.46% for the three months ended
December 31, 2012 compared to 1.80% for the three month period of
2011. Return on average assets was 1.70% for the twelve months
ended December 31, 2012 compared to 1.69% for the twelve month
period of 2011.
- Return on average equity was 12.92% for the three months ended
December 31, 2012 compared to 17.00% for the corresponding period
of 2011. Return on average equity was 15.36% for the twelve months
ended December 31, 2012 compared to 16.60% for the corresponding
period of 2011.
- The results for the three and twelve months ended December 31,
2012 were negatively impacted by $251,000 in expenses related to
the announced acquisition of Luzerne National Bank
Corporation.
"Our strategy of acquiring high quality earning assets, while
using core deposits to fund their acquisition, is paying rewards as
reflected in the strong financial metrics for the three and twelve
month periods ended. Growth in the loan portfolio, in particular
home equity products, and in the core deposit portfolio, led by NOW
and money market accounts, are two of the primary drivers of this
strategy. Combine this strategy with the knowledge and hard work of
our employees and you have the recipe to our success," 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 twelve
months ended December 31, 2012 was $3,096,000 and $13,850,000
compared to $3,395,000 and $12,362,000 for the same periods of
2011. Results for the three and twelve months ended December 31,
2012 compared to 2011 were impacted by a decrease in after-tax
securities gains of $264,000 (from a gain of $316,000 to a gain of
$52,000) for the three month periods and an increase in after-tax
securities gains of $438,000 (from a gain of $410,000 to a gain of
$848,000) for the twelve 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. Impacting the results
for the three and twelve months ended December 31, 2012 was the
recognition of $251,000 in expenses related to the announced
acquisition of Luzerne National Bank Corporation. Basic and
dilutive earnings per share for the three and twelve months ended
December 31, 2012 were $0.81 and $3.61 compared to $0.88 and $3.22
for the corresponding periods of 2011. Return on average
assets and return on average equity were 1.46% and 12.92% for the
three months ended December 31, 2012 compared to 1.80% and 17.00%
for the corresponding period of 2011. Earnings for the twelve
months ended December 31, 2012 correlate to a return on average
assets and a return on average equity of 1.70% and 15.36% compared
to 1.69% and 16.60% for the corresponding period of 2011.
Net Interest Margin
The net interest margin for the three and twelve months ended
December 31, 2012 was 4.29% and 4.45% compared to 4.78% and 4.70%
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 $2,257,000 to $34,099,000
for the twelve months ended December 31, 2012 compared to the
corresponding period of 2011. Driving this increase is the
growth in the loan portfolio of 17.5% coupled with the continued
emphasis on core deposit growth. The loan growth was driven by
several campaigns related to increasing our market share in home
equity products. The primary funding for the loan growth was
an increase in core deposits of 15.5%. These deposits
represent a lower cost funding source than time deposits and
comprise 73.62% of total deposits at December 31, 2012 compared to
70.34% at December 31, 2011. The average rate paid on total
interest-bearing deposits decreased 23 and 28 basis points (bp) for
the three and twelve months ended December 31, 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 28 and 33 bp for the three and twelve months
ended December 31, 2012 compared to the same periods of 2011 and
the rate paid on money markets decreased 32 and 37 bp for the three
and twelve months ended December 31, 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 $15,000,000 since December 31, 2011 to fund a
combination of loan growth and FHLB debt that matured.
Long-term borrowings of $15,000,000 matured during the three
months ended December 31, 2012 carrying an average rate of 4.18%,
while $15,000,000 was obtained during the third quarter 2012
carrying an average rate of 0.90% and $15,000,000 was obtained
during the fourth quarter 2012 carrying an average rate of
0.87%.
"The net interest margin has and will continue to encounter
challenges as we move forward in the current low rate environment.
We continue to add quality earning assets, but the earning assets
being added are at a lower rate than the legacy earning assets that
are maturing or are repricing lower at their rate reset dates.
In addition, our investment portfolio strategy continues to
focus on shortening the portfolio 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, while reducing risk
in an upward rate environment in terms of interest rate and market
value depreciation. 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
as market rates have stabilized at their current
levels. During the second half of 2012, borrowings from the
FHLB totaling $30 million at a blended rate of less than one
percent were obtained. These borrowings replaced $15 million
in higher cost FHLB borrowings that were maturing and provided
additional funding for the growth in the loan and investment
portfolios," commented President Grafmyre.
Assets
Total assets increased $92,582,000 to $856,535,000 at December
31, 2012 compared to December 31, 2011. Net loans increased
17.7% to $504,615,000 at December 31, 2012 compared to December 31,
2011 due in large part to campaigns related to increasing home
equity product market share. 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. The investment portfolio increased $19,165,000 from
December 31, 2011 to December 31, 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
2.29% at December 31, 2012 from 2.75% at December 31,
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 $2,062,000
for the twelve months ended December 31, 2012 represented 0.44% of
average loans for the twelve months ended December 31,
2012. The allowance for loan losses decreased to 1.49% of
total loans at December 31, 2012 from 1.64% at December 31, 2011
due to several large charge-offs and the increase in the loan
portfolio.
Deposits
Deposits have grown 10.4%, or $60,362,000, to $642,026,000 at
December 31, 2012 compared to December 31, 2011, with core deposits
(total deposits excluding time deposits) increasing $63,532,000,
while higher cost time deposits decreased
$3,170,000. Noninterest-bearing deposits have increased 3.2%
to $114,953,000 at December 31, 2012 compared to December 31,
2011. Also playing a significant role in increasing core
deposits were NOW and money market accounts with growth rates of
28.1% and 16.4%, 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 $27 million
in deposits during the first twelve months of its operation.
Shareholders' Equity
Shareholders' equity increased $13,266,000 to $93,726,000 at
December 31, 2012 compared to December 31, 2011. The
accumulated other comprehensive gain of $5,357,000 at December 31,
2012 is a result of an increase in unrealized gains on available
for sale securities from an unrealized gain of $2,914,000 at
December 31, 2011 to an unrealized gain of $10,164,000 at December
31, 2012. However, the amount of accumulated other
comprehensive gain at December 31, 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 $674,000 to $4,807,000
at December 31, 2012. The current level of shareholders'
equity equates to a book value per share of $24.42 at December 31,
2012 compared to $20.97 at December 31, 2011 and an equity to asset
ratio of 10.94% at December 31, 2012 compared to 10.53% at December
31, 2011. Excluding accumulated other comprehensive gain/loss,
book value per share was $23.02 at December 31, 2012 compared to
$21.29 at December 31, 2011. Dividends per share paid to
shareholders were $0.47 and $1.88 for the three and twelve months
ended December 31, 2012 compared to $0.46 and $1.84 for the three
and twelve months ended December 31, 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) |
December 31, |
|
2012 |
2011 |
% Change |
ASSETS |
|
|
|
Noninterest-bearing balances |
$ 12,695 |
$ 13,829 |
-8.2% |
Interest-bearing deposits in other financial
institutions |
2,447 |
56 |
4269.6% |
Total cash and cash
equivalents |
15,142 |
13,885 |
9.1% |
|
|
|
|
Investment securities, available for sale, at
fair value |
289,316 |
270,097 |
7.1% |
Investment securities held to maturity (fair
value of $0 and $55) |
-- |
54 |
-100.0% |
Loans held for sale |
3,774 |
3,787 |
-0.3% |
Loans |
512,232 |
435,959 |
17.5% |
Allowance for loan losses |
(7,617) |
(7,154) |
6.5% |
Loans, net |
504,615 |
428,805 |
17.7% |
Premises and equipment, net |
8,348 |
7,707 |
8.3% |
Accrued interest receivable |
4,099 |
3,905 |
5.0% |
Bank-owned life insurance |
16,362 |
16,065 |
1.8% |
Investment in limited partnerships |
2,883 |
3,544 |
-18.7% |
Goodwill |
3,032 |
3,032 |
0.0% |
Deferred tax asset |
4,731 |
7,991 |
-40.8% |
Other assets |
4,233 |
5,081 |
-16.7% |
TOTAL ASSETS |
$856,535 |
$763,953 |
12.1% |
|
|
|
|
LIABILITIES |
|
|
|
Interest-bearing deposits |
$ 527,073 |
$ 470,310 |
12.1% |
Noninterest-bearing deposits |
114,953 |
111,354 |
3.2% |
Total deposits |
642,026 |
581,664 |
10.4% |
|
|
|
|
Short-term borrowings |
33,204 |
29,598 |
12.2% |
Long-term borrowings, Federal Home Loan Bank
(FHLB) |
76,278 |
61,278 |
24.5% |
Accrued interest payable |
366 |
536 |
-31.7% |
Other liabilities |
10,935 |
10,417 |
5.0% |
TOTAL LIABILITIES |
762,809 |
683,493 |
11.6% |
|
|
|
|
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; 4,019,112 and 4,017,677 shares issued |
33,492 |
33,480 |
0.0% |
Additional paid-in capital |
18,157 |
18,115 |
0.2% |
Retained earnings |
43,030 |
36,394 |
18.2% |
Accumulated other comprehensive gain
(loss): |
|
|
|
Net unrealized gain on
available for sale securities |
10,164 |
2,914 |
248.8% |
Defined benefit plan |
(4,807) |
(4,133) |
-16.3% |
Treasury stock at cost, 180,596 shares |
(6,310) |
(6,310) |
0.0% |
TOTAL SHAREHOLDERS' EQUITY |
93,726 |
80,460 |
16.5% |
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$856,535 |
$763,953 |
12.1% |
|
PENNS WOODS BANCORP,
INC. |
CONSOLIDATED STATEMENT
OF INCOME |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands, Except Per Share Data) |
Three Months Ended |
Twelve Months Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
Loans including fees |
$ 6,418 |
$ 6,428 |
-0.2% |
$ 25,372 |
$ 25,187 |
0.7% |
Investment securities: |
|
|
|
|
|
|
Taxable |
1,463 |
1,446 |
1.2% |
5,940 |
5,677 |
4.6% |
Tax-exempt |
1,302 |
1,385 |
-6.0% |
5,429 |
5,260 |
3.2% |
Dividend and other interest
income |
92 |
78 |
17.9% |
366 |
252 |
45.2% |
TOTAL INTEREST AND DIVIDEND INCOME |
9,275 |
9,337 |
-0.7% |
37,107 |
36,376 |
2.0% |
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Deposits |
848 |
1,036 |
-18.1% |
3,645 |
4,566 |
-20.2% |
Short-term borrowings |
37 |
45 |
-17.8% |
137 |
202 |
-32.2% |
Long-term borrowings, FHLB |
552 |
661 |
-16.5% |
2,429 |
2,888 |
-15.9% |
TOTAL INTEREST EXPENSE |
1,437 |
1,742 |
-17.5% |
6,211 |
7,656 |
-18.9% |
|
|
|
|
|
|
|
NET INTEREST INCOME |
7,838 |
7,595 |
3.2% |
30,896 |
28,720 |
7.6% |
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES |
725 |
900 |
-19.4% |
2,525 |
2,700 |
-6.5% |
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES |
7,113 |
6,695 |
6.2% |
28,371 |
26,020 |
9.0% |
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Service charges |
500 |
483 |
3.5% |
1,894 |
2,021 |
-6.3% |
Securities gains, net |
79 |
479 |
-83.5% |
1,285 |
621 |
106.9% |
Bank-owned life insurance |
131 |
138 |
-5.1% |
670 |
599 |
11.9% |
Gain on sale of loans |
333 |
280 |
18.9% |
1,386 |
1,130 |
22.7% |
Insurance commissions |
304 |
303 |
0.3% |
1,357 |
933 |
45.4% |
Brokerage commissions |
214 |
200 |
7.0% |
912 |
997 |
-8.5% |
Other |
724 |
528 |
37.1% |
2,596 |
1,918 |
35.3% |
TOTAL NON-INTEREST INCOME |
2,285 |
2,411 |
-5.2% |
10,100 |
8,219 |
22.9% |
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
2,956 |
2,751 |
7.5% |
11,762 |
10,479 |
12.2% |
Occupancy, net |
307 |
300 |
2.3% |
1,270 |
1,262 |
0.6% |
Furniture and equipment |
394 |
368 |
7.1% |
1,452 |
1,379 |
5.3% |
Pennsylvania shares tax |
169 |
173 |
-2.3% |
674 |
689 |
-2.2% |
Amortization of investments in limited
partnerships |
165 |
165 |
0.0% |
661 |
661 |
0.0% |
FDIC deposit insurance |
119 |
109 |
9.2% |
468 |
525 |
-10.9% |
Other |
1,648 |
1,286 |
28.1% |
5,736 |
4,969 |
15.4% |
TOTAL NON-INTEREST EXPENSE |
5,758 |
5,152 |
11.8% |
22,023 |
19,964 |
10.3% |
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX PROVISION |
3,640 |
3,954 |
-7.9% |
16,448 |
14,275 |
15.2% |
INCOME TAX PROVISION |
544 |
559 |
-2.7% |
2,598 |
1,913 |
35.8% |
NET INCOME |
$ 3,096 |
$ 3,395 |
-8.8% |
$ 13,850 |
$ 12,362 |
12.0% |
|
|
|
|
|
|
|
EARNINGS PER SHARE - BASIC |
$ 0.81 |
$ 0.88 |
-8.0% |
$ 3.61 |
$ 3.22 |
12.1% |
|
|
|
|
|
|
|
EARNINGS PER SHARE - DILUTED |
$ 0.81 |
$ 0.88 |
-8.0% |
$ 3.61 |
$ 3.22 |
12.1% |
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING -
BASIC |
3,838,290 |
3,836,802 |
0.0% |
3,837,751 |
3,836,036 |
0.0% |
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING -
DILUTED |
3,838,290 |
3,836,802 |
0.0% |
3,837,751 |
3,836,036 |
0.0% |
|
|
|
|
|
|
|
DIVIDENDS PER SHARE |
$ 0.47 |
$ 0.46 |
2.2% |
$ 1.88 |
$ 1.84 |
2.2% |
|
PENNS WOODS BANCORP,
INC. |
AVERAGE BALANCES AND
INTEREST RATES |
|
|
|
|
|
|
|
|
For the Three Months
Ended |
(Dollars in Thousands) |
December 31, 2012 |
December 31, 2011 |
|
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
ASSETS: |
|
|
|
|
|
|
Tax-exempt loans |
$ 22,171 |
$ 286 |
5.13% |
$ 20,119 |
$ 289 |
5.70% |
All other loans |
482,586 |
6,229 |
5.13% |
414,356 |
6,237 |
5.97% |
Total loans |
504,757 |
6,515 |
5.13% |
434,475 |
6,526 |
5.96% |
|
|
|
|
|
|
|
Taxable securities |
161,669 |
1,551 |
3.84% |
141,805 |
1,524 |
4.30% |
Tax-exempt securities |
132,624 |
1,973 |
5.95% |
123,960 |
2,098 |
6.77% |
Total securities |
294,293 |
3,524 |
4.79% |
265,765 |
3,622 |
5.45% |
|
|
|
|
|
|
|
Interest-bearing deposits |
2,514 |
4 |
0.63% |
645 |
-- |
0.00% |
|
|
|
|
|
|
|
Total interest-earning assets |
801,564 |
10,043 |
4.99% |
700,885 |
10,148 |
5.76% |
|
|
|
|
|
|
|
Other assets |
46,860 |
|
|
52,578 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ 848,424 |
|
|
$ 753,463 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
Savings |
$ 80,341 |
21 |
0.10% |
$ 70,725 |
23 |
0.13% |
Super Now deposits |
125,396 |
158 |
0.50% |
103,982 |
141 |
0.54% |
Money market deposits |
149,691 |
154 |
0.41% |
125,259 |
229 |
0.73% |
Time deposits |
172,334 |
515 |
1.19% |
173,931 |
643 |
1.47% |
Total interest-bearing deposits |
527,762 |
848 |
0.64% |
473,897 |
1,036 |
0.87% |
|
|
|
|
|
|
|
Short-term borrowings |
25,926 |
37 |
0.57% |
21,268 |
45 |
0.84% |
Long-term borrowings, FHLB |
71,821 |
552 |
3.01% |
64,245 |
661 |
4.03% |
Total borrowings |
97,747 |
589 |
2.36% |
85,513 |
706 |
3.23% |
|
|
|
|
|
|
|
Total interest-bearing liabilities |
625,509 |
1,437 |
0.91% |
559,410 |
1,742 |
1.23% |
|
|
|
|
|
|
|
Demand deposits |
116,314 |
|
|
105,607 |
|
|
Other liabilities |
10,736 |
|
|
8,562 |
|
|
Shareholders' equity |
95,865 |
|
|
79,884 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 848,424 |
|
|
$ 753,463 |
|
|
Interest rate spread |
|
|
4.08% |
|
|
4.53% |
Net interest income/margin |
|
$ 8,606 |
4.29% |
|
$ 8,406 |
4.78% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
2012 |
2011 |
|
|
|
Total interest income |
|
$ 9,275 |
$ 9,337 |
|
|
|
Total interest expense |
|
1,437 |
1,742 |
|
|
|
Net interest income |
|
7,838 |
7,595 |
|
|
|
Tax equivalent adjustment |
|
768 |
811 |
|
|
|
Net interest income (fully taxable
equivalent) |
|
$ 8,606 |
$ 8,406 |
|
|
|
|
PENNS WOODS BANCORP,
INC. |
AVERAGE BALANCES AND
INTEREST RATES |
|
|
|
|
|
|
|
|
For the Twelve Months
Ended |
(Dollars in Thousands) |
December 31, 2012 |
December 31, 2011 |
|
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
ASSETS: |
|
|
|
|
|
|
Tax-exempt loans |
$ 23,857 |
$ 1,195 |
5.01% |
$ 20,267 |
$ 1,213 |
5.99% |
All other loans |
446,569 |
24,583 |
5.50% |
405,391 |
24,386 |
6.02% |
Total loans |
470,426 |
25,778 |
5.48% |
425,658 |
25,599 |
6.01% |
|
|
|
|
|
|
|
Taxable securities |
158,765 |
6,298 |
3.97% |
130,647 |
5,926 |
4.54% |
Tax-exempt securities |
131,637 |
8,226 |
6.25% |
113,184 |
7,970 |
7.04% |
Total securities |
290,402 |
14,524 |
5.00% |
243,831 |
13,896 |
5.70% |
|
|
|
|
|
|
|
Interest-bearing deposits |
6,621 |
8 |
0.12% |
9,074 |
3 |
0.03% |
|
|
|
|
|
|
|
Total interest-earning assets |
767,449 |
40,310 |
5.25% |
678,563 |
39,498 |
5.82% |
|
|
|
|
|
|
|
Other assets |
49,070 |
|
|
53,207 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ 816,519 |
|
|
$ 731,770 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
Savings |
$ 78,724 |
65 |
0.08% |
$ 70,178 |
121 |
0.17% |
Super Now deposits |
118,515 |
610 |
0.51% |
88,556 |
473 |
0.53% |
Money market deposits |
145,339 |
734 |
0.51% |
121,458 |
1,063 |
0.88% |
Time deposits |
173,274 |
2,236 |
1.29% |
179,336 |
2,909 |
1.62% |
Total interest-bearing deposits |
515,852 |
3,645 |
0.71% |
459,528 |
4,566 |
0.99% |
|
|
|
|
|
|
|
Short-term borrowings |
20,961 |
137 |
0.65% |
18,117 |
202 |
1.11% |
Long-term borrowings, FHLB |
64,994 |
2,429 |
3.68% |
69,879 |
2,888 |
4.08% |
Total borrowings |
85,955 |
2,566 |
2.94% |
87,996 |
3,090 |
3.47% |
|
|
|
|
|
|
|
Total interest-bearing liabilities |
601,807 |
6,211 |
1.03% |
547,524 |
7,656 |
1.39% |
|
|
|
|
|
|
|
Demand deposits |
113,431 |
|
|
99,917 |
|
|
Other liabilities |
11,126 |
|
|
9,852 |
|
|
Shareholders' equity |
90,155 |
|
|
74,477 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 816,519 |
|
|
$ 731,770 |
|
|
Interest rate spread |
|
|
4.22% |
|
|
4.43% |
Net interest income/margin |
|
$ 34,099 |
4.45% |
|
$ 31,842 |
4.70% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months
Ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
2012 |
2011 |
|
|
|
Total interest income |
|
$ 37,107 |
$ 36,376 |
|
|
|
Total interest expense |
|
6,211 |
7,656 |
|
|
|
Net interest income |
|
30,896 |
28,720 |
|
|
|
Tax equivalent adjustment |
|
3,203 |
3,122 |
|
|
|
Net interest income (fully taxable
equivalent) |
|
$ 34,099 |
$ 31,842 |
|
|
|
|
|
|
Quarter
Ended |
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share
Data) |
12/31/2012 |
9/30/2012 |
6/30/2012 |
3/31/2012 |
12/31/2011 |
|
|
|
|
|
|
Operating Data |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 3,096 |
$ 3,667 |
$ 3,398 |
$ 3,689 |
$ 3,395 |
Net interest income |
7,838 |
7,690 |
7,698 |
7,670 |
7,595 |
Provision for loan losses |
725 |
600 |
600 |
600 |
900 |
Net security gains |
79 |
447 |
170 |
589 |
479 |
Non-interest income, ex. net
security gains |
2,206 |
2,324 |
2,111 |
2,174 |
1,932 |
Non-interest expense |
5,758 |
5,458 |
5,343 |
5,464 |
5,152 |
|
|
|
|
|
|
Performance Statistics |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
4.29% |
4.34% |
4.47% |
4.72% |
4.78% |
Annualized return on average
assets |
1.46% |
1.77% |
1.67% |
1.91% |
1.80% |
Annualized return on average
equity |
12.92% |
15.94% |
15.48% |
17.39% |
17.00% |
Annualized net loan charge-offs
to avg loans |
0.50% |
0.44% |
0.79% |
0.01% |
0.09% |
Net charge-offs |
629 |
517 |
907 |
9 |
101 |
Efficiency ratio |
57.3% |
54.5% |
54.5% |
55.5% |
54.1% |
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ 0.81 |
$ 0.96 |
$ 0.89 |
$ 0.96 |
$ 0.88 |
Diluted earnings per share |
0.81 |
0.96 |
0.89 |
0.96 |
0.88 |
Dividend declared per
share |
0.47 |
0.47 |
0.47 |
0.47 |
0.46 |
Book value |
24.42 |
24.43 |
22.96 |
22.22 |
20.97 |
Common stock price: |
|
|
|
|
|
High |
45.27 |
44.60 |
39.90 |
41.67 |
39.30 |
Low |
37.16 |
37.78 |
36.72 |
36.20 |
32.01 |
Close |
37.41 |
44.33 |
39.81 |
40.88 |
38.78 |
Weighted average common
shares: |
|
|
|
|
|
Basic |
3,838 |
3,838 |
3,838 |
3,837 |
3,837 |
Fully Diluted |
3,838 |
3,838 |
3,838 |
3,837 |
3,837 |
End-of-period common
shares: |
|
|
|
|
|
Issued |
4,019 |
4,019 |
4,018 |
4,018 |
4,018 |
Treasury |
181 |
181 |
181 |
181 |
181 |
|
|
|
Quarter
Ended |
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share
Data) |
12/31/2012 |
9/30/2012 |
6/30/2012 |
3/31/2012 |
12/31/2011 |
|
|
|
|
|
|
Financial Condition
Data: |
|
|
|
|
|
General |
|
|
|
|
|
Total assets |
$ 856,535 |
$ 840,606 |
$ 818,433 |
$ 793,114 |
$ 763,953 |
Loans, net |
504,615 |
477,530 |
457,904 |
435,832 |
428,805 |
Intangibles |
3,032 |
3,032 |
3,032 |
3,032 |
3,032 |
Total deposits |
642,026 |
641,110 |
641,167 |
621,542 |
581,664 |
Noninterest-bearing |
114,953 |
115,285 |
117,762 |
116,271 |
111,354 |
|
|
|
|
|
|
Savings |
82,546 |
81,479 |
81,479 |
77,253 |
71,646 |
NOW |
130,454 |
125,572 |
115,972 |
108,904 |
101,808 |
Money Market |
144,722 |
149,054 |
152,114 |
141,830 |
124,335 |
Time Deposits |
169,351 |
169,720 |
173,840 |
177,284 |
172,521 |
Total interest-bearing
deposits |
527,073 |
525,825 |
523,405 |
505,271 |
470,310 |
|
|
|
|
|
|
Core deposits* |
472,675 |
471,390 |
467,327 |
444,258 |
409,143 |
Shareholders' equity |
93,726 |
93,779 |
88,111 |
85,279 |
80,460 |
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets |
$ 11,706 |
$ 12,041 |
$ 8,725 |
$ 11,308 |
$ 12,009 |
Non-performing assets to total
assets |
1.37% |
1.43% |
1.07% |
1.43% |
1.57% |
Allowance for loan losses |
7,617 |
7,521 |
7,438 |
7,745 |
7,154 |
Allowance for loan losses to
total loans |
1.49% |
1.55% |
1.60% |
1.75% |
1.64% |
Allowance for loan losses
to non-performing loans |
65.07% |
62.46% |
85.25% |
68.49% |
59.57% |
Non-performing loans to total
loans |
2.29% |
2.48% |
1.87% |
2.55% |
2.75% |
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total
assets |
10.94% |
11.16% |
10.77% |
10.75% |
10.53% |
|
|
|
|
|
|
* 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 |
Twelve Months Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
2012 |
2011 |
GAAP net income |
$ 3,096 |
$ 3,395 |
$ 13,850 |
$ 12,362 |
Less: net securities and bank-owned life
insurance gains, net of tax |
52 |
316 |
957 |
410 |
Non-GAAP operating earnings |
$ 3,044 |
$ 3,079 |
$ 12,893 |
$ 11,952 |
|
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
2012 |
2011 |
Return on average assets (ROA) |
1.46% |
1.80% |
1.70% |
1.69% |
Less: net securities and bank-owned life
insurance gains, net of tax |
0.02% |
0.17% |
0.12% |
0.06% |
Non-GAAP operating ROA |
1.44% |
1.63% |
1.58% |
1.63% |
|
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
2012 |
2011 |
Return on average equity (ROE) |
12.92% |
17.00% |
15.36% |
16.60% |
Less: net securities and bank-owned life
insurance gains, net of tax |
0.22% |
1.58% |
1.06% |
0.55% |
Non-GAAP operating ROE |
12.70% |
15.42% |
14.30% |
16.05% |
|
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
2012 |
2011 |
Basic earnings per share (EPS) |
$ 0.81 |
$ 0.88 |
$ 3.61 |
$ 3.22 |
Less: net securities and bank-owned life
insurance gains, net of tax |
0.02 |
0.08 |
0.25 |
0.10 |
Non-GAAP basic operating EPS |
$ 0.79 |
$ 0.80 |
$ 3.36 |
$ 3.12 |
|
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
December 31, |
December 31, |
|
2012 |
2011 |
2012 |
2011 |
Dilutive EPS |
$ 0.81 |
$ 0.88 |
$ 3.61 |
$ 3.22 |
Less: net securities and bank-owned life
insurance gains, net of tax |
0.02 |
0.08 |
0.25 |
0.10 |
Non-GAAP dilutive operating EPS |
$ 0.79 |
$ 0.80 |
$ 3.36 |
$ 3.12 |
CONTACT: Richard A. Grafmyre, President and Chief Executive Officer
300 Market Street
Williamsport, PA 17701
570-322-1111 e-mail: jssb@jssb.com
Penns Woods Bancorp (NASDAQ:PWOD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Penns Woods Bancorp (NASDAQ:PWOD)
Historical Stock Chart
From Jul 2023 to Jul 2024