Penns Woods Bancorp, Inc. (Nasdaq:PWOD)
Penns Woods Bancorp, Inc. continued its solid earnings and
growth during the recently completed fourth quarter of 2013,
achieving net income of $14,084,000 for the twelve months ended
December 31, 2013 resulting in basic and dilutive earnings per
share of $3.19.
Highlights
- Completion of the acquisition of Luzerne National Bank
Corporation ("Luzerne") 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 at the time of
acquisition.
- 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, increased to
$3,389,000 for the three months ended December 31, 2013 compared to
$3,044,000 for the same period of 2012. Net income from core
operations decreased to $12,489,000 for the twelve months ended
December 31, 2013 compared to $12,893,000 for the same period of
2012.
- Operating earnings per share for the three months ended
December 31, 2013 were $0.70 basic and dilutive compared to $0.79
basic and dilutive for the same period of 2012. Operating earnings
per share for the twelve months ended December 31, 2013 were $2.83
basic and dilutive compared to $3.36 basic and dilutive for the
same period of 2012.
- Return on average assets was 1.16% for the three months ended
December 31, 2013 compared to 1.46% for the corresponding period of
2012. Return on average assets was 1.32% for the twelve months
ended December 31, 2013 compared to 1.70% for the corresponding
period of 2012.
- Return on average equity was 10.99% for the three months ended
December 31, 2013 compared to 12.92% for the corresponding period
of 2012. Return on average equity was 12.36% for the twelve months
ended December 31, 2013 compared to 15.36% for the corresponding
period of 2012.
- The results for the twelve months ended December 31, 2013 were
negatively impacted by one time expenses of $1,307,000 related to
the acquisition of Luzerne National Bank Corporation.
"The twelve months ended December 31, 2013 were impacted by the
acquisition of Luzerne National Bank Corporation. While the
acquisition was a key driver of balance sheet growth, it was a drag
on earnings due to the one-time charges related to the acquisition.
With these charges behind us, we will continue to focus on the
continued integration of Luzerne into the Penns Woods family. We
also remain focused on building future revenue streams, with the
current construction of a branch in Loyalsock scheduled to be
completed during the first half of 2014. In addition, the ground
breaking for a branch in Lewisburg is expected to occur during the
early part of 2014," 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, 2013 was $3,495,000 and $14,084,000
compared to $3,096,000 and $13,850,000 for the same period of 2012.
Results for the three and twelve months ended December 31, 2013
compared to 2012 were impacted by an increase in after-tax
securities gains of $54,000 (from a gain of $52,000 to a gain of
$106,000) for the three months ended and an increase in after-tax
securities gains of $747,000 (from a gain of $848,000 to a gain of
$1,595,000) for the twelve months ended. 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 twelve months ended December 31, 2013 was the recognition
of $1,307,000 in expenses related to the acquisition of Luzerne.
Basic and dilutive earnings per share for the three and twelve
months ended December 31, 2013 were $0.73 and $3.19 compared to
$0.81 and $3.61 for the corresponding periods of 2012. Return on
average assets and return on average equity were 1.16% and 10.99%
for the three months ended December 31, 2013 compared to 1.46% and
12.92% for the corresponding period of 2012. Return on average
assets and return on average equity were 1.32% and 12.36% for the
twelve months ended December 31, 2013 compared to 1.70% and 15.36%
for the corresponding period of 2012.
Net Interest Margin
The net interest margin for the three and twelve months ended
December 31, 2013 was 3.98% and 4.13% compared to 4.29% and 4.45%
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 $2,482,000 and $6,666,000
for the three and twelve months ended December 31, 2013 compared to
the corresponding period of 2012. Driving this increase is the
growth in the loan and deposit portfolios for the twelve months
ended December 31, 2013 compared to the corresponding period for
2012 primarily due to the acquisition of Luzerne, 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 75.83% of total deposits at December 31, 2013 compared to
73.62% at December 31, 2012. The continued growth in core deposits
has led to the total cost of deposits decreasing to 48 bp for the
twelve months ended December 31, 2013 from 71 bp for the
corresponding period of 2012. FHLB long-term borrowings have
decreased $5,528,000 since December 31, 2012. The decrease is due
to the maturity of $5,528,000 in long-term borrowings during the
twelve months ended December 31, 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 69 bp for the twelve months ended December 31, 2013
from 103 bp at the corresponding period of 2012.
"Mitigation of the continued compressing net interest margin
remains one of our top priorities. Our focus on increasing earning
assets by adding quality loans, even though these new earning
assets are lower rate than legacy assets, remains steadfast. Many
of the loans being added are short and intermediate in term, such
as home equity products. We continue to actively manage the
investment portfolio in order to reduce interest rate and market
risk. This is being undertaken primarily through the sale of
long-term municipal bonds that have a maturity date of 2025 or
later and securities with a call date within the next five years.
The efforts to sell municipal bonds have been tempered as the
municipal bond market remains soft on longer maturity issues. The
proceeds of the bond sales are being deployed into loans and
variable rate intermediate term corporate bonds and short and
intermediate term municipal bonds. The earning asset strategies do
impact current earnings, but they play a key role in our long-term
asset liability management strategy as the balance sheet is
shortened to better prepare for a rising rate environment. 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 such as time deposits or borrowings as opportunities are
presented," commented President Grafmyre.
Assets
Total assets increased $355,460,000 to $1,211,995,000 at
December 31, 2013 compared to December 31, 2012 due primarily to
the acquisition of Luzerne. Net loans increased $303,585,000 to
$808,200,000 at December 31, 2013 compared to December 31, 2012 due
to the acquisition of Luzerne and campaigns related to increasing
home equity product market share during 2012 and 2013. The
investment portfolio decreased $704,000 from December 31, 2012 to
December 31, 2013 due to our strategy to reduce the investment
portfolio duration through the selective selling of bonds as
opportunities develop, and a change in the fair market value
adjustment to an unrealized loss from an unrealized gain. The
decreases in value were partially offset by the acquisition of
Luzerne.
Non-performing Loans
Our non-performing loans to total loans ratio decreased to 1.23%
at December 31, 2013 from 2.29% at December 31, 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 $251,000 for the
twelve months ended December 31, 2013 augmented the allowance for
loan losses which was 1.24% of total loans at December 31,
2013.
Deposits
Deposits have increased $330,976,000 to $973,002,000 at December
31, 2013 compared to December 31, 2012, with core deposits (total
deposits excluding time deposits) increasing $265,105,000, while
higher cost time deposits only increased $65,871,000.
Noninterest-bearing deposits have increased $102,424,000 to
$217,377,000 at December 31, 2013 compared to December 31, 2012.
Driving this growth is our acquisition of Luzerne 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 $34,089,000 to $127,815,000 at
December 31, 2013 compared to December 31, 2012. The accumulated
other comprehensive loss of $4,894,000 at December 31, 2013 is a
result of a decrease in unrealized gains on available for sale
securities from an unrealized gain of $10,164,000 at December 31,
2012 to an unrealized loss of $2,169,000 at December 31, 2013. The
amount of accumulated other comprehensive loss at December 31, 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 a decrease in the net
loss of $2,082,000 to $2,725,000 at December 31, 2013. The current
level of shareholders' equity equates to a book value per share of
$26.52 at December 31, 2013 compared to $24.42 at December 31, 2012
and an equity to asset ratio of 10.55% at December 31, 2013
compared to 10.94% at December 31, 2012. Excluding goodwill and
intangibles, book value per share was $22.60 at December 31, 2013
compared to $23.63 at December 31, 2012. Dividends declared for the
three and twelve months ended December 31, 2013 were $0.47 and
$2.13 per share, which includes a special cash dividend of $0.25
per share declared in the first quarter 2013, compared to $0.47 and
$1.88 for the three and twelve months ended December 31, 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 eight branch offices
providing financial services in Luzerne County. 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) |
|
|
|
|
|
December
31, |
(In Thousands, Except Share Data) |
2013 |
2012 |
% Change |
ASSETS |
|
|
|
Noninterest-bearing balances |
$ 23,723 |
$ 12,695 |
86.87% |
Interest-bearing deposits in other financial
institutions |
770 |
2,447 |
(68.53)% |
Federal funds sold |
113 |
— |
n/a |
Total cash and cash
equivalents |
24,606 |
15,142 |
62.50% |
|
|
|
|
Investment securities, available for sale, at
fair value |
288,612 |
289,316 |
(0.24)% |
Loans held for sale |
1,626 |
3,774 |
(56.92)% |
Loans |
818,344 |
512,232 |
59.76% |
Allowance for loan losses |
(10,144) |
(7,617) |
33.18% |
Loans, net |
808,200 |
504,615 |
60.16% |
Premises and equipment, net |
20,184 |
8,348 |
141.78% |
Accrued interest receivable |
4,696 |
4,099 |
14.56% |
Bank-owned life insurance |
25,410 |
16,362 |
55.30% |
Investment in limited partnerships |
2,221 |
2,883 |
(22.96)% |
Goodwill |
17,104 |
3,032 |
464.12% |
Intangibles |
1,801 |
— |
n/a |
Deferred tax asset |
9,889 |
4,731 |
109.03% |
Other assets |
7,646 |
4,233 |
80.63% |
TOTAL ASSETS |
$ 1,211,995 |
$ 856,535 |
41.50% |
|
|
|
|
LIABILITIES |
|
|
|
Interest-bearing deposits |
$ 755,625 |
$ 527,073 |
43.36% |
Noninterest-bearing deposits |
217,377 |
114,953 |
89.10% |
Total deposits |
973,002 |
642,026 |
51.55% |
|
|
|
|
Short-term borrowings |
26,716 |
33,204 |
(19.54)% |
Long-term borrowings |
71,202 |
76,278 |
(6.65)% |
Accrued interest payable |
405 |
366 |
10.66% |
Other liabilities |
12,855 |
10,935 |
17.56% |
TOTAL LIABILITIES |
1,084,180 |
762,809 |
42.13% |
|
|
|
|
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; 4,999,929 and 4,019,112 shares issued |
41,665 |
33,492 |
24.40% |
Additional paid-in capital |
49,800 |
18,157 |
174.27% |
Retained earnings |
47,554 |
43,030 |
10.51% |
Accumulated other comprehensive (loss)
income: |
|
|
|
Net unrealized (loss) gain on available
for sale securities |
(2,169) |
10,164 |
(121.34)% |
Defined benefit plan |
(2,725) |
(4,807) |
(43.31)% |
Treasury stock at cost, 180,596
shares |
(6,310) |
(6,310) |
—% |
TOTAL SHAREHOLDERS' EQUITY |
127,815 |
93,726 |
36.37% |
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 1,211,995 |
$ 856,535 |
41.50% |
|
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP,
INC. |
CONSOLIDATED STATEMENT
OF INCOME |
(UNAUDITED) |
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
(In Thousands, Except Per Share Data) |
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
Loans including fees |
$ 9,097 |
$ 6,418 |
41.74% |
$ 32,353 |
$ 25,372 |
27.51% |
Investment securities: |
|
|
|
|
|
|
Taxable |
1,514 |
1,463 |
3.49% |
6,034 |
5,940 |
1.58% |
Tax-exempt |
1,049 |
1,302 |
(19.43)% |
4,602 |
5,429 |
(15.23)% |
Dividend and other interest income |
102 |
92 |
10.87% |
310 |
366 |
(15.30)% |
TOTAL INTEREST AND DIVIDEND INCOME |
11,762 |
9,275 |
26.81% |
43,299 |
37,107 |
16.69% |
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Deposits |
815 |
848 |
(3.89)% |
3,221 |
3,645 |
(11.63)% |
Short-term borrowings |
18 |
37 |
(51.35)% |
81 |
137 |
(40.88)% |
Long-term borrowings |
482 |
552 |
(12.68)% |
1,962 |
2,429 |
(19.23)% |
TOTAL INTEREST EXPENSE |
1,315 |
1,437 |
(8.49)% |
5,264 |
6,211 |
(15.25)% |
|
|
|
|
|
|
|
NET INTEREST INCOME |
10,447 |
7,838 |
33.29% |
38,035 |
30,896 |
23.11% |
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES |
600 |
725 |
(17.24)% |
2,275 |
2,525 |
(9.90)% |
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES |
9,847 |
7,113 |
38.44% |
35,760 |
28,371 |
26.04% |
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Service charges |
656 |
500 |
31.20% |
2,307 |
1,894 |
21.81% |
Securities gains, net |
160 |
79 |
102.53% |
2,417 |
1,285 |
88.09% |
Bank-owned life insurance |
196 |
131 |
49.62% |
677 |
670 |
1.04% |
Gain on sale of loans |
234 |
333 |
(29.73)% |
1,438 |
1,386 |
3.75% |
Insurance commissions |
287 |
304 |
(5.59)% |
1,084 |
1,357 |
(20.12)% |
Brokerage commissions |
221 |
214 |
3.27% |
1,018 |
912 |
11.62% |
Other |
1,178 |
724 |
62.71% |
3,101 |
2,596 |
19.45% |
TOTAL NON-INTEREST INCOME |
2,932 |
2,285 |
28.32% |
12,042 |
10,100 |
19.23% |
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
4,390 |
2,956 |
48.51% |
15,415 |
11,762 |
31.06% |
Occupancy |
603 |
307 |
96.42% |
1,905 |
1,270 |
50.00% |
Furniture and equipment |
573 |
394 |
45.43% |
1,815 |
1,452 |
25.00% |
Pennsylvania shares tax |
247 |
169 |
46.15% |
864 |
674 |
28.19% |
Amortization of investments in limited
partnerships |
165 |
165 |
—% |
661 |
661 |
—% |
Federal Deposit Insurance Corporation deposit
insurance |
173 |
119 |
45.38% |
594 |
468 |
26.92% |
Marketing |
146 |
121 |
20.66% |
517 |
516 |
0.19% |
Intangible amortization |
91 |
— |
n/a |
213 |
— |
n/a |
Other |
2,088 |
1,527 |
36.74% |
8,283 |
5,220 |
58.68% |
TOTAL NON-INTEREST EXPENSE |
8,476 |
5,758 |
47.20% |
30,267 |
22,023 |
37.43% |
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX PROVISION |
4,303 |
3,640 |
18.21% |
17,535 |
16,448 |
6.61% |
INCOME TAX PROVISION |
808 |
544 |
48.53% |
3,451 |
2,598 |
32.83% |
NET INCOME |
$ 3,495 |
$ 3,096 |
12.89% |
$ 14,084 |
$ 13,850 |
1.69% |
|
|
|
|
|
|
|
EARNINGS PER SHARE - BASIC AND DILUTED |
$ 0.73 |
$ 0.81 |
(9.88)% |
$ 3.19 |
$ 3.61 |
(11.63)% |
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC
AND DILUTED |
4,819,048 |
3,838,290 |
25.55% |
4,410,626 |
3,837,751 |
14.93% |
|
|
|
|
|
|
|
DIVIDENDS DECLARED PER SHARE |
$ 0.47 |
$ 0.47 |
—% |
$ 2.13 |
$ 1.88 |
13.30% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP,
INC. |
AVERAGE BALANCES AND
INTEREST RATES |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
December
31, 2013 |
December
31, 2012 |
|
Average |
|
Average |
Average |
|
Average |
(Dollars in Thousands) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
ASSETS: |
|
|
|
|
|
|
Tax-exempt loans |
$ 25,849 |
$ 297 |
4.56% |
$ 22,171 |
$ 286 |
5.13% |
All other loans |
786,740 |
8,901 |
4.49% |
482,586 |
6,229 |
5.13% |
Total loans |
812,589 |
9,198 |
4.49% |
504,757 |
6,515 |
5.13% |
|
|
|
|
|
|
|
Federal funds sold |
444 |
— |
—% |
— |
— |
—% |
|
|
|
|
|
|
|
Taxable securities |
181,709 |
1,612 |
3.55% |
161,669 |
1,551 |
3.84% |
Tax-exempt securities |
107,494 |
1,589 |
5.91% |
132,624 |
1,973 |
5.95% |
Total securities |
289,203 |
3,201 |
4.43% |
294,293 |
3,524 |
4.79% |
|
|
|
|
|
|
|
Interest-bearing deposits |
4,922 |
4 |
0.32% |
2,514 |
4 |
0.63% |
|
|
|
|
|
|
|
Total interest-earning assets |
1,107,158 |
12,403 |
4.45% |
801,564 |
10,043 |
4.99% |
|
|
|
|
|
|
|
Other assets |
96,201 |
|
|
46,860 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ 1,203,359 |
|
|
$ 848,424 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
Savings |
$ 138,553 |
44 |
0.13% |
$ 80,341 |
21 |
0.10% |
Super Now deposits |
165,735 |
166 |
0.40% |
125,396 |
158 |
0.50% |
Money market deposits |
208,591 |
140 |
0.27% |
149,691 |
154 |
0.41% |
Time deposits |
235,718 |
465 |
0.78% |
172,334 |
515 |
1.19% |
Total interest-bearing deposits |
748,597 |
815 |
0.43% |
527,762 |
848 |
0.64% |
|
|
|
|
|
|
|
Short-term borrowings |
25,385 |
18 |
0.33% |
25,926 |
37 |
0.57% |
Long-term borrowings |
70,755 |
482 |
2.67% |
71,821 |
552 |
3.01% |
Total borrowings |
96,140 |
500 |
2.05% |
97,747 |
589 |
2.36% |
|
|
|
|
|
|
|
Total interest-bearing liabilities |
844,737 |
1,315 |
0.62% |
625,509 |
1,437 |
0.91% |
|
|
|
|
|
|
|
Demand deposits |
213,368 |
|
|
116,314 |
|
|
Other liabilities |
18,070 |
|
|
10,736 |
|
|
Shareholders' equity |
127,184 |
|
|
95,865 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 1,203,359 |
|
|
$ 848,424 |
|
|
Interest rate spread |
|
|
3.83% |
|
|
4.08% |
Net interest income/margin |
|
$ 11,088 |
3.98% |
|
$ 8,606 |
4.29% |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
|
2013 |
2012 |
Total interest income |
$ 11,762 |
$ 9,275 |
Total interest expense |
1,315 |
1,437 |
Net interest income |
10,447 |
7,838 |
Tax equivalent adjustment |
641 |
768 |
Net interest income (fully taxable
equivalent) |
$ 11,088 |
$ 8,606 |
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP,
INC. |
AVERAGE BALANCES AND
INTEREST RATES |
|
|
|
|
|
|
|
|
Twelve Months
Ended |
|
December
31, 2013 |
December
31, 2012 |
|
Average |
|
Average |
Average |
|
Average |
(Dollars in Thousands) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
ASSETS: |
|
|
|
|
|
|
Tax-exempt loans |
$ 24,934 |
$ 1,056 |
4.24% |
$ 23,857 |
$ 1,195 |
5.01% |
All other loans |
662,394 |
31,656 |
4.78% |
446,569 |
24,583 |
5.50% |
Total loans |
687,328 |
32,712 |
4.76% |
470,426 |
25,778 |
5.48% |
|
|
|
|
|
|
|
Federal funds sold |
226 |
— |
—% |
— |
— |
—% |
|
|
|
|
|
|
|
Taxable securities |
176,674 |
6,326 |
3.58% |
158,765 |
6,298 |
3.97% |
Tax-exempt securities |
116,697 |
6,973 |
5.98% |
131,637 |
8,226 |
6.25% |
Total securities |
293,371 |
13,299 |
4.53% |
290,402 |
14,524 |
5.00% |
|
|
|
|
|
|
|
Interest-bearing deposits |
6,946 |
18 |
0.26% |
6,621 |
8 |
0.12% |
|
|
|
|
|
|
|
Total interest-earning assets |
987,871 |
46,029 |
4.66% |
767,449 |
40,310 |
5.25% |
|
|
|
|
|
|
|
Other assets |
76,593 |
|
|
49,070 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ 1,064,464 |
|
|
$ 816,519 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
Savings |
$ 118,125 |
140 |
0.12% |
$ 78,724 |
65 |
0.08% |
Super Now deposits |
154,131 |
687 |
0.45% |
118,515 |
610 |
0.51% |
Money market deposits |
183,460 |
548 |
0.30% |
145,339 |
734 |
0.51% |
Time deposits |
209,517 |
1,846 |
0.88% |
173,274 |
2,236 |
1.29% |
Total interest-bearing deposits |
665,233 |
3,221 |
0.48% |
515,852 |
3,645 |
0.71% |
|
|
|
|
|
|
|
Short-term borrowings |
22,281 |
81 |
0.38% |
20,961 |
137 |
0.65% |
Long-term borrowings |
72,140 |
1,962 |
2.68% |
64,994 |
2,429 |
3.68% |
Total borrowings |
94,421 |
2,043 |
2.14% |
85,955 |
2,566 |
2.94% |
|
|
|
|
|
|
|
Total interest-bearing liabilities |
759,654 |
5,264 |
0.69% |
601,807 |
6,211 |
1.03% |
|
|
|
|
|
|
|
Demand deposits |
174,909 |
|
|
113,431 |
|
|
Other liabilities |
15,962 |
|
|
11,126 |
|
|
Shareholders' equity |
113,939 |
|
|
90,155 |
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 1,064,464 |
|
|
$ 816,519 |
|
|
Interest rate spread |
|
|
3.97% |
|
|
4.22% |
Net interest income/margin |
|
$ 40,765 |
4.13% |
|
$ 34,099 |
4.45% |
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, |
|
2013 |
2012 |
Total interest income |
$ 43,299 |
$ 37,107 |
Total interest expense |
5,264 |
6,211 |
Net interest income |
38,035 |
30,896 |
Tax equivalent adjustment |
2,730 |
3,203 |
Net interest income (fully taxable
equivalent) |
$ 40,765 |
$ 34,099 |
|
|
|
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share Data) |
Quarter Ended |
|
12/31/2013 |
9/30/2013 |
6/30/2013 |
3/31/2013 |
12/31/2012 |
Operating Data |
|
|
|
|
|
Net income |
$ 3,495 |
$ 3,246 |
$ 3,659 |
$ 3,684 |
$ 3,096 |
Net interest income |
10,447 |
10,629 |
8,754 |
8,205 |
7,838 |
Provision for loan losses |
600 |
600 |
575 |
500 |
725 |
Net security gains (losses) |
160 |
(3) |
1,274 |
986 |
79 |
Non-interest income, ex. net security
gains |
2,772 |
2,845 |
2,261 |
1,747 |
2,206 |
Non-interest expense |
8,476 |
8,975 |
6,965 |
5,851 |
5,758 |
|
|
|
|
|
|
Performance Statistics |
|
|
|
|
|
Net interest margin |
3.99% |
4.07% |
4.09% |
4.46% |
4.29% |
Annualized return on average assets |
1.16% |
1.08% |
1.48% |
1.72% |
1.46% |
Annualized return on average equity |
10.99% |
10.39% |
13.54% |
15.51% |
12.92% |
Annualized net loan charge-offs
(recoveries) to average loans |
0.04% |
0.19% |
—% |
(0.55)% |
0.50% |
Net charge-offs (recoveries) |
87 |
374 |
1 |
(713) |
629 |
Efficiency ratio |
63.5% |
66.6% |
63.2% |
58.8% |
57.3% |
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
Basic earnings per share |
$ 0.73 |
$ 0.67 |
$ 0.88 |
$ 0.96 |
$ 0.81 |
Diluted earnings per share |
0.73 |
0.67 |
0.88 |
0.96 |
0.81 |
Dividend declared per share |
0.47 |
0.47 |
0.47 |
0.72 |
0.47 |
Book value |
26.52 |
26.12 |
26.14 |
24.23 |
24.42 |
Common stock price: |
|
|
|
|
|
High |
53.99 |
49.89 |
41.86 |
41.45 |
45.27 |
Low |
47.03 |
42.76 |
39.44 |
38.50 |
37.16 |
Close |
51 |
49.82 |
41.86 |
40.97 |
37.41 |
Weighted average common shares: |
|
|
|
|
|
Basic |
4,819 |
4,818 |
4,151 |
3,839 |
3,838 |
Fully Diluted |
4,819 |
4,818 |
4,151 |
3,839 |
3,838 |
End-of-period common shares: |
|
|
|
|
|
Issued |
5,000 |
4,999 |
4,999 |
4,020 |
4,019 |
Treasury |
181 |
181 |
181 |
181 |
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
(Dollars in Thousands, Except Per Share Data) |
12/31/2013 |
9/30/2013 |
6/30/2013 |
3/31/2013 |
12/31/2012 |
Financial Condition
Data: |
|
|
|
|
|
General |
|
|
|
|
|
Total assets |
$ 1,211,995 |
$ 1,204,090 |
$ 1,206,958 |
$ 852,997 |
$ 856,535 |
Loans, net |
808,200 |
796,533 |
777,557 |
503,592 |
504,615 |
Goodwill |
17,104 |
17,104 |
17,104 |
3,032 |
3,032 |
Intangibles |
1,801 |
1,892 |
1,984 |
— |
— |
Total deposits |
973,002 |
975,521 |
955,361 |
659,304 |
642,026 |
Noninterest-bearing |
217,377 |
215,374 |
211,096 |
120,471 |
114,953 |
|
|
|
|
|
|
Savings |
138,621 |
142,193 |
140,667 |
86,556 |
82,546 |
NOW |
177,996 |
169,974 |
161,972 |
140,626 |
130,454 |
Money Market |
203,786 |
209,469 |
203,076 |
143,847 |
144,722 |
Time Deposits |
235,222 |
238,511 |
238,550 |
167,804 |
169,351 |
Total interest-bearing
deposits |
755,625 |
760,147 |
744,265 |
538,833 |
527,073 |
|
|
|
|
|
|
Core deposits* |
737,780 |
737,010 |
716,811 |
491,500 |
472,675 |
Shareholders' equity |
127,815 |
125,852 |
125,928 |
93,013 |
93,726 |
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
Non-performing assets |
$ 10,029 |
$ 6,064 |
$ 6,515 |
$ 9,059 |
$ 11,706 |
Non-performing assets to total
assets |
0.83% |
0.50% |
0.54% |
1.06% |
1.37% |
Allowance for loan losses |
10,144 |
9,630 |
9,404 |
8,830 |
7,617 |
Allowance for loan losses to total
loans |
1.24% |
1.19% |
1.19% |
1.72% |
1.49% |
Allowance for loan losses to
non-performing loans |
101.15% |
158.81% |
144.34% |
97.47% |
65.07% |
Non-performing loans to total loans |
1.23% |
0.75% |
0.83% |
1.77% |
2.29% |
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
Shareholders' equity to total assets |
10.55% |
10.45% |
10.43% |
10.90% |
10.94% |
|
|
|
|
|
|
* Core deposits are defined
as total deposits less time deposits |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and Non-GAAP
Financial Measures |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
(Dollars in Thousands, Except Per Share Data) |
2013 |
2012 |
2013 |
2012 |
GAAP net income |
$ 3,495 |
$ 3,096 |
$ 14,084 |
$ 13,850 |
Less: net securities and bank-owned life
insurance (losses) gains, net of tax |
106 |
52 |
1,595 |
957 |
Non-GAAP operating earnings |
$ 3,389 |
$ 3,044 |
$ 12,489 |
$ 12,893 |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2013 |
2012 |
2013 |
2012 |
Return on average assets (ROA) |
1.16% |
1.46% |
1.32% |
1.70% |
Less: net securities and bank-owned life
insurance (losses) gains, net of tax |
0.03% |
0.02% |
0.15% |
0.12% |
Non-GAAP operating ROA |
1.13% |
1.44% |
1.17% |
1.58% |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2013 |
2012 |
2013 |
2012 |
Return on average equity (ROE) |
10.99% |
12.92% |
12.36% |
15.36% |
Less: net securities and bank-owned life
insurance (losses) gains, net of tax |
0.33% |
0.22% |
1.40% |
1.06% |
Non-GAAP operating ROE |
10.66% |
12.70% |
10.96% |
14.30% |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2013 |
2012 |
2013 |
2012 |
Basic earnings per share (EPS) |
$ 0.73 |
$ 0.81 |
$ 3.19 |
$ 3.61 |
Less: net securities and bank-owned life
insurance (losses) gains, net of tax |
0.03 |
0.02 |
0.36 |
0.25 |
Non-GAAP basic operating EPS |
$ 0.70 |
$ 0.79 |
$ 2.83 |
$ 3.36 |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2013 |
2012 |
2013 |
2012 |
Dilutive EPS |
$ 0.73 |
$ 0.81 |
$ 3.19 |
$ 3.61 |
Less: net securities and bank-owned life
insurance (losses) gains, net of tax |
0.03 |
0.02 |
0.36 |
0.25 |
Non-GAAP dilutive operating EPS |
$ 0.70 |
$ 0.79 |
$ 2.83 |
$ 3.36 |
|
|
|
|
|
CONTACT: Richard A. Grafmyre, President and Chief Executive Officer
300 Market Street
Williamsport, PA 17701
570-322-1111
e-mail: pwod@pwod.com
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