Penns Woods Bancorp, Inc. (NASDAQ:PWOD)
Penns Woods Bancorp, Inc., supported by
loan and deposit growth, achieved net income of $3.2 million, for
the three months ended March 31, 2018 resulting in basic and
dilutive earnings per share of $0.68.
Highlights
- Net income from core operations (“operating earnings”), which
is a non-generally accepted accounting principles (GAAP) measure of
net income excluding net securities gains or losses, was $3.2
million for the three months ended March 31, 2018 compared to
$2.6 million for the same period of 2017. Impacting the level
of operating earnings were several factors including the continued
shift of earning assets from the investment portfolio to the loan
portfolio as the balance sheet is actively managed to reduce market
risk and interest rate risk in a rising rate environment. In
addition, the effective tax rate has decreased due to the "Tax Cuts
and Jobs Act," which reduced the corporate tax rate to 21%
effective January 1, 2018.
- Operating earnings per share for the three months ended March
31, 2018 was $0.69 for basic and dilutive, an increase from $0.54
for basic and dilutive for the same period of 2017.
- Return on average assets was 0.86% for the three months ended
March 31, 2018 compared to 0.79% for the corresponding period of
2017.
- Return on average equity was 9.18% for the three months ended
March 31, 2018 compared to 7.69% for the corresponding period of
2017.
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 months ended March 31, 2018 was $3.2 million compared to
$2.7 million for the same period of 2017. Results for the
three months ended March 31, 2018 compared to 2017 were
impacted by an increase in after-tax securities losses of $163,000
(from a gain of $131,000 to a loss of $32,000) for the three month
periods. The impact of the Tax Cuts and Jobs Act was the
primary driver for the decrease in the Company's effective tax rate
to 15.5% for the three month period ended March 31, 2018 compared
to 26.9% for the prior year period. Earnings per share for
the three months ended March 31, 2018 was $0.68 basic and diluted,
a change from the 2017 basic and diluted earnings per share of
$0.57 basic and $0.56 diluted. Return on average assets and
return on average equity were 0.86% and 9.18% for the three months
ended March 31, 2018 compared to 0.79% and 7.69% for the
corresponding period of 2017.
Net Interest Margin
The net interest margin for the three months
ended March 31, 2018 was 3.31% compared to 3.40% for the
corresponding period of 2017. The decrease in the net
interest margin was driven by an increase in the cost of
interest-bearing liabilities of 19 basis points ("bps"). The
impact of the increased cost of funds was limited by an increase in
the yield on earning assets of 8 bps coupled with an increase in
the average loan portfolio of $161.8 million. The loan growth
was primarily funded by an increase in average borrowings of $82.4
million and growth in average total deposits of $37.2
million. Core deposits represent a lower cost funding source
than time deposits and comprise 79.34% of total deposits at
March 31, 2018 and 82.32% at March 31, 2017.
Assets
Total assets increased $126.0 million to $1.5
billion at March 31, 2018 compared to March 31,
2017. Net loans increased $169.7 million to $1.3 billion at
March 31, 2018 compared to March 31, 2017, primarily due
to campaigns related to increasing home equity product market share
during 2018 and indirect auto lending. The investment
portfolio decreased $6.8 million from March 31, 2017 to
March 31, 2018 due to our strategy to reduce the investment
portfolio duration through the selective selling of bonds as
opportunities develop. The combination of loan portfolio
growth and a decrease in the size of the investment portfolio has
resulted in shortening the overall earning asset portfolio duration
consistent with a strategy to reduce the interest rate and market
risk exposure to a rising rate environment.
Non-performing Loans
The ratio of non-performing loans to total loans
ratio decreased to 0.60% at March 31, 2018 from 0.98%
March 31, 2017 as non-performing loans have decreased to $7.6
million at March 31, 2018 from $10.9 million at March 31,
2017. The level of non-performing loans decreased primarily as a
result of a large non-performing loan being paid off during the
quarter ended September 30, 2017. The majority of
non-performing loans involve loans that are either in a secured
position and have sureties with a strong underlying financial
position or have a specific allocation for any impairment recorded
within the allowance for loan losses. Net loan charge-offs of
$182,000 for the three months ended March 31, 2018 minimally
impacted the allowance for loan losses which was 1.00% of total
loans at March 31, 2018. The majority of the loans
charged-off had a specific allowance within the allowance for loan
losses.
Deposits
Deposits increased $31.8 million to $1.2 billion
at March 31, 2018 compared to March 31, 2017.
Noninterest-bearing deposits decreased slightly to $304.3 million
at March 31, 2018 compared to March 31, 2017. While
deposit gathering efforts have centered on core deposits, the
lengthening of the time deposit portfolio continues to move forward
as part of the strategy to build balance sheet protection in a
rising rate environment.
Shareholders’ Equity
Shareholders’ equity decreased $1.0 million to
$138.1 million at March 31, 2018 compared to March 31,
2017. The change in accumulated other comprehensive loss from
$4.5 million at March 31, 2017 to $5.6 million at
March 31, 2018 is a result of an increase in unrealized losses
on available for sale securities (from an unrealized loss of
$281,000 at March 31, 2017 to an unrealized loss of $666,000 at
March 31, 2018). The amount of accumulated other comprehensive
loss at March 31, 2018 was also impacted by the change in net
excess of the projected benefit obligation over the fair value of
the plan assets of the defined benefit pension plan resulting in an
increase in the net loss of $623,000, mainly due to the change in
the corporate tax rate from 2017 to 2018. The current level of
shareholders’ equity equates to a book value per share of $29.45 at
March 31, 2018 compared to $29.38 at March 31, 2017 and
an equity to asset ratio of 9.05% at March 31, 2018 compared
to 9.93% at March 31, 2017. Excluding goodwill and
intangibles, book value per share was $25.51 at March 31, 2018
compared to $25.41 at March 31, 2017. Dividends declared
for the three months ended March 31, 2018 and 2017 were $0.47 per
share.
Penns Woods Bancorp, Inc. is the parent
company of Jersey Shore State Bank, which operates seventeen branch
offices providing financial services in Lycoming, Clinton, Centre,
Montour, and Union Counties, and Luzerne Bank, which operates nine
branch offices providing financial services in Luzerne
County. Investment and insurance products are offered through
Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A
The Comprehensive Financial Group. Insurance products are
offered through United Insurance Solutions, LLC a joint venture
that is a subsidiary of the holding company.
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. These certain items and
their impact on the Company’s performance are difficult to predict,
management believes presentation of financial measures excluding
the impact of such items provides useful supplemental information
in evaluating the operating results of the Company’s core
businesses. These disclosures should not be viewed as a substitute
for net income determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies.
This press release may contain certain
“forward-looking statements” including statements concerning plans,
objectives, future events or performance and assumptions and other
statements, which are statements other than statements of
historical fact. The Company cautions readers that the
following important factors, among others, may have affected and
could in the future affect actual results and could cause actual
results for subsequent periods to differ materially from those
expressed in any forward-looking statement made by or on behalf of
the Company herein: (i) the effect of changes in laws and
regulations, including federal and state banking laws and
regulations, and the associated costs of compliance with such laws
and regulations either currently or in the future as applicable;
(ii) the effect of changes in accounting policies and
practices, as may be adopted by the regulatory agencies as well as
by the Financial Accounting Standards Board, or of changes in the
Company’s organization, compensation and benefit plans;
(iii) the effect on the Company’s competitive position within
its market area of the increasing consolidation within the banking
and financial services industries, including the increased
competition from larger regional and out-of-state banking
organizations as well as non-bank providers of various financial
services; (iv) the effect of changes in interest rates; 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, 2017.
You should not place undue reliance on any
forward-looking statements. These statements speak only as of
the date of this press release, even if subsequently made available
by the Company on its website or otherwise. The Company
undertakes no obligation to update or revise these statements to
reflect events or circumstances occurring after the date of this
press release.
Previous press releases and additional
information can be obtained from the Company’s website at
www.pwod.com.
Contact: Richard A. Grafmyre, Chief Executive
Officer110 Reynolds StreetWilliamsport, PA 17702570-322-1111e-mail:
pwod@pwod.com
THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT
ADJUSTMENT
PENNS WOODS
BANCORP, INC.CONSOLIDATED BALANCE
SHEET(UNAUDITED)
|
|
March 31, |
(In Thousands, Except Share Data) |
|
2018 |
|
2017 |
|
% Change |
ASSETS: |
|
|
|
|
|
|
Noninterest-bearing
balances |
|
$ |
18,940 |
|
|
$ |
22,494 |
|
|
(15.80 |
)% |
Interest-bearing
balances in other financial institutions |
|
18,452 |
|
|
53,166 |
|
|
(65.29 |
)% |
Total
cash and cash equivalents |
|
37,392 |
|
|
75,660 |
|
|
(50.58 |
)% |
|
|
|
|
|
|
|
Investment debt
securities, available for sale, at fair value |
|
116,444 |
|
|
123,456 |
|
|
(5.68 |
)% |
Investment equity
securities, at fair value |
|
2,482 |
|
|
2,455 |
|
|
1.10 |
% |
Investment securities,
trading |
|
159 |
|
|
— |
|
|
100.00 |
% |
Restricted investment
in bank stock, at fair value |
|
13,483 |
|
|
10,999 |
|
|
22.58 |
% |
Loans held for
sale |
|
748 |
|
|
1,221 |
|
|
(38.74 |
)% |
Loans |
|
1,280,748 |
|
|
1,111,100 |
|
|
15.27 |
% |
Allowance for loan
losses |
|
(12,836 |
) |
|
(12,905 |
) |
|
(0.53 |
)% |
Loans,
net |
|
1,267,912 |
|
|
1,098,195 |
|
|
15.45 |
% |
Premises and equipment,
net |
|
27,587 |
|
|
24,431 |
|
|
12.92 |
% |
Accrued interest
receivable |
|
4,456 |
|
|
3,945 |
|
|
12.95 |
% |
Bank-owned life
insurance |
|
28,169 |
|
|
27,521 |
|
|
2.35 |
% |
Goodwill |
|
17,104 |
|
|
17,104 |
|
|
— |
% |
Intangibles |
|
1,382 |
|
|
1,709 |
|
|
(19.13 |
)% |
Deferred tax asset |
|
4,721 |
|
|
8,039 |
|
|
(41.27 |
)% |
Other assets |
|
4,706 |
|
|
5,973 |
|
|
(21.21 |
)% |
TOTAL ASSETS |
|
$ |
1,526,745 |
|
|
$ |
1,400,708 |
|
|
9.00 |
% |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Interest-bearing
deposits |
|
$ |
888,193 |
|
|
$ |
848,272 |
|
|
4.71 |
% |
Noninterest-bearing
deposits |
|
304,261 |
|
|
312,392 |
|
|
(2.60 |
)% |
Total
deposits |
|
1,192,454 |
|
|
1,160,664 |
|
|
2.74 |
% |
|
|
|
|
|
|
|
Short-term
borrowings |
|
59,305 |
|
|
8,589 |
|
|
590.48 |
% |
Long-term
borrowings |
|
123,970 |
|
|
75,998 |
|
|
63.12 |
% |
Accrued interest
payable |
|
793 |
|
|
387 |
|
|
104.91 |
% |
Other
liabilities |
|
12,110 |
|
|
15,957 |
|
|
(24.11 |
)% |
TOTAL
LIABILITIES |
|
1,388,632 |
|
|
1,261,595 |
|
|
10.07 |
% |
|
|
|
|
|
|
|
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; 5,009,898 and 5,007,109
shares |
|
41,748 |
|
|
41,729 |
|
|
0.05 |
% |
Additional paid-in
capital |
|
50,207 |
|
|
50,091 |
|
|
0.23 |
% |
Retained
earnings |
|
63,824 |
|
|
62,071 |
|
|
2.82 |
% |
Accumulated other
comprehensive loss: |
|
|
|
|
|
|
Net
unrealized loss on available for sale securities |
|
(666 |
) |
|
(281 |
) |
|
137.01 |
% |
Defined
benefit plan |
|
(4,886 |
) |
|
(4,263 |
) |
|
(14.61 |
)% |
Treasury stock at cost,
320,150 and 272,452 shares |
|
(12,115 |
) |
|
(10,234 |
) |
|
18.38 |
% |
TOTAL PENNS WOODS
BANCORP, INC. SHAREHOLDERS' EQUITY |
|
138,112 |
|
|
139,113 |
|
|
(0.72 |
)% |
Non-controlling
interest |
|
1 |
|
|
— |
|
|
100.00 |
% |
TOTAL SHAREHOLDERS'
EQUITY |
|
138,113 |
|
|
139,113 |
|
|
(0.72 |
)% |
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
1,526,745 |
|
|
$ |
1,400,708 |
|
|
9.00 |
% |
PENNS WOODS BANCORP,
INC.CONSOLIDATED STATEMENT OF
INCOME(UNAUDITED)
|
|
Three Months Ended March 31, |
(In Thousands, Except Per Share Data) |
|
2018 |
|
2017 |
|
% Change |
INTEREST AND DIVIDEND
INCOME: |
|
|
|
|
|
|
Loans including
fees |
|
$ |
12,193 |
|
|
$ |
10,627 |
|
|
14.74 |
% |
Investment
securities: |
|
|
|
|
|
|
Taxable |
|
546 |
|
|
542 |
|
|
0.74 |
% |
Tax-exempt |
|
241 |
|
|
298 |
|
|
(19.13 |
)% |
Dividend
and other interest income |
|
221 |
|
|
215 |
|
|
2.79 |
% |
TOTAL INTEREST AND
DIVIDEND INCOME |
|
13,201 |
|
|
11,682 |
|
|
13.00 |
% |
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Deposits |
|
1,222 |
|
|
902 |
|
|
35.48 |
% |
Short-term
borrowings |
|
224 |
|
|
4 |
|
|
5,500.00 |
% |
Long-term
borrowings |
|
602 |
|
|
440 |
|
|
36.82 |
% |
TOTAL INTEREST
EXPENSE |
|
2,048 |
|
|
1,346 |
|
|
52.15 |
% |
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
11,153 |
|
|
10,336 |
|
|
7.90 |
% |
|
|
|
|
|
|
|
PROVISION FOR LOAN
LOSSES |
|
160 |
|
|
330 |
|
|
(51.52 |
)% |
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES |
|
10,993 |
|
|
10,006 |
|
|
9.86 |
% |
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
Service charges |
|
551 |
|
|
528 |
|
|
4.36 |
% |
Debt securities gains,
available for sale |
|
5 |
|
|
197 |
|
|
(97.46 |
)% |
Equity securities
losses |
|
(34 |
) |
|
— |
|
|
(100.00 |
)% |
Securities (losses)
gains, trading |
|
(11 |
) |
|
2 |
|
|
(650.00 |
)% |
Bank-owned life
insurance |
|
173 |
|
|
172 |
|
|
0.58 |
% |
Gain on sale of
loans |
|
255 |
|
|
358 |
|
|
(28.77 |
)% |
Insurance
commissions |
|
117 |
|
|
191 |
|
|
(38.74 |
)% |
Brokerage
commissions |
|
343 |
|
|
331 |
|
|
3.63 |
% |
Debit card income |
|
519 |
|
|
434 |
|
|
19.59 |
% |
Other |
|
410 |
|
|
438 |
|
|
(6.39 |
)% |
TOTAL NON-INTEREST
INCOME |
|
2,328 |
|
|
2,651 |
|
|
(12.18 |
)% |
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
Salaries and employee
benefits |
|
5,048 |
|
|
4,770 |
|
|
5.83 |
% |
Occupancy |
|
741 |
|
|
638 |
|
|
16.14 |
% |
Furniture and
equipment |
|
747 |
|
|
649 |
|
|
15.10 |
% |
Software
Amortization |
|
65 |
|
|
273 |
|
|
(76.19 |
)% |
Pennsylvania shares
tax |
|
277 |
|
|
238 |
|
|
16.39 |
% |
Professional Fees |
|
566 |
|
|
437 |
|
|
29.52 |
% |
Federal Deposit
Insurance Corporation deposit insurance |
|
202 |
|
|
170 |
|
|
18.82 |
% |
Debit Card Expense |
|
158 |
|
|
159 |
|
|
(0.63 |
)% |
Marketing |
|
251 |
|
|
171 |
|
|
46.78 |
% |
Intangible
amortization |
|
80 |
|
|
90 |
|
|
(11.11 |
)% |
Other |
|
1,389 |
|
|
1,390 |
|
|
(0.07 |
)% |
TOTAL NON-INTEREST
EXPENSE |
|
9,524 |
|
|
8,985 |
|
|
6.00 |
% |
INCOME BEFORE INCOME
TAX PROVISION |
|
3,797 |
|
|
3,672 |
|
|
3.40 |
% |
INCOME TAX
PROVISION |
|
589 |
|
|
986 |
|
|
(40.26 |
)% |
NET INCOME |
|
$ |
3,208 |
|
|
$ |
2,686 |
|
|
19.43 |
% |
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS' |
|
$ |
3,208 |
|
|
$ |
2,686 |
|
|
19.43 |
% |
|
|
|
|
|
|
|
EARNINGS PER SHARE -
BASIC |
|
$ |
0.68 |
|
|
$ |
0.57 |
|
|
19.30 |
% |
EARNINGS PER SHARE -
DILUTED |
|
$ |
0.68 |
|
|
$ |
0.56 |
|
|
21.43 |
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC |
|
4,689,376 |
|
|
4,734,805 |
|
|
(0.96 |
)% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED |
|
4,689,376 |
|
|
4,761,305 |
|
|
(1.51 |
)% |
DIVIDENDS DECLARED PER
SHARE |
|
$ |
0.47 |
|
|
$ |
0.47 |
|
|
— |
% |
PENNS WOODS BANCORP,
INC.AVERAGE BALANCES AND INTEREST
RATES
|
|
Three Months Ended |
|
|
March 31, 2018 |
|
March 31, 2017 |
(Dollars in Thousands) |
|
AverageBalance |
|
Interest |
|
AverageRate |
|
AverageBalance |
|
Interest |
|
AverageRate |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt loans |
|
$ |
75,448 |
|
|
$ |
567 |
|
|
3.05 |
% |
|
$ |
42,232 |
|
|
$ |
417 |
|
|
4.00 |
% |
All other loans |
|
1,186,117 |
|
|
11,745 |
|
|
4.02 |
% |
|
1,057,495 |
|
|
10,352 |
|
|
3.97 |
% |
Total loans |
|
1,261,565 |
|
|
12,312 |
|
|
3.96 |
% |
|
1,099,727 |
|
|
10,769 |
|
|
3.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
84,267 |
|
|
759 |
|
|
3.60 |
% |
|
89,317 |
|
|
685 |
|
|
3.07 |
% |
Tax-exempt
securities |
|
42,160 |
|
|
305 |
|
|
2.89 |
% |
|
46,673 |
|
|
452 |
|
|
3.87 |
% |
Total securities |
|
126,427 |
|
|
1,064 |
|
|
3.37 |
% |
|
135,990 |
|
|
1,137 |
|
|
3.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
2,167 |
|
|
8 |
|
|
1.50 |
% |
|
33,167 |
|
|
72 |
|
|
0.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets |
|
1,390,159 |
|
|
13,384 |
|
|
3.90 |
% |
|
1,268,884 |
|
|
11,978 |
|
|
3.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
97,606 |
|
|
|
|
|
|
99,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,487,765 |
|
|
|
|
|
|
$ |
1,368,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
163,037 |
|
|
16 |
|
|
0.04 |
% |
|
$ |
156,423 |
|
|
15 |
|
|
0.04 |
% |
Super Now deposits |
|
227,086 |
|
|
207 |
|
|
0.37 |
% |
|
189,299 |
|
|
106 |
|
|
0.23 |
% |
Money market
deposits |
|
236,443 |
|
|
210 |
|
|
0.36 |
% |
|
262,883 |
|
|
191 |
|
|
0.29 |
% |
Time deposits |
|
236,116 |
|
|
789 |
|
|
1.36 |
% |
|
210,052 |
|
|
590 |
|
|
1.14 |
% |
Total interest-bearing
deposits |
|
862,682 |
|
|
1,222 |
|
|
0.57 |
% |
|
818,657 |
|
|
902 |
|
|
0.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
61,803 |
|
|
224 |
|
|
1.45 |
% |
|
11,349 |
|
|
4 |
|
|
0.14 |
% |
Long-term
borrowings |
|
114,526 |
|
|
602 |
|
|
2.10 |
% |
|
82,554 |
|
|
440 |
|
|
2.13 |
% |
Total borrowings |
|
176,329 |
|
|
826 |
|
|
1.87 |
% |
|
93,903 |
|
|
444 |
|
|
1.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities |
|
1,039,011 |
|
|
2,048 |
|
|
0.79 |
% |
|
912,560 |
|
|
1,346 |
|
|
0.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
293,227 |
|
|
|
|
|
|
300,102 |
|
|
|
|
|
Other liabilities |
|
15,786 |
|
|
|
|
|
|
16,074 |
|
|
|
|
|
Shareholders’
equity |
|
139,741 |
|
|
|
|
|
|
139,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
1,487,765 |
|
|
|
|
|
|
$ |
1,368,421 |
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
3.11 |
% |
|
|
|
|
|
3.22 |
% |
Net interest
income/margin |
|
|
|
$ |
11,336 |
|
|
3.31 |
% |
|
|
|
$ |
10,632 |
|
|
3.40 |
% |
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Total interest
income |
|
$ |
13,201 |
|
|
$ |
11,682 |
|
Total interest
expense |
|
2,048 |
|
|
1,346 |
|
Net interest
income |
|
11,153 |
|
|
10,336 |
|
Tax equivalent
adjustment |
|
183 |
|
|
296 |
|
Net interest income
(fully taxable equivalent) |
|
$ |
11,336 |
|
|
$ |
10,632 |
|
(Dollars in Thousands, Except Per Share Data) |
|
Quarter Ended |
|
|
3/31/2018 |
|
12/31/2017 |
|
9/30/2017 |
|
6/30/2017 |
|
3/31/2017 |
Operating
Data |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
3,208 |
|
|
$ |
716 |
|
|
$ |
3,284 |
|
|
$ |
3,086 |
|
|
$ |
2,686 |
|
Net
interest income |
|
11,153 |
|
|
11,468 |
|
|
11,452 |
|
|
10,824 |
|
|
10,336 |
|
Provision
for loan losses |
|
160 |
|
|
125 |
|
|
60 |
|
|
215 |
|
|
330 |
|
Net
security (losses) gains |
|
(40 |
) |
|
107 |
|
|
298 |
|
|
(12 |
) |
|
199 |
|
Non-interest income, ex. net security (losses) gains |
|
2,368 |
|
|
2,482 |
|
|
2,442 |
|
|
2,775 |
|
|
2,452 |
|
Non-interest expense |
|
9,524 |
|
|
9,248 |
|
|
9,566 |
|
|
9,063 |
|
|
8,985 |
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Statistics |
|
|
|
|
|
|
|
|
|
|
Net
interest margin |
|
3.31 |
% |
|
3.48 |
% |
|
3.57 |
% |
|
3.44 |
% |
|
3.40 |
% |
Annualized return on average assets |
|
0.86 |
% |
|
0.20 |
% |
|
0.93 |
% |
|
0.88 |
% |
|
0.79 |
% |
Annualized return on average equity |
|
9.18 |
% |
|
2.00 |
% |
|
9.43 |
% |
|
8.79 |
% |
|
7.69 |
% |
Annualized net loan charge-offs to average loans |
|
0.06 |
% |
|
0.07 |
% |
|
0.08 |
% |
|
— |
% |
|
0.12 |
% |
Net
charge-offs |
|
182 |
|
|
200 |
|
|
236 |
|
|
11 |
|
|
321 |
|
Efficiency ratio |
|
69.8 |
% |
|
65.7 |
% |
|
68.3 |
% |
|
65.9 |
% |
|
69.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
|
$ |
0.68 |
|
|
$ |
0.16 |
|
|
$ |
0.70 |
|
|
$ |
0.65 |
|
|
$ |
0.57 |
|
Diluted
earnings per share |
|
0.68 |
|
|
0.15 |
|
|
0.70 |
|
|
0.65 |
|
|
0.56 |
|
Dividend
declared per share |
|
0.47 |
|
|
0.47 |
|
|
0.47 |
|
|
0.47 |
|
|
0.47 |
|
Book
value |
|
29.45 |
|
|
29.47 |
|
|
29.79 |
|
|
29.53 |
|
|
29.38 |
|
Common
stock price: |
|
|
|
|
|
|
|
|
|
|
High |
|
45.56 |
|
|
49.79 |
|
|
46.47 |
|
|
43.60 |
|
|
49.45 |
|
Low |
|
39.61 |
|
|
45.65 |
|
|
41.08 |
|
|
38.17 |
|
|
43.28 |
|
Close |
|
42.31 |
|
|
46.58 |
|
|
46.47 |
|
|
41.18 |
|
|
43.45 |
|
Weighted
average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
4,689 |
|
|
4,689 |
|
|
4,688 |
|
|
4,711 |
|
|
4,735 |
|
Fully
Diluted |
|
4,689 |
|
|
4,782 |
|
|
4,688 |
|
|
4,711 |
|
|
4,761 |
|
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
Issued |
|
5,010 |
|
|
5,009 |
|
|
5,009 |
|
|
5,008 |
|
|
5,008 |
|
Treasury |
|
320 |
|
|
320 |
|
|
320 |
|
|
320 |
|
|
272 |
|
(Dollars in Thousands, Except Per Share Data) |
|
Quarter Ended |
|
|
3/31/2018 |
|
12/31/2017 |
|
9/30/2017 |
|
6/30/2017 |
|
3/31/2017 |
Financial
Condition Data: |
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,526,745 |
|
|
$ |
1,474,492 |
|
|
$ |
1,430,197 |
|
|
$ |
1,395,364 |
|
|
$ |
1,400,708 |
|
Loans,
net |
|
1,267,912 |
|
|
1,232,268 |
|
|
1,176,781 |
|
|
1,125,976 |
|
|
1,098,195 |
|
Goodwill |
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
Intangibles |
|
1,382 |
|
|
1,462 |
|
|
1,543 |
|
|
1,623 |
|
|
1,709 |
|
Total
deposits |
|
1,192,454 |
|
|
1,146,320 |
|
|
1,153,996 |
|
|
1,151,110 |
|
|
1,160,664 |
|
Noninterest-bearing |
|
304,261 |
|
|
303,316 |
|
|
310,830 |
|
|
300,054 |
|
|
312,392 |
|
Savings |
|
166,243 |
|
|
160,698 |
|
|
156,437 |
|
|
158,101 |
|
|
159,652 |
|
NOW |
|
240,259 |
|
|
215,021 |
|
|
203,744 |
|
|
199,917 |
|
|
205,011 |
|
Money
Market |
|
235,381 |
|
|
237,818 |
|
|
274,528 |
|
|
287,140 |
|
|
278,443 |
|
Time
Deposits |
|
246,310 |
|
|
229,467 |
|
|
208,457 |
|
|
205,898 |
|
|
205,166 |
|
Total
interest-bearing deposits |
|
888,193 |
|
|
843,004 |
|
|
843,166 |
|
|
851,056 |
|
|
848,272 |
|
|
|
|
|
|
|
|
|
|
|
|
Core
deposits* |
|
946,144 |
|
|
916,853 |
|
|
945,539 |
|
|
945,212 |
|
|
955,498 |
|
Shareholders’ equity |
|
138,112 |
|
|
138,192 |
|
|
139,669 |
|
|
138,440 |
|
|
139,113 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
7,641 |
|
|
$ |
7,268 |
|
|
$ |
8,317 |
|
|
$ |
12,498 |
|
|
$ |
10,871 |
|
Non-performing loans to total assets |
|
0.50 |
% |
|
0.49 |
% |
|
0.58 |
% |
|
0.90 |
% |
|
0.78 |
% |
Allowance
for loan losses |
|
12,836 |
|
|
12,858 |
|
|
12,933 |
|
|
13,109 |
|
|
12,905 |
|
Allowance
for loan losses to total loans |
|
1.00 |
% |
|
1.03 |
% |
|
1.09 |
% |
|
1.15 |
% |
|
1.16 |
% |
Allowance
for loan losses to non-performing loans |
|
167.99 |
% |
|
176.91 |
% |
|
157.05 |
% |
|
104.56 |
% |
|
118.72 |
% |
Non-performing loans to total loans |
|
0.60 |
% |
|
0.58 |
% |
|
0.69 |
% |
|
1.10 |
% |
|
0.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity to total assets |
|
9.05 |
% |
|
9.37 |
% |
|
9.77 |
% |
|
9.92 |
% |
|
9.93 |
% |
* Core deposits are defined as total deposits less time
deposits
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
|
Three Months Ended March 31, |
(Dollars in Thousands, Except Per Share Data) |
|
2018 |
|
2017 |
GAAP net
income |
|
$ |
3,208 |
|
|
$ |
2,686 |
|
Less: net securities
(losses) gains, net of tax |
|
(32 |
) |
|
131 |
|
Non-GAAP operating
earnings |
|
$ |
3,240 |
|
|
$ |
2,555 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Return on average
assets (ROA) |
|
0.86 |
% |
|
0.79 |
% |
Less: net securities
(losses) gains, net of tax |
|
(0.01 |
)% |
|
0.04 |
% |
Non-GAAP operating
ROA |
|
0.87 |
% |
|
0.75 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Return on average
equity (ROE) |
|
9.18 |
% |
|
7.69 |
% |
Less: net securities
(losses) gains, net of tax |
|
(0.09 |
)% |
|
0.37 |
% |
Non-GAAP operating
ROE |
|
9.27 |
% |
|
7.32 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Basic earnings per
share (EPS) |
|
$ |
0.68 |
|
|
$ |
0.57 |
|
Less: net securities
(losses) gains, net of tax |
|
(0.01 |
) |
|
0.03 |
|
Non-GAAP basic
operating EPS |
|
$ |
0.69 |
|
|
$ |
0.54 |
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Dilutive EPS |
|
$ |
0.68 |
|
|
$ |
0.56 |
|
Less: net securities
(losses) gains, net of tax |
|
(0.01 |
) |
|
0.02 |
|
Non-GAAP dilutive
operating EPS |
|
$ |
0.69 |
|
|
$ |
0.54 |
|
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