Penns Woods Bancorp, Inc. (Nasdaq:PWOD)
Penns Woods Bancorp, Inc. continued its strong earnings and
growth during the recently completed second quarter of 2013.
Earnings of $7,343,000 were achieved for the six month period
ending June 30, 2013 resulting in basic and dilutive earnings per
share of $1.84.
Highlights
- Completion of the acquisition of Luzerne National Bank
Corporation effective June 1, 2013 resulted in an increase in net
loans of $254,057,000; investments of $21,140,000; deposits of
$279,867,000; and assets of $329,209,000.
- 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 benefits, decreased to
$2,818,000 for the three months ended June 30, 2013 compared to
$3,286,000 for the same period of 2012. Net income from core
operations decreased to $5,851,000 for the six months ended June
30, 2013 compared to $6,477,000 for the same period of 2012.
- Operating earnings per share for the three months ended June
30, 2013 were $0.68 basic and dilutive compared to $0.86 basic and
dilutive for the same period of 2012. Operating earnings per share
for the six months ended June 30, 2013 were $1.46 basic and
dilutive compared to $1.69 basic and dilutive for the same period
of 2012.
- Return on average assets was 1.48% for the three months ended
June 30, 2013 compared to 1.67% for the corresponding period of
2012. Return on average assets was 1.59% for the six months ended
June 30, 2013 compared to 1.78% for the corresponding period of
2012.
- Return on average equity was 13.54% for the three months ended
June 30, 2013 compared to 15.48% for the corresponding period of
2012. Return on average equity was 14.45% for the six months ended
June 30, 2013 compared to 16.42% for the corresponding period of
2012.
- The results for the three and six months ended June 30, 2013
were negatively impacted by $535,000 and $623,000 in expenses
related to the acquisition of Luzerne National Bank
Corporation.
"The results for the three and six months ended June 30, 2013
have been impacted by the completed acquisition of Luzerne National
Bank Corporation into the Penns Woods Bancorp, Inc.
family. The acquisition not only resulted in a
significant increase in assets, loans, and deposits, but also more
than doubled the population residing within the counties we are
located. Access to the population base and businesses located
within Luzerne and Lackawanna Counties will allow us to continue
our strategic path of growing our balance sheet by acquiring high
quality earning assets funded by core deposit growth. In addition
to the completed acquisition, we continue to invest in revenue
streams for the future including planned branches in Lewisburg and
Loyalsock, the expansion of our residential secondary market
footprint, and growth in our commercial services department," 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 six months
ended June 30, 2013 was $3,659,000 and $7,343,000 compared to
$3,398,000 and $7,087,000 for the same period of 2012. Results
for the three and six months ended June 30, 2013 compared to 2012
were impacted by an increase in after-tax securities gains of
$729,000 (from a gain of $112,000 to a gain of $841,000) for the
three month periods and an increase in after-tax securities gains
of $991,000 (from a gain of $501,000 to a gain of $1,492,000) for
the six 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 six months ended June 30, 2013 was the recognition of
$535,000 and $623,000 in expenses related to the acquisition of
Luzerne National Bank Corporation. Basic and dilutive earnings
per share for the three and six months ended June 30, 2013 was
$0.88 and $1.84 compared to $0.89 and $1.85 for the corresponding
periods of 2012. Return on average assets and return on
average equity were 1.48% and 13.54% for the three months ended
June 30, 2013 compared to 1.67% and 15.48% for the corresponding
period of 2012. Return on average assets and return on average
equity were 1.59% and 14.45% for the six months ended June 30, 2013
compared to 1.78% and 16.42% for the corresponding period of
2012.
Net Interest Margin
The net interest margin for the three and six months ended June
30, 2013 was 4.09% and 4.26% compared to 4.47% and 4.59% for the
corresponding periods of 2012. While the net interest margin
has decreased year over year, net interest income on a fully
taxable equivalent basis has increased $927,000 and $1,369,000 for
the three and six months ended June 30, 2013 compared to the
corresponding period of 2012. Driving this increase is the
growth in the loan and deposit portfolios for the six months ended
June 30, 2013 compared to the corresponding period for 2012
primarily due to the acquisition of Luzerne National Bank
Corporation, growth in home equity products, recognition of
$528,000 in loan interest from the payoff of a nonaccrual loan in
the first quarter of 2013, and the continued emphasis on core
deposit growth. The primary funding for the loan growth was an
increase in core deposits. These deposits represent a lower
cost funding source than time deposits and comprise 75.03% of total
deposits at June 30, 2013 compared to 72.89% at June 30,
2012. The continued growth in core deposits has led to the
total cost of deposits decreasing to 54 bp for the six months ended
June 30, 2013 from 75 bp for the corresponding period of 2012.
FHLB long-term borrowings have been increased by $9,472,000
since June 30, 2012 to supplement the deposit funding of loan
growth and FHLB debt that matured. Long-term borrowings of
$5,528,000 matured during the six months ended June 30, 2013
carrying an average rate of 3.94%. The changes in the
composition of the deposit and borrowing portfolios has led to the
total cost of interest bearing funding decreasing to 77 bp for the
six months ended June 30, 2013 from 109 bp at the corresponding
period of 2012.
"As seen in the compression of the net interest margin, the
margin has and will continue to encounter challenges as we move
forward in the current rate environment. We continue to follow our
strategic direction to add quality earning assets, even though
these new earning assets are being added are at a lower rate than
the legacy earning assets that are maturing or are repricing lower
at their rate reset dates. Efforts are being undertaken to
shorten the investment portfolio duration in order to reduce
interest rate and market risk in the future. This is being
undertaken primarily through purchases of variable rate and
intermediate term corporate bonds. The earning asset
strategies do limit current earnings, but they play a key role in
our long-term asset liability management strategy. On the
funding side of the balance sheet there is limited opportunity to
reduce costs. Our focus will continue to be on
lower cost core deposits, with an eye toward the lengthening of
select funding sources as opportunities are presented," commented
President Grafmyre.
Assets
Total assets increased $388,525,000 to $1,206,958,000 at June
30, 2013 compared to June 30, 2012. Net loans increased to
$777,557,000 at June 30, 2013 compared to June 30, 2012 due to the
acquisition of Luzerne National Bank Corporation and campaigns
related to increasing home equity product market share during 2012
and 2013. The investment portfolio increased $16,168,000 from
June 30, 2012 to June 30, 2013 due primarily to the acquisition of
Luzerne National Bank Corporation and the purchase of short
maturity bonds that have been utilized to reduce the portfolio
duration and to provide current cash flow. In addition, we
continue to follow our strategy to reduce the investment portfolio
duration through the selective selling of bonds as opportunities
develop.
Non-performing Loans
Our non-performing loans to total loans ratio has decreased to
0.83% at June 30, 2013 from 1.87% at June 30, 2012. The
decrease in non-performing loans is primarily the result of several
partial charge-offs and the payoff of a large construction loan
that was on nonaccrual. 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 recoveries of $712,000 for
the six months ended June 30, 2013 augmented the allowance for loan
losses which was 1.19% of total loans at June 30, 2013.
Deposits
Deposits have increased $314,194,000 to $955,361,000 at June 30,
2013 compared to June 30, 2012, with core deposits (total deposits
excluding time deposits) increasing $249,484,000, while higher cost
time deposits only increased $64,710,000. Noninterest-bearing
deposits have increased $93,334,000 to $211,096,000 at June 30,
2013 compared to June 30, 2012. Driving this growth is our
acquisition of Luzerne National Bank Corporation in addition to 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.
Shareholders' Equity
Shareholders' equity increased $37,817,000 to $125,928,000 at
June 30, 2013 compared to June 30, 2012. The accumulated
other comprehensive loss of $4,521,000 at June 30, 2013 is a result
of a decrease in unrealized gains on available for sale securities
from an unrealized gain of $7,058,000 at June 30, 2012 to an
unrealized gain of $286,000 at June 30, 2013. The amount of
accumulated other comprehensive loss at June 30, 2013 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 June 30, 2013. The current level of
shareholders' equity equates to a book value per share of $26.14 at
June 30, 2013 compared to $22.96 at June 30, 2012 and an equity to
asset ratio of 10.43% at June 30, 2013 compared to 10.77% at June
30, 2012. Excluding goodwill and intangibles, book value per
share was $22.17 at June 30, 2013 compared to $22.17 at June 30,
2012. Dividends declared for the three and six months ended
June 30, 2013 were $0.47 and $1.19 per share, which includes a
special cash dividend of $0.25 per share declared in the first
quarter 2013, compared to $0.47 and $0.94 for the three and six
months ended June 30, 2012.
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, and Luzerne Bank, which operates nine branch offices
providing financial services in Luzerne and Lackawanna
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, 2012.
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) |
June 30, |
| |
2013 |
2012 |
% Change |
| ASSETS |
|
|
|
| Noninterest-bearing balances |
$ 26,888 |
$ 16,052 |
67.51% |
| Interest-bearing deposits in other financial
institutions |
1,417 |
21 |
6647.62% |
| Total cash and cash equivalents |
28,305 |
16,073 |
76.10% |
| |
|
|
|
| Federal funds sold |
134 |
-- |
n/a |
| Investment securities, available for sale, at
fair value |
311,289 |
295,121 |
5.48% |
| Loans held for sale |
5,409 |
3,496 |
54.72% |
| Loans |
786,961 |
465,342 |
69.11% |
| Allowance for loan losses |
(9,404) |
(7,438) |
26.43% |
| Loans, net |
777,557 |
457,904 |
69.81% |
| Premises and equipment, net |
17,101 |
8,229 |
107.81% |
| Accrued interest receivable |
4,999 |
4,071 |
22.80% |
| Bank-owned life insurance |
25,022 |
16,101 |
55.41% |
| Investment in limited partnerships |
2,552 |
3,213 |
-20.57% |
| Goodwill |
17,104 |
3,032 |
464.12% |
| Intangibles |
1,984 |
-- |
n/a |
| Deferred tax asset |
9,906 |
5,960 |
66.21% |
| Other assets |
5,596 |
5,233 |
6.94% |
| TOTAL ASSETS |
$ 1,206,958 |
$ 818,433 |
47.47% |
| |
|
|
|
| LIABILITIES |
|
|
|
| Interest-bearing deposits |
$ 744,265 |
$ 523,405 |
42.20% |
| Noninterest-bearing deposits |
211,096 |
117,762 |
79.26% |
| Total deposits |
955,361 |
641,167 |
49.00% |
| |
|
|
|
| Short-term borrowings |
39,000 |
17,855 |
118.43% |
| Long-term borrowings, Federal Home Loan Bank
(FHLB) |
70,750 |
61,278 |
15.46% |
| Accrued interest payable |
442 |
490 |
-9.80% |
| Other liabilities |
15,477 |
9,532 |
62.37% |
| TOTAL LIABILITIES |
1,081,030 |
730,322 |
48.02% |
| |
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
| Preferred stock, no par value, 3,000,000
shares authorized; no shares issued |
-- |
-- |
n/a |
| Common stock, par value $8.33, 15,000,000
shares authorized; |
|
|
|
| 4,998,881 and 4,018,386 shares issued |
41,657 |
33,486 |
24.40% |
| Additional paid-in capital |
49,759 |
18,136 |
174.37% |
| Retained earnings |
45,343 |
39,874 |
13.72% |
| Accumulated other comprehensive (loss)
income: |
|
|
|
| Net unrealized gain on available for sale
securities |
286 |
7,058 |
-95.95% |
| Defined benefit plan |
(4,807) |
(4,133) |
-16.31% |
| Treasury stock at cost, 180,596 shares |
(6,310) |
(6,310) |
0.00% |
| TOTAL SHAREHOLDERS' EQUITY |
125,928 |
88,111 |
42.92% |
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 1,206,958 |
$ 818,433 |
47.47% |
| |
|
|
|
| |
|
|
|
|
|
|
| PENNS WOODS BANCORP,
INC. |
| CONSOLIDATED STATEMENT
OF INCOME |
|
(UNAUDITED) |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| (In Thousands, Except Per Share Data) |
Three Months Ended |
Six Months Ended |
| |
June 30, |
June 30, |
| |
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
| INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
| Loans including fees |
$ 7,277 |
$ 6,294 |
15.62% |
$ 14,045 |
$ 12,608 |
11.40% |
| Investment securities: |
|
|
|
|
|
|
| Taxable |
1,507 |
1,517 |
-0.66% |
2,950 |
2,991 |
-1.37% |
| Tax-exempt |
1,162 |
1,383 |
-15.98% |
2,429 |
2,788 |
-12.88% |
| Dividend and other interest income |
72 |
86 |
-16.28% |
134 |
178 |
-24.72% |
| TOTAL INTEREST AND DIVIDEND INCOME |
10,018 |
9,280 |
7.95% |
19,558 |
18,565 |
5.35% |
| |
|
|
|
|
|
|
| INTEREST EXPENSE: |
|
|
|
|
|
|
| Deposits |
760 |
934 |
-18.63% |
1,551 |
1,895 |
-18.15% |
| Short-term borrowings |
22 |
28 |
-21.43% |
47 |
62 |
-24.19% |
| Long-term borrowings, FHLB |
482 |
620 |
-22.26% |
1,001 |
1,240 |
-19.27% |
| TOTAL INTEREST EXPENSE |
1,264 |
1,582 |
-20.10% |
2,599 |
3,197 |
-18.71% |
| |
|
|
|
|
|
|
| NET INTEREST INCOME |
8,754 |
7,698 |
13.72% |
16,959 |
15,368 |
10.35% |
| |
|
|
|
|
|
|
| PROVISION FOR LOAN LOSSES |
575 |
600 |
-4.17% |
1,075 |
1,200 |
-10.42% |
| |
|
|
|
|
|
|
| NET INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES |
8,179 |
7,098 |
15.23% |
15,884 |
14,168 |
12.11% |
| |
|
|
|
|
|
|
| NON-INTEREST INCOME: |
|
|
|
|
|
|
| Service charges |
538 |
458 |
17.47% |
980 |
905 |
8.29% |
| Securities gains, net |
1,274 |
170 |
649.41% |
2,260 |
759 |
197.76% |
| Bank-owned life insurance |
144 |
133 |
8.27% |
282 |
401 |
-29.68% |
| Gain on sale of loans |
302 |
343 |
-11.95% |
653 |
526 |
24.14% |
| Insurance commissions |
247 |
316 |
-21.84% |
511 |
758 |
-32.59% |
| Brokerage commissions |
299 |
247 |
21.05% |
547 |
459 |
19.17% |
| Other |
731 |
614 |
19.06% |
1,035 |
1,236 |
-16.26% |
| TOTAL NON-INTEREST INCOME |
3,535 |
2,281 |
54.98% |
6,268 |
5,044 |
24.27% |
| |
|
|
|
|
|
|
| NON-INTEREST EXPENSE: |
|
|
|
|
|
|
| Salaries and employee benefits |
3,442 |
2,850 |
20.77% |
6,510 |
5,867 |
10.96% |
| Occupancy |
397 |
318 |
24.84% |
748 |
646 |
15.79% |
| Furniture and equipment |
412 |
357 |
15.41% |
820 |
703 |
16.64% |
| Pennsylvania shares tax |
208 |
167 |
24.55% |
392 |
336 |
16.67% |
| Amortization of investments in limited
partnerships |
166 |
166 |
0.00% |
331 |
331 |
0.00% |
| FDIC deposit insurance |
119 |
115 |
3.48% |
248 |
238 |
4.20% |
| Marketing |
120 |
140 |
-14.29% |
215 |
273 |
-21.25% |
| Intangible amortization |
31 |
-- |
n/a |
31 |
-- |
n/a |
| Other |
2,070 |
1,230 |
68.29% |
3,521 |
2,413 |
45.92% |
| TOTAL NON-INTEREST EXPENSE |
6,965 |
5,343 |
30.36% |
12,816 |
10,807 |
18.59% |
| |
|
|
|
|
|
|
| INCOME BEFORE INCOME TAX PROVISION |
4,749 |
4,036 |
17.67% |
9,336 |
8,405 |
11.08% |
| INCOME TAX PROVISION |
1,090 |
638 |
70.85% |
1,993 |
1,318 |
51.21% |
| NET INCOME |
$ 3,659 |
$ 3,398 |
7.68% |
$ 7,343 |
$ 7,087 |
3.61% |
| |
|
|
|
|
|
|
| EARNINGS PER SHARE - BASIC |
$ 0.88 |
$ 0.89 |
-1.12% |
$ 1.84 |
$ 1.85 |
-0.54% |
| |
|
|
|
|
|
|
| EARNINGS PER SHARE - DILUTED |
$ 0.88 |
$ 0.89 |
-1.12% |
$ 1.84 |
$ 1.85 |
-0.54% |
| |
|
|
|
|
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING -
BASIC |
4,151,035 |
3,837,579 |
8.17% |
3,995,716 |
3,837,391 |
4.13% |
| |
|
|
|
|
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING -
DILUTED |
4,151,035 |
3,837,579 |
8.17% |
3,995,716 |
3,837,391 |
4.13% |
| |
|
|
|
|
|
|
| DIVIDENDS DECLARED PER SHARE |
$ 0.47 |
$ 0.47 |
0.00% |
$ 1.19 |
$ 0.94 |
26.60% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| PENNS WOODS BANCORP,
INC. |
| AVERAGE BALANCES AND
INTEREST RATES |
| |
|
|
|
|
|
|
| |
For the Three Months
Ended |
| (Dollars in Thousands) |
June 30, 2013 |
June 30, 2012 |
| |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
| ASSETS: |
|
|
|
|
|
|
| Tax-exempt loans |
$ 21,480 |
$ 249 |
4.65% |
$ 21,621 |
$ 298 |
5.54% |
| All other loans |
596,206 |
7,113 |
4.79% |
435,918 |
6,097 |
5.63% |
| Total loans |
617,686 |
7,362 |
4.78% |
457,539 |
6,395 |
5.62% |
| |
|
|
|
|
|
|
| Federal funds sold |
98 |
-- |
0.00% |
-- |
-- |
0.00% |
| |
|
|
|
|
|
|
| Taxable securities |
178,827 |
1,573 |
3.52% |
163,294 |
1,601 |
3.92% |
| Tax-exempt securities |
119,655 |
1,761 |
5.89% |
130,313 |
2,095 |
6.43% |
| Total securities |
298,482 |
3,334 |
4.47% |
293,607 |
3,696 |
5.04% |
| |
|
|
|
|
|
|
| Interest-bearing deposits |
8,339 |
6 |
0.29% |
13,285 |
2 |
0.06% |
| |
|
|
|
|
|
|
| Total interest-earning assets |
924,605 |
10,702 |
4.64% |
764,431 |
10,093 |
5.30% |
| |
|
|
|
|
|
|
| Other assets |
65,956 |
|
|
50,251 |
|
|
| |
|
|
|
|
|
|
| TOTAL ASSETS |
$ 990,561 |
|
|
$ 814,682 |
|
|
| |
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
| Savings |
$ 107,027 |
27 |
0.10% |
$ 79,465 |
16 |
0.08% |
| Super Now deposits |
149,635 |
171 |
0.46% |
120,066 |
153 |
0.51% |
| Money market deposits |
172,228 |
129 |
0.30% |
152,858 |
202 |
0.53% |
| Time deposits |
191,046 |
433 |
0.91% |
172,431 |
563 |
1.31% |
| Total interest-bearing deposits |
619,936 |
760 |
0.49% |
524,820 |
934 |
0.72% |
| |
|
|
|
|
|
|
| Short-term borrowings |
21,777 |
22 |
0.40% |
17,222 |
28 |
0.65% |
| Long-term borrowings, FHLB |
71,237 |
482 |
2.68% |
61,278 |
620 |
4.00% |
| Total borrowings |
93,014 |
504 |
2.14% |
78,500 |
648 |
3.27% |
| |
|
|
|
|
|
|
| Total interest-bearing liabilities |
712,950 |
1,264 |
0.71% |
603,320 |
1,582 |
1.05% |
| |
|
|
|
|
|
|
| Demand deposits |
153,840 |
|
|
112,683 |
|
|
| Other liabilities |
15,652 |
|
|
10,889 |
|
|
| Shareholders' equity |
108,120 |
|
|
87,790 |
|
|
| |
|
|
|
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 990,562 |
|
|
$ 814,682 |
|
|
| Interest rate spread |
|
|
3.93% |
|
|
4.25% |
| Net interest income/margin |
|
$ 9,438 |
4.09% |
|
$ 8,511 |
4.47% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
For the Three Months Ended |
|
|
|
| |
|
June 30, |
|
|
|
| |
|
2013 |
2012 |
|
|
|
| Total interest income |
|
$ 10,018 |
$ 9,280 |
|
|
|
| Total interest expense |
|
1,264 |
1,582 |
|
|
|
| Net interest income |
|
8,754 |
7,698 |
|
|
|
| Tax equivalent adjustment |
|
684 |
813 |
|
|
|
| Net interest income (fully taxable
equivalent) |
|
$ 9,438 |
$ 8,511 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| PENNS WOODS BANCORP,
INC. |
| AVERAGE BALANCES AND
INTEREST RATES |
| |
|
|
|
|
|
|
| |
For the Six Months
Ended |
| (Dollars in Thousands) |
June 30, 2013 |
June 30, 2012 |
| |
Average Balance |
Interest |
Average Rate |
Average Balance |
Interest |
Average Rate |
| ASSETS: |
|
|
|
|
|
|
| Tax-exempt loans |
$ 21,860 |
$ 498 |
4.59% |
$ 21,574 |
$ 607 |
5.66% |
| All other loans |
546,033 |
13,716 |
5.07% |
429,040 |
12,207 |
5.72% |
| Total loans |
567,893 |
14,214 |
5.05% |
450,614 |
12,814 |
5.72% |
| |
|
|
|
|
|
|
| Federal funds sold |
49 |
-- |
0.00% |
-- |
-- |
0.00% |
| |
|
|
|
|
|
|
| Taxable securities |
170,226 |
3,076 |
3.61% |
155,247 |
3,167 |
4.08% |
| Tax-exempt securities |
123,543 |
3,680 |
5.96% |
130,452 |
4,224 |
6.48% |
| Total securities |
293,769 |
6,756 |
4.60% |
285,699 |
7,391 |
5.17% |
| |
|
|
|
|
|
|
| Interest-bearing deposits |
6,024 |
8 |
0.27% |
7,660 |
2 |
0.05% |
| |
|
|
|
|
|
|
| Total interest-earning assets |
867,735 |
20,978 |
4.86% |
743,973 |
20,207 |
5.45% |
| |
|
|
|
|
|
|
| Other assets |
57,369 |
|
|
50,517 |
|
|
| |
|
|
|
|
|
|
| TOTAL ASSETS |
$ 925,104 |
|
|
$ 794,490 |
|
|
| |
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
| Savings |
$ 95,848 |
52 |
0.11% |
$ 76,546 |
27 |
0.07% |
| Super Now deposits |
143,509 |
344 |
0.48% |
114,218 |
295 |
0.52% |
| Money market deposits |
158,374 |
264 |
0.34% |
140,122 |
407 |
0.58% |
| Time deposits |
181,443 |
891 |
0.99% |
174,754 |
1,166 |
1.34% |
| Total interest-bearing deposits |
579,174 |
1,551 |
0.54% |
505,640 |
1,895 |
0.75% |
| |
|
|
|
|
|
|
| Short-term borrowings |
21,574 |
47 |
0.44% |
19,640 |
62 |
0.63% |
| Long-term borrowings, FHLB |
73,550 |
1,001 |
2.71% |
61,278 |
1,240 |
4.00% |
| Total borrowings |
95,124 |
1,048 |
2.19% |
80,918 |
1,302 |
3.18% |
| |
|
|
|
|
|
|
| Total interest-bearing liabilities |
674,298 |
2,599 |
0.77% |
586,558 |
3,197 |
1.09% |
| |
|
|
|
|
|
|
| Demand deposits |
135,035 |
|
|
110,382 |
|
|
| Other liabilities |
14,164 |
|
|
11,216 |
|
|
| Shareholders' equity |
101,607 |
|
|
86,334 |
|
|
| |
|
|
|
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 925,104 |
|
|
$ 794,490 |
|
|
| Interest rate spread |
|
|
4.09% |
|
|
4.36% |
| Net interest income/margin |
|
$ 18,379 |
4.26% |
|
$ 17,010 |
4.59% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
For the Six Months Ended |
|
|
|
| |
|
June 30, |
|
|
|
| |
|
2013 |
2012 |
|
|
|
| Total interest income |
|
$ 19,558 |
$ 18,565 |
|
|
|
| Total interest expense |
|
2,599 |
3,197 |
|
|
|
| Net interest income |
|
16,959 |
15,368 |
|
|
|
| Tax equivalent adjustment |
|
1,420 |
1,642 |
|
|
|
| Net interest income (fully taxable
equivalent) |
|
$ 18,379 |
$ 17,010 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Quarter
Ended |
| |
|
|
|
|
|
| (Dollars in Thousands, Except Per Share
Data) |
6/30/2013 |
3/31/2013 |
12/31/2012 |
9/30/2012 |
6/30/2012 |
| |
|
|
|
|
|
| Operating Data |
|
|
|
|
|
| Net income |
$ 3,659 |
$ 3,684 |
$ 3,096 |
$ 3,667 |
$ 3,398 |
| Net interest income |
8,754 |
8,205 |
7,838 |
7,690 |
7,698 |
| Provision for loan losses |
575 |
500 |
725 |
600 |
600 |
| Net security gains |
1,274 |
986 |
79 |
447 |
170 |
| Non-interest income, ex. net security
gains |
2,261 |
1,747 |
2,206 |
2,324 |
2,111 |
| Non-interest expense |
6,965 |
5,851 |
5,758 |
5,458 |
5,343 |
| |
|
|
|
|
|
| Performance Statistics |
|
|
|
|
|
| Net interest margin |
4.09% |
4.46% |
4.29% |
4.34% |
4.47% |
| Annualized return on average assets |
1.48% |
1.72% |
1.46% |
1.77% |
1.67% |
| Annualized return on average equity |
13.54% |
15.51% |
12.92% |
15.94% |
15.48% |
| Annualized net loan charge-offs
(recoveries) to average loans |
0.00% |
-0.55% |
0.50% |
0.44% |
0.79% |
| Net charge-offs (recoveries) |
1 |
(713) |
629 |
517 |
907 |
| Efficiency ratio |
63.2% |
58.8% |
57.3% |
54.5% |
54.5% |
| |
|
|
|
|
|
| Per Share Data |
|
|
|
|
|
| Basic earnings per share |
$ 0.88 |
$ 0.96 |
$ 0.81 |
$ 0.96 |
$ 0.89 |
| Diluted earnings per share |
0.88 |
0.96 |
0.81 |
0.96 |
0.89 |
| Dividend declared per share |
0.47 |
0.72 |
0.47 |
0.47 |
0.47 |
| Book value |
26.14 |
24.23 |
24.42 |
24.43 |
22.96 |
| Common stock price: |
|
|
|
|
|
| High |
41.86 |
41.45 |
45.27 |
44.60 |
39.90 |
| Low |
39.44 |
38.50 |
37.16 |
37.78 |
36.72 |
| Close |
41.86 |
40.97 |
37.41 |
44.33 |
39.81 |
| Weighted average common shares: |
|
|
|
|
|
| Basic |
4,151 |
3,839 |
3,838 |
3,838 |
3,838 |
| Fully Diluted |
4,151 |
3,839 |
3,838 |
3,838 |
3,838 |
| End-of-period common shares: |
|
|
|
|
|
| Issued |
4,999 |
4,020 |
4,019 |
4,019 |
4,018 |
| Treasury |
181 |
181 |
181 |
181 |
181 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Quarter
Ended |
| |
|
|
|
|
|
| (Dollars in Thousands, Except Per Share
Data) |
6/30/2013 |
3/31/2013 |
12/31/2012 |
9/30/2012 |
6/30/2012 |
| |
|
|
|
|
|
| Financial Condition
Data: |
|
|
|
|
|
| General |
|
|
|
|
|
| Total assets |
$ 1,206,958 |
$ 852,997 |
$ 856,535 |
$ 840,606 |
$ 818,433 |
| Loans, net |
777,557 |
503,592 |
504,615 |
477,530 |
457,904 |
| Goodwill |
17,104 |
3,032 |
3,032 |
3,032 |
3,032 |
| Intangibles |
1,984 |
-- |
-- |
-- |
-- |
| Total deposits |
955,361 |
659,304 |
642,026 |
641,110 |
641,167 |
| Noninterest-bearing |
211,096 |
120,471 |
114,953 |
115,285 |
117,762 |
| |
|
|
|
|
|
| Savings |
140,667 |
86,556 |
82,546 |
81,479 |
81,479 |
| NOW |
161,972 |
140,626 |
130,454 |
125,572 |
115,972 |
| Money Market |
203,076 |
143,847 |
144,722 |
149,054 |
152,114 |
| Time Deposits |
238,550 |
167,804 |
169,351 |
169,720 |
173,840 |
| Total interest-bearing
deposits |
744,265 |
538,833 |
527,073 |
525,825 |
523,405 |
| |
|
|
|
|
|
| Core deposits* |
716,811 |
491,500 |
472,675 |
471,390 |
467,327 |
| Shareholders' equity |
125,928 |
93,013 |
93,726 |
93,779 |
88,111 |
| |
|
|
|
|
|
| Asset Quality |
|
|
|
|
|
| |
|
|
|
|
|
| Non-performing assets |
$ 6,515 |
$ 9,059 |
$ 11,706 |
$ 12,041 |
$ 8,725 |
| Non-performing assets to total
assets |
0.54% |
1.06% |
1.37% |
1.43% |
1.07% |
| Allowance for loan losses |
9,404 |
8,830 |
7,617 |
7,521 |
7,438 |
| Allowance for loan losses to total
loans |
1.19% |
1.72% |
1.49% |
1.55% |
1.60% |
| Allowance for loan losses to
non-performing loans |
144.34% |
97.47% |
65.07% |
62.46% |
85.25% |
| Non-performing loans to total loans |
0.83% |
1.77% |
2.29% |
2.48% |
1.87% |
| |
|
|
|
|
|
| Capitalization |
|
|
|
|
|
| |
|
|
|
|
|
| Shareholders' equity to total assets |
10.43% |
10.90% |
10.94% |
11.16% |
10.77% |
| |
|
|
|
|
|
| * 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 |
Six Months Ended |
| |
June 30, |
June 30, |
| |
2013 |
2012 |
2013 |
2012 |
| GAAP net income |
$ 3,659 |
$ 3,398 |
$ 7,343 |
$ 7,087 |
| Less: net securities and bank-owned life
insurance gains, net of tax |
841 |
112 |
1,492 |
610 |
| Non-GAAP operating earnings |
$ 2,818 |
$ 3,286 |
$ 5,851 |
$ 6,477 |
| |
|
|
|
|
| |
Three Months Ended |
Six Months Ended |
| |
June 30, |
June 30, |
| |
2013 |
2012 |
2013 |
2012 |
| Return on average assets (ROA) |
1.48% |
1.67% |
1.59% |
1.78% |
| Less: net securities and bank-owned life
insurance gains, net of tax |
0.34% |
0.06% |
0.33% |
0.15% |
| Non-GAAP operating ROA |
1.14% |
1.61% |
1.26% |
1.63% |
| |
|
|
|
|
| |
Three Months Ended |
Six Months Ended |
| |
June 30, |
June 30, |
| |
2013 |
2012 |
2013 |
2012 |
| Return on average equity (ROE) |
13.54% |
15.48% |
14.45% |
16.42% |
| Less: net securities and bank-owned life
insurance gains, net of tax |
3.11% |
0.51% |
2.93% |
1.42% |
| Non-GAAP operating ROE |
10.43% |
14.97% |
11.52% |
15.00% |
| |
|
|
|
|
| |
Three Months Ended |
Six Months Ended |
| |
June 30, |
June 30, |
| |
2013 |
2012 |
2013 |
2012 |
| Basic earnings per share (EPS) |
$ 0.88 |
$ 0.89 |
$ 1.84 |
$ 1.85 |
| Less: net securities and bank-owned life
insurance gains, net of tax |
0.20 |
0.03 |
0.38 |
0.16 |
| Non-GAAP basic operating EPS |
$ 0.68 |
$ 0.86 |
$ 1.46 |
$ 1.69 |
| |
|
|
|
|
| |
Three Months Ended |
Six Months Ended |
| |
June 30, |
June 30, |
| |
2013 |
2012 |
2013 |
2012 |
| Dilutive EPS |
$ 0.88 |
$ 0.89 |
$ 1.84 |
$ 1.85 |
| Less: net securities and bank-owned life
insurance gains, net of tax |
0.20 |
0.03 |
0.38 |
0.16 |
| Non-GAAP dilutive operating EPS |
$ 0.68 |
$ 0.86 |
$ 1.46 |
$ 1.69 |
| |
|
|
|
|
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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