Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc., supported by
loan and deposit growth, achieved net income of $3.9 million for
the three months ended March 31, 2019, resulting in basic and
diluted earnings per share of $0.84.
Highlights
- Net income, as reported under GAAP, for the three months ended
March 31, 2019 was $3.9 million, compared to $3.2 million for
the same period of 2018. Results for the three months ended
March 31, 2019 compared to 2018 were impacted by an increase
in after-tax securities gains of $84,000 (from a loss of $32,000 to
a gain of $52,000) for the three month periods.
- Basic and diluted earnings per share for the three months ended
March 31, 2019 was $0.84, an increase in basic and diluted earnings
per share of $0.16 as compared to the three months ended March 31,
2018.
- Return on average assets was 0.95% for the three months ended
March 31, 2019, compared to 0.86% for the corresponding period of
2018.
- Return on average equity was 10.93% for the three months ended
March 31, 2019, compared to 9.18% for the corresponding period of
2018.
Net Income
Net income from core operations (“adjusted
earnings”), which is a non-generally accepted accounting principles
(GAAP) measure of net income excluding net securities gains or
losses, was $3.9 million for the three months ended March 31,
2019 compared to $3.2 million for the same period of 2018.
Operating earnings per share for the three months ended
March 31, 2019 was $0.83 basic and diluted, an increase from
$0.69 basic and diluted operating earnings per share for the same
period of 2018. Operating return on average assets and
operating return on average equity were 0.94% and 10.79% for the
three months ended March 31, 2019, compared to 0.87% and 9.27% for
the corresponding periods of 2018.
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 this press release to the comparable GAAP financial
measures is included at the end of this press release.
Net Interest Margin
The net interest margin for the three months
ended March 31, 2019 was 3.37%, compared to 3.31% for the
corresponding period of 2018. The increase in the net
interest margin was driven by an increase in the yield on earning
assets of 45 basis points ("bps") for the three month period.
The impact of the increase in yield on earning assets was limited
by the increase in rate paid on interest-bearing liabilities of 48
bps for the three month period. The increase in the yield on
earning assets was driven by an increase in the loan portfolio
yield in conjunction with an increase in the average loan portfolio
of $122.5 million. The loan growth was primarily funded by an
increase in average total deposits of $96.7 million along with
growth in average total borrowings of $63.9 million for the three
month period.
Assets
Total assets increased $178.0 million to $1.7
billion at March 31, 2019 compared to March 31,
2018. Net loans increased $102.8 million to $1.4 billion at
March 31, 2019 compared to March 31, 2018, primarily due
to campaigns related to increasing home equity product market share
and indirect auto lending. The investment portfolio increased $26.8
million from March 31, 2018 to March 31, 2019 due to
increases in the taxable municipal portfolio and restricted
stock.
Non-performing Loans
The ratio of non-performing loans to total loans
ratio increased to 1.14% at March 31, 2019 from 0.58% at
March 31, 2018 as non-performing loans have increased to $15.8
million at March 31, 2019 from $7.6 million at March 31,
2018 primarily due to a commercial loan relationship that became
non-performing during the last three months of 2018. 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
$405,000 for the three months ended March 31, 2019 minimally
impacted the allowance for loan losses, which was 1.00% of total
loans at March 31, 2019. The majority of the loans charged-off
had a specific allowance within the allowance for loan losses.
Deposits
Deposits increased $116.6 million to $1.3
billion at March 31, 2019 compared to March 31,
2018. Noninterest-bearing deposits increased $17.4 million to
$321.7 million at March 31, 2019 compared to March 31,
2018. Driving deposit growth is our commitment to easy-to-use
products, community involvement, emphasis on customer service, and
the opening of a new branch in Pittston, Pennsylvania.
Deposit gathering efforts have centered on core deposits as
building customer relationships remains the focus. The time
deposit portfolio has increased as time deposits have been used as
a customer attraction tool. This has led to the average
maturity of the time deposit portfolio being lengthened.
Shareholders’ Equity
Shareholders’ equity increased $8.9 million to
$147.0 million at March 31, 2019 compared to March 31,
2018. The change in accumulated other comprehensive loss from
$6.6 million at March 31, 2018 to $5.0 million at
March 31, 2019 is a result of an increase in unrealized gains
on available for sale securities (from an unrealized loss of
$1,739,000 at March 31, 2018 to an unrealized gain of $197,000 at
March 31, 2019). The amount of accumulated other comprehensive
loss at March 31, 2019 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 $353,000. The current level of
shareholders’ equity equates to a book value per share of $31.33 at
March 31, 2019 compared to $29.45 at March 31, 2018 and
an equity to asset ratio of 8.62% at March 31, 2019, compared
to 9.05% at March 31, 2018. Excluding goodwill and
intangibles, book value per share was $27.45 at March 31,
2019, compared to $25.51 at March 31, 2018. Dividends
declared for the three months ended March 31, 2019 and 2018 were
$0.47 per share.
During the second quarter of 2019, the Company
expects to offer approximately $10.0 million of a new series of
non-cumulative, preferred stock to a limited number of accredited
investors in a private placement transaction. The preferred
stock would be structured to qualify as Tier 1 capital for bank
regulatory purposes. The proceeds of the offering would be
used for general corporate purposes, including funding organic
growth. There can be no assurance that the offering will be
completed during the second quarter of 2019 or otherwise. Any
shares of preferred stock offered and sold will not be registered
under the Securities Act of 1933 and may not be offered or sold
absent registration or an applicable exemption from registration
requirements.
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. Because 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, 2018.
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 Officer |
|
110 Reynolds
Street |
|
Williamsport,
PA 17702 |
|
570-322-1111 |
e-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) |
|
2019 |
|
2018 |
|
% Change |
ASSETS: |
|
|
|
|
|
|
Noninterest-bearing
balances |
|
$ |
31,211 |
|
|
$ |
18,940 |
|
|
64.79 |
% |
Interest-bearing
balances in other financial institutions |
|
42,385 |
|
|
18,452 |
|
|
129.70 |
% |
Total
cash and cash equivalents |
|
73,596 |
|
|
37,392 |
|
|
96.82 |
% |
|
|
|
|
|
|
|
|
Investment debt
securities, available for sale, at fair value |
|
141,762 |
|
|
116,444 |
|
|
21.74 |
% |
Investment equity
securities, at fair value |
|
1,819 |
|
|
2,482 |
|
|
(26.71 |
)% |
Investment securities,
trading |
|
42 |
|
|
159 |
|
|
(73.58 |
)% |
Restricted investment
in bank stock, at fair value |
|
15,725 |
|
|
13,483 |
|
|
16.63 |
% |
Loans held for
sale |
|
1,787 |
|
|
748 |
|
|
138.90 |
% |
Loans |
|
1,384,470 |
|
|
1,280,748 |
|
|
8.10 |
% |
Allowance for loan
losses |
|
(13,792 |
) |
|
(12,836 |
) |
|
7.45 |
% |
Loans,
net |
|
1,370,678 |
|
|
1,267,912 |
|
|
8.11 |
% |
Premises and equipment,
net |
|
33,270 |
|
|
27,587 |
|
|
20.60 |
% |
Accrued interest
receivable |
|
5,542 |
|
|
4,456 |
|
|
24.37 |
% |
Bank-owned life
insurance |
|
28,812 |
|
|
28,169 |
|
|
2.28 |
% |
Goodwill |
|
17,104 |
|
|
17,104 |
|
|
— |
% |
Intangibles |
|
1,091 |
|
|
1,382 |
|
|
(21.06 |
)% |
Operating lease right
of use asset |
|
4,239 |
|
|
— |
|
|
n/a |
|
Deferred tax asset |
|
4,241 |
|
|
4,721 |
|
|
(10.17 |
)% |
Other assets |
|
5,000 |
|
|
4,706 |
|
|
6.25 |
% |
TOTAL ASSETS |
|
$ |
1,704,708 |
|
|
$ |
1,526,745 |
|
|
11.66 |
% |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Interest-bearing
deposits |
|
$ |
987,404 |
|
|
$ |
888,193 |
|
|
11.17 |
% |
Noninterest-bearing
deposits |
|
321,657 |
|
|
304,261 |
|
|
5.72 |
% |
Total
deposits |
|
1,309,061 |
|
|
1,192,454 |
|
|
9.78 |
% |
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
84,499 |
|
|
59,305 |
|
|
42.48 |
% |
Long-term
borrowings |
|
144,631 |
|
|
123,970 |
|
|
16.67 |
% |
Accrued interest
payable |
|
1,278 |
|
|
793 |
|
|
61.16 |
% |
Operating lease
liability |
|
4,241 |
|
|
— |
|
|
n/a |
|
Other liabilities |
|
13,962 |
|
|
12,110 |
|
|
15.29 |
% |
TOTAL LIABILITIES |
|
1,557,672 |
|
|
1,388,632 |
|
|
12.17 |
% |
|
|
|
|
|
|
|
|
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; 5,012,273 and 5,009,898 shares
issued; 4,691,752 and 4,689,748 outstanding |
|
41,767 |
|
|
41,748 |
|
|
0.05 |
% |
Additional paid-in
capital |
|
50,890 |
|
|
50,199 |
|
|
1.38 |
% |
Retained earnings |
|
71,526 |
|
|
64,905 |
|
|
10.20 |
% |
Accumulated other
comprehensive loss: |
|
|
|
|
|
|
|
Net
unrealized gain (loss) on available for sale securities |
|
197 |
|
|
(1,739 |
) |
|
111.33 |
% |
Defined
benefit plan |
|
(5,239 |
) |
|
(4,886 |
) |
|
(7.22 |
)% |
Treasury stock at cost,
320,150 |
|
(12,115 |
) |
|
(12,115 |
) |
|
— |
% |
TOTAL PENNS WOODS
BANCORP, INC. SHAREHOLDERS' EQUITY |
|
147,026 |
|
|
138,112 |
|
|
6.45 |
% |
Non-controlling
interest |
|
10 |
|
|
1 |
|
|
900.00 |
% |
TOTAL SHAREHOLDERS'
EQUITY |
|
147,036 |
|
|
138,113 |
|
|
6.46 |
% |
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
1,704,708 |
|
|
$ |
1,526,745 |
|
|
11.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP,
INC.CONSOLIDATED STATEMENT OF
INCOME(UNAUDITED)
|
|
Three Months Ended March 31, |
(In Thousands, Except Per Share Data) |
|
2019 |
|
2018 |
|
% Change |
INTEREST AND DIVIDEND
INCOME: |
|
|
|
|
|
|
Loans including
fees |
|
$ |
14,869 |
|
|
$ |
12,193 |
|
|
21.95 |
% |
Investment
securities: |
|
|
|
|
|
|
|
Taxable |
|
934 |
|
|
546 |
|
|
71.06 |
% |
Tax-exempt |
|
174 |
|
|
241 |
|
|
(27.80 |
)% |
Dividend
and other interest income |
|
457 |
|
|
221 |
|
|
106.79 |
% |
TOTAL INTEREST AND
DIVIDEND INCOME |
|
16,434 |
|
|
13,201 |
|
|
24.49 |
% |
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
Deposits |
|
2,300 |
|
|
1,222 |
|
|
88.22 |
% |
Short-term
borrowings |
|
605 |
|
|
224 |
|
|
170.09 |
% |
Long-term
borrowings |
|
851 |
|
|
602 |
|
|
41.36 |
% |
TOTAL INTEREST
EXPENSE |
|
3,756 |
|
|
2,048 |
|
|
83.40 |
% |
|
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
12,678 |
|
|
11,153 |
|
|
13.67 |
% |
|
|
|
|
|
|
|
|
PROVISION FOR LOAN
LOSSES |
|
360 |
|
|
160 |
|
|
125.00 |
% |
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES |
|
12,318 |
|
|
10,993 |
|
|
12.05 |
% |
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
Service
charges |
|
562 |
|
|
551 |
|
|
2.00 |
% |
Debt securities gains,
available for sale |
|
13 |
|
|
(9 |
) |
|
(244.44 |
)% |
Equity securities gains
(losses) |
|
43 |
|
|
(34 |
) |
|
226.47 |
% |
Securities gains
(losses), trading |
|
10 |
|
|
3 |
|
|
(233.33 |
)% |
Bank-owned life
insurance |
|
168 |
|
|
173 |
|
|
(2.89 |
)% |
Gain on sale of
loans |
|
316 |
|
|
255 |
|
|
23.92 |
% |
Insurance
commissions |
|
134 |
|
|
117 |
|
|
14.53 |
% |
Brokerage
commissions |
|
323 |
|
|
343 |
|
|
(5.83 |
)% |
Debit card
income |
|
310 |
|
|
333 |
|
|
(6.91 |
)% |
Other |
|
375 |
|
|
349 |
|
|
7.45 |
% |
TOTAL NON-INTEREST
INCOME |
|
2,254 |
|
|
2,081 |
|
|
8.31 |
% |
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
5,501 |
|
|
5,048 |
|
|
8.97 |
% |
Occupancy |
|
779 |
|
|
741 |
|
|
5.13 |
% |
Furniture and
equipment |
|
752 |
|
|
747 |
|
|
0.67 |
% |
Software
Amortization |
|
207 |
|
|
65 |
|
|
218.46 |
% |
Pennsylvania shares
tax |
|
293 |
|
|
277 |
|
|
5.78 |
% |
Professional
Fees |
|
522 |
|
|
566 |
|
|
(7.77 |
)% |
Federal Deposit
Insurance Corporation deposit insurance |
|
268 |
|
|
202 |
|
|
32.67 |
% |
Marketing |
|
102 |
|
|
251 |
|
|
(59.36 |
)% |
Intangible
amortization |
|
71 |
|
|
80 |
|
|
(11.25 |
)% |
Other |
|
1,319 |
|
|
1,300 |
|
|
1.46 |
% |
TOTAL NON-INTEREST
EXPENSE |
|
9,814 |
|
|
9,277 |
|
|
5.79 |
% |
INCOME BEFORE INCOME
TAX PROVISION |
|
4,758 |
|
|
3,797 |
|
|
25.31 |
% |
INCOME TAX
PROVISION |
|
812 |
|
|
589 |
|
|
37.86 |
% |
NET INCOME |
|
$ |
3,946 |
|
|
$ |
3,208 |
|
|
23.00 |
% |
Earnings attributable
to noncontrolling interest |
|
2 |
|
|
(1 |
) |
|
300.00 |
% |
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS' |
|
$ |
3,944 |
|
|
$ |
3,209 |
|
|
22.90 |
% |
EARNINGS PER SHARE -
BASIC |
|
$ |
0.84 |
|
|
$ |
0.68 |
|
|
23.53 |
% |
EARNINGS PER SHARE -
DILUTED |
|
$ |
0.84 |
|
|
$ |
0.68 |
|
|
23.53 |
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC |
|
4,691,752 |
|
|
4,689,376 |
|
|
0.05 |
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED |
|
4,691,752 |
|
|
4,689,376 |
|
|
0.05 |
% |
DIVIDENDS DECLARED PER
SHARE |
|
$ |
0.47 |
|
|
$ |
0.47 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP,
INC.AVERAGE BALANCES AND INTEREST
RATES
|
|
Three Months Ended |
|
|
March 31, 2019 |
|
March 31, 2018 |
(Dollars in Thousands) |
|
AverageBalance |
|
Interest |
|
AverageRate |
|
AverageBalance |
|
Interest |
|
AverageRate |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt loans |
|
$ |
72,714 |
|
|
$ |
539 |
|
|
3.01 |
% |
|
$ |
75,448 |
|
|
$ |
567 |
|
|
3.05 |
% |
All other loans |
|
1,311,315 |
|
|
14,443 |
|
|
4.47 |
% |
|
1,186,117 |
|
|
11,745 |
|
|
4.02 |
% |
Total loans |
|
1,384,029 |
|
|
14,982 |
|
|
4.39 |
% |
|
1,261,565 |
|
|
12,312 |
|
|
3.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
126,033 |
|
|
1,350 |
|
|
4.28 |
% |
|
84,267 |
|
|
759 |
|
|
3.60 |
% |
Tax-exempt
securities |
|
26,711 |
|
|
220 |
|
|
3.29 |
% |
|
42,160 |
|
|
305 |
|
|
2.89 |
% |
Total securities |
|
152,744 |
|
|
1,570 |
|
|
4.11 |
% |
|
126,427 |
|
|
1,064 |
|
|
3.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
6,534 |
|
|
41 |
|
|
2.54 |
% |
|
2,167 |
|
|
8 |
|
|
1.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets |
|
1,543,307 |
|
|
16,593 |
|
|
4.35 |
% |
|
1,390,159 |
|
|
13,384 |
|
|
3.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
111,600 |
|
|
|
|
|
|
97,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,654,907 |
|
|
|
|
|
|
$ |
1,487,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
166,927 |
|
|
30 |
|
|
0.07 |
% |
|
$ |
163,037 |
|
|
16 |
|
|
0.04 |
% |
Super Now deposits |
|
231,508 |
|
|
379 |
|
|
0.66 |
% |
|
227,086 |
|
|
207 |
|
|
0.37 |
% |
Money market
deposits |
|
241,402 |
|
|
472 |
|
|
0.79 |
% |
|
236,443 |
|
|
210 |
|
|
0.36 |
% |
Time deposits |
|
299,644 |
|
|
1,419 |
|
|
1.92 |
% |
|
236,116 |
|
|
789 |
|
|
1.36 |
% |
Total interest-bearing
deposits |
|
939,481 |
|
|
2,300 |
|
|
0.99 |
% |
|
862,682 |
|
|
1,222 |
|
|
0.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
96,029 |
|
|
605 |
|
|
2.56 |
% |
|
61,803 |
|
|
224 |
|
|
1.45 |
% |
Long-term
borrowings |
|
144,191 |
|
|
851 |
|
|
2.23 |
% |
|
114,526 |
|
|
602 |
|
|
2.10 |
% |
Total borrowings |
|
240,220 |
|
|
1,456 |
|
|
2.36 |
% |
|
176,329 |
|
|
826 |
|
|
1.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities |
|
1,179,701 |
|
|
3,756 |
|
|
1.27 |
% |
|
1,039,011 |
|
|
2,048 |
|
|
0.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
313,112 |
|
|
|
|
|
|
293,227 |
|
|
|
|
|
Other liabilities |
|
17,776 |
|
|
|
|
|
|
15,786 |
|
|
|
|
|
Shareholders’
equity |
|
144,318 |
|
|
|
|
|
|
139,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
1,654,907 |
|
|
|
|
|
|
$ |
1,487,765 |
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.11 |
% |
Net interest
income/margin |
|
|
|
$ |
12,837 |
|
|
3.37 |
% |
|
|
|
$ |
11,336 |
|
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
Total interest
income |
|
$ |
16,434 |
|
|
$ |
13,201 |
|
Total interest
expense |
|
3,756 |
|
|
2,048 |
|
Net interest
income |
|
12,678 |
|
|
11,153 |
|
Tax equivalent
adjustment |
|
159 |
|
|
183 |
|
Net interest income
(fully taxable equivalent) |
|
$ |
12,837 |
|
|
$ |
11,336 |
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share Data) |
|
Quarter Ended |
|
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
3/31/2018 |
Operating
Data |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
3,944 |
|
|
$ |
4,189 |
|
|
$ |
3,826 |
|
|
$ |
3,480 |
|
|
$ |
3,209 |
|
Net
interest income |
|
12,678 |
|
|
12,699 |
|
|
12,255 |
|
|
11,703 |
|
|
11,153 |
|
Provision
for loan losses |
|
360 |
|
|
760 |
|
|
480 |
|
|
335 |
|
|
160 |
|
Net
security gains (losses) |
|
66 |
|
|
(165 |
) |
|
(24 |
) |
|
15 |
|
|
(40 |
) |
Non-interest income, ex. net security gains (losses) |
|
2,188 |
|
|
2,594 |
|
|
2,613 |
|
|
2,347 |
|
|
2,368 |
|
Non-interest expense |
|
9,814 |
|
|
9,532 |
|
|
9,681 |
|
|
9,517 |
|
|
9,524 |
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Statistics |
|
|
|
|
|
|
|
|
|
|
Net
interest margin |
|
3.37 |
% |
|
3.33 |
% |
|
3.30 |
% |
|
3.32 |
% |
|
3.31 |
% |
Annualized return on average assets |
|
0.95 |
% |
|
1.02 |
% |
|
0.96 |
% |
|
0.91 |
% |
|
0.86 |
% |
Annualized return on average equity |
|
10.93 |
% |
|
11.77 |
% |
|
10.94 |
% |
|
10.07 |
% |
|
9.18 |
% |
Annualized net loan charge-offs to average loans |
|
0.12 |
% |
|
0.08 |
% |
|
0.05 |
% |
|
0.04 |
% |
|
0.06 |
% |
Net
charge-offs |
|
405 |
|
|
266 |
|
|
171 |
|
|
137 |
|
|
182 |
|
Efficiency ratio |
|
65.5 |
% |
|
61.9 |
% |
|
64.6 |
% |
|
67.2 |
% |
|
69.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
|
$ |
0.84 |
|
|
$ |
0.89 |
|
|
$ |
0.82 |
|
|
$ |
0.74 |
|
|
$ |
0.68 |
|
Diluted
earnings per share |
|
0.84 |
|
|
0.89 |
|
|
0.82 |
|
|
0.74 |
|
|
0.68 |
|
Dividend
declared per share |
|
0.47 |
|
|
0.47 |
|
|
0.47 |
|
|
0.47 |
|
|
0.47 |
|
Book
value |
|
31.33 |
|
|
30.59 |
|
|
29.96 |
|
|
29.66 |
|
|
29.45 |
|
Common
stock price: |
|
|
|
|
|
|
|
|
|
|
High |
|
44.50 |
|
|
44.18 |
|
|
46.27 |
|
|
46.92 |
|
|
45.56 |
|
Low |
|
34.84 |
|
|
38.66 |
|
|
43.22 |
|
|
41.29 |
|
|
39.61 |
|
Close |
|
41.10 |
|
|
40.24 |
|
|
43.45 |
|
|
44.78 |
|
|
42.31 |
|
Weighted
average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
4,692 |
|
|
4,691 |
|
|
4,691 |
|
|
4,690 |
|
|
4,689 |
|
Fully
Diluted |
|
4,692 |
|
|
4,691 |
|
|
4,691 |
|
|
4,703 |
|
|
4,689 |
|
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
Issued |
|
5,012 |
|
|
5,012 |
|
|
5,011 |
|
|
5,011 |
|
|
5,010 |
|
Treasury |
|
320 |
|
|
320 |
|
|
320 |
|
|
320 |
|
|
320 |
|
(Dollars in Thousands, Except Per Share Data) |
|
Quarter Ended |
|
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
3/31/2018 |
Financial
Condition Data: |
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,704,708 |
|
|
$ |
1,684,771 |
|
|
$ |
1,670,348 |
|
|
$ |
1,603,273 |
|
|
$ |
1,526,745 |
|
Loans,
net |
|
1,370,678 |
|
|
1,370,920 |
|
|
1,355,762 |
|
|
1,318,039 |
|
|
1,267,912 |
|
Goodwill |
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
Intangibles |
|
1,091 |
|
|
1,162 |
|
|
1,233 |
|
|
1,304 |
|
|
1,382 |
|
Total
deposits |
|
1,309,061 |
|
|
1,219,903 |
|
|
1,210,477 |
|
|
1,191,019 |
|
|
1,192,454 |
|
Noninterest-bearing |
|
321,657 |
|
|
320,814 |
|
|
313,111 |
|
|
311,194 |
|
|
304,261 |
|
Savings |
|
170,005 |
|
|
166,063 |
|
|
164,449 |
|
|
166,183 |
|
|
166,243 |
|
NOW |
|
253,475 |
|
|
207,819 |
|
|
223,963 |
|
|
216,109 |
|
|
240,259 |
|
Money
Market |
|
244,753 |
|
|
238,596 |
|
|
238,131 |
|
|
245,081 |
|
|
235,381 |
|
Time
Deposits |
|
319,171 |
|
|
286,611 |
|
|
270,823 |
|
|
252,452 |
|
|
246,310 |
|
Total
interest-bearing deposits |
|
987,404 |
|
|
899,089 |
|
|
897,366 |
|
|
879,825 |
|
|
888,193 |
|
|
|
|
|
|
|
|
|
|
|
|
Core
deposits* |
|
989,890 |
|
|
933,292 |
|
|
939,654 |
|
|
938,567 |
|
|
946,144 |
|
Shareholders’ equity |
|
147,026 |
|
|
143,536 |
|
|
140,538 |
|
|
139,134 |
|
|
138,112 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
15,794 |
|
|
$ |
16,572 |
|
|
$ |
8,739 |
|
|
$ |
7,132 |
|
|
$ |
7,641 |
|
Non-performing loans to total assets |
|
0.93 |
% |
|
0.98 |
% |
|
0.52 |
% |
|
0.44 |
% |
|
0.50 |
% |
Allowance
for loan losses |
|
13,792 |
|
|
13,837 |
|
|
13,343 |
|
|
13,034 |
|
|
12,836 |
|
Allowance
for loan losses to total loans |
|
1.00 |
% |
|
1.00 |
% |
|
0.97 |
% |
|
0.98 |
% |
|
1.00 |
% |
Allowance
for loan losses to non-performing loans |
|
87.32 |
% |
|
83.50 |
% |
|
152.68 |
% |
|
182.75 |
% |
|
167.99 |
% |
Non-performing loans to total loans |
|
1.14 |
% |
|
1.20 |
% |
|
0.64 |
% |
|
0.54 |
% |
|
0.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity to total assets |
|
8.62 |
% |
|
8.52 |
% |
|
8.41 |
% |
|
8.68 |
% |
|
9.05 |
% |
* 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) |
|
2019 |
|
2018 |
GAAP net income |
|
$ |
3,944 |
|
|
$ |
3,209 |
|
Less: net securities
gains (losses), net of tax |
|
52 |
|
|
(32 |
) |
Non-GAAP operating
earnings |
|
$ |
3,892 |
|
|
$ |
3,241 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
Return on average
assets (ROA) |
|
0.95 |
% |
|
0.86 |
% |
Less: net securities
gains (losses), net of tax |
|
0.01 |
% |
|
(0.01 |
)% |
Non-GAAP operating
ROA |
|
0.94 |
% |
|
0.87 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
Return on average
equity (ROE) |
|
10.93 |
% |
|
9.18 |
% |
Less: net securities
gains (losses), net of tax |
|
0.14 |
% |
|
(0.09 |
)% |
Non-GAAP operating
ROE |
|
10.79 |
% |
|
9.27 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
Basic earnings per
share (EPS) |
|
$ |
0.84 |
|
|
$ |
0.68 |
|
Less: net securities
gains (losses), net of tax |
|
0.01 |
|
|
(0.01 |
) |
Non-GAAP basic
operating EPS |
|
$ |
0.83 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
Diluted EPS |
|
$ |
0.84 |
|
|
$ |
0.68 |
|
Less: net securities
gains (losses), net of tax |
|
0.01 |
|
|
(0.01 |
) |
Non-GAAP diluted
operating EPS |
|
$ |
0.83 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
Penns Woods Bancorp (NASDAQ:PWOD)
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