Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc. achieved net
income of $3.4 million for the three months ended March 31, 2021,
resulting in basic and diluted earnings per share of $0.49.
Highlights
- Net income, as reported under GAAP,
for the three months ended March 31, 2021 was $3.4 million
compared to $3.1 million for the same period of 2020. Results for
the three months ended March 31, 2021 compared to 2020 were
impacted by an increase in after-tax securities gains of $72,000
(from a gain of $22,000 to a gain of $94,000) for the three month
period.
- Gain on sale of loans increased
$464,000 for the three months ended March 31, 2021, to $908,000,
compared to $444,000 for the 2020 period. The increase is the
result of a significant increase in the number of consumers who are
refinancing their mortgage due to the current low interest rate
environment.
- The provision for loan losses
decreased $235,000 for the three months ended March 31, 2021, to
$515,000, compared to $750,000 for the 2020 period. The provision
for loan losses was elevated in 2020 due primarily to the
uncertainty caused by the COVID-19 pandemic.
- Basic and diluted earnings per
share for the three months ended March 31, 2021 was $0.49. Basic
earnings per share for the three months ended March 31, 2020 was
$0.44 with diluted earnings per share of $0.43.
- Return on average assets was 0.75%
for the three months ended March 31, 2021, compared to 0.74% for
the corresponding period of 2020.
- Return on average equity was 8.59%
for the three months ended March 31, 2021, compared to 7.83% for
the corresponding period of 2020.
COVID-19 Activity
- Approximately one third of
employees working remotely.
- As of March 31, 2021, loan
modification/deferral program in place to defer payments up to 180
days for principal and/or interest with only $12.3 million in loan
principal remaining in deferral.
- All COVID-19 related loan deferrals
meet the requirements to not be considered a troubled debt
restructuring.
- Participated in the Paycheck
Protection Program ("PPP") by primarily utilizing third parties to
service and place the loans.
- Significantly reduced deposit rates
during the latter half of March 2020 continuing through December
2020.
- Total paycheck protection program
loans originated to be held on balance sheet at March 31, 2021
total $19.8 million.
Net Income
Net income from core operations (“core
earnings”), which is a non-generally accepted accounting principles
(GAAP) measure of net income excluding net securities gains or
losses, was $3.3 million for the three months ended March 31,
2021 compared to $3.1 million for the same period of 2020. Core
earnings per share for the three months ended March 31, 2021
were $0.47 basic and diluted, compared to $0.44 basic and $0.43
diluted core earnings per share for the same period of 2020. Core
return on average assets and core return on average equity were
0.73% and 8.35% for the three months ended March 31, 2021, compared
to 0.73% and 7.77% for the corresponding period of 2020. A
reconciliation of the non-GAAP financial measures of core earnings,
core return on assets, core return on equity, and core 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, 2021 was 2.88%, compared to and 3.19% for the
corresponding period of 2020. The decrease in the net interest
margin was driven by a decrease in the yield of the loan portfolio
of 31 basis points ("bps"), while the investment portfolio yield
declined 77 bps, respectively, during the current low interest rate
environment. Further compressing the net interest margin was the
significant increase of interest-bearing deposits. These deposits
carry a current yield of a few basis points as commercial customers
have received PPP funding and retail customers have received
stimulus funding. Rates paid on interest-bearing deposit
liabilities decreased 60 bps as rates paid were decreased
significantly during 2020 due to the economic impact of COVID-19
prolonging the low interest rate environment. These deposit rate
decreases have partially offset the decline in earning asset
yield.
Assets
Total assets increased $207.7 million to $1.9
billion at March 31, 2021 compared to March 31,
2020. Cash and cash equivalents increased significantly due
to deposit growth resulting from the various economic recovery
programs instituted at the state and federal levels that impacted
both commercial and retail customers, coupled with customers
becoming more risk adverse and seeking safety in a bank deposit.
Net loans decreased $15.2 million to $1.3 billion at March 31,
2021 compared to March 31, 2020, as the COVID-19 business and
travel restrictions curtailed various lending activities such as
indirect auto, home equity, and commercial. Lending activity began
to rebound as business and travel restrictions were lessened during
the second half of 2020 and continues to rebound in 2021. The
investment portfolio increased $11.8 million from March 31,
2020 to March 31, 2021 as a portion of the excess cash
liquidity was invested into short-term municipal bonds.
Non-performing Loans
The ratio of non-performing loans to total loans
ratio decreased to 0.69% at March 31, 2021 from 0.84% at
March 31, 2020 as non-performing loans have decreased to $9.3
million at March 31, 2021 from $11.3 million at March 31,
2020 primarily due to a commercial loan relationship that was
paid-off during the fourth quarter of 2020. 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
$116,000 for the three months ended March 31, 2021 impacted the
allowance for loan losses, which was 1.06% of total loans at
March 31, 2021 compared to 0.93% at March 31, 2020
Deposits
Deposits increased $237.6 million to $1.6
billion at March 31, 2021 compared to March 31, 2020.
Noninterest-bearing deposits increased $146.2 million to $478.9
million at March 31, 2021 compared to March 31, 2020.
Driving deposit growth was the receipt of PPP funding by
commercial customers, stimulus funding by retail customers, and
customers becoming more risk averse and seeking safety in a bank
deposit. Emphasis remains on increasing the utilization of
electronic (internet and mobile) deposit banking among our
customers. Utilization of internet and mobile banking has increased
since the start of 2020 due to these efforts coupled with a change
in consumer behavior due to the business and travel restrictions
caused by the COVID-19 pandemic.
Shareholders’ Equity
Shareholders’ equity increased $7.5 million to
$164.1 million at March 31, 2021 compared to March 31,
2020. Accumulated other comprehensive loss of $2.5 million at
March 31, 2021 increased from a loss of $2.2 million at March 31,
2020 primarily as a result of a change in the net excess of the
projected benefit obligations under the defined benefit plan over
the fair value of the plan’s assets, resulting in an increase in
the net loss of $361,000, offset by an increase in unrealized gains
on available for sale securities (from an unrealized gain of $3.0
million at March 31, 2020 to an unrealized gain of $3.1 million at
March 31, 2021). The current level of shareholders’ equity equates
to a book value per share of $23.25 at March 31, 2021 compared
to $22.23 at March 31, 2020, and an equity to asset ratio of
8.65% at March 31, 2021 compared to 9.27% at March 31,
2020. Dividends declared for the three months ended March 31,
2021 and 2020 were $0.32 per share, respectively.
Penns Woods Bancorp, Inc. is the parent
company of Jersey Shore State Bank, which operates eighteen branch
offices providing financial services in Lycoming, Clinton, Centre,
Montour, Union, and Blair Counties, and Luzerne Bank, which
operates eight 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; (v)
the effects of health emergencies, including the spread of
infectious diseases or pandemics; or (vi) 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, 2020.
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) |
|
2021 |
|
2020 |
|
% Change |
ASSETS: |
|
|
|
|
|
|
Noninterest-bearing balances |
|
$ |
28,539 |
|
|
$ |
29,572 |
|
|
(3.49 |
) |
% |
Interest-bearing balances in
other financial institutions |
|
249,149 |
|
|
48,189 |
|
|
417.02 |
|
% |
Total cash and cash equivalents |
|
277,688 |
|
|
77,761 |
|
|
257.10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment debt securities,
available for sale, at fair value |
|
166,895 |
|
|
155,522 |
|
|
7.31 |
|
% |
Investment equity securities,
at fair value |
|
1,265 |
|
|
1,281 |
|
|
(1.25 |
) |
% |
Investment securities,
trading |
|
44 |
|
|
37 |
|
|
18.92 |
|
% |
Restricted investment in bank
stock, at fair value |
|
15,032 |
|
|
14,611 |
|
|
2.88 |
|
% |
Loans held for sale |
|
2,568 |
|
|
4,294 |
|
|
(40.20 |
) |
% |
Loans |
|
1,335,899 |
|
|
1,349,400 |
|
|
(1.00 |
) |
% |
Allowance for loan losses |
|
(14,202 |
) |
|
(12,500 |
) |
|
13.62 |
|
% |
Loans, net |
|
1,321,697 |
|
|
1,336,900 |
|
|
(1.14 |
) |
% |
Premises and equipment,
net |
|
34,910 |
|
|
33,170 |
|
|
5.25 |
|
% |
Accrued interest
receivable |
|
8,583 |
|
|
5,307 |
|
|
61.73 |
|
% |
Bank-owned life insurance |
|
33,839 |
|
|
29,228 |
|
|
15.78 |
|
% |
Goodwill |
|
17,104 |
|
|
17,104 |
|
|
— |
|
% |
Intangibles |
|
618 |
|
|
836 |
|
|
(26.08 |
) |
% |
Operating lease right of use
asset |
|
3,088 |
|
|
3,278 |
|
|
(5.80 |
) |
% |
Deferred tax asset |
|
3,717 |
|
|
3,281 |
|
|
13.29 |
|
% |
Other assets |
|
9,144 |
|
|
5,898 |
|
|
55.04 |
|
% |
TOTAL ASSETS |
|
$ |
1,896,192 |
|
|
$ |
1,688,508 |
|
|
12.30 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,085,448 |
|
|
$ |
993,975 |
|
|
9.20 |
|
% |
Noninterest-bearing
deposits |
|
478,916 |
|
|
332,759 |
|
|
43.92 |
|
% |
Total deposits |
|
1,564,364 |
|
|
1,326,734 |
|
|
17.91 |
|
% |
Short-term borrowings |
|
6,650 |
|
|
17,741 |
|
|
(62.52 |
) |
% |
Long-term borrowings |
|
141,094 |
|
|
171,903 |
|
|
(17.92 |
) |
% |
Accrued interest payable |
|
988 |
|
|
1,635 |
|
|
(39.57 |
) |
% |
Operating lease liability |
|
3,130 |
|
|
3,299 |
|
|
(5.12 |
) |
% |
Other liabilities |
|
15,903 |
|
|
10,608 |
|
|
49.92 |
|
% |
TOTAL LIABILITIES |
|
1,732,129 |
|
|
1,531,920 |
|
|
13.07 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par value,
3,000,000 shares authorized; no shares issued |
|
— |
|
|
— |
|
|
n/a |
|
|
Common stock, par value $5.55,
22,500,000 shares authorized; 7,537,242 and 7,521,491 shares
issued; 7,057,017 and 7,041,266 shares outstanding |
|
41,873 |
|
|
41,786 |
|
|
0.21 |
|
% |
Additional paid-in
capital |
|
52,818 |
|
|
51,701 |
|
|
2.16 |
|
% |
Retained earnings |
|
83,948 |
|
|
77,403 |
|
|
8.46 |
|
% |
Accumulated other
comprehensive (loss) gain: |
|
|
|
|
|
|
Net unrealized gain on available for sale securities |
|
3,095 |
|
|
2,986 |
|
|
3.65 |
|
% |
Defined benefit plan |
|
(5,560 |
) |
|
(5,199 |
) |
|
(6.94 |
) |
% |
Treasury stock at cost,
480,225 |
|
(12,115 |
) |
|
(12,115 |
) |
|
— |
|
% |
TOTAL PENNS WOODS BANCORP,
INC. SHAREHOLDERS' EQUITY |
|
164,059 |
|
|
156,562 |
|
|
4.79 |
|
% |
Non-controlling interest |
|
4 |
|
|
26 |
|
|
(84.62 |
) |
% |
TOTAL SHAREHOLDERS'
EQUITY |
|
164,063 |
|
|
156,588 |
|
|
4.77 |
|
% |
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
1,896,192 |
|
|
$ |
1,688,508 |
|
|
12.30 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP, INC.CONSOLIDATED
STATEMENT OF INCOME(UNAUDITED) |
|
|
|
Three Months Ended March 31, |
(In Thousands, Except Per Share Data) |
|
2021 |
|
2020 |
|
% Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
Loans including fees |
|
$ |
13,345 |
|
|
$ |
14,657 |
|
|
(8.95 |
) |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
819 |
|
|
1,010 |
|
|
(18.91 |
) |
% |
Tax-exempt |
|
171 |
|
|
145 |
|
|
17.93 |
|
% |
Dividend and other interest income |
|
260 |
|
|
349 |
|
|
(25.50 |
) |
% |
TOTAL INTEREST AND DIVIDEND
INCOME |
|
14,595 |
|
|
16,161 |
|
|
(9.69 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,684 |
|
|
3,035 |
|
|
(44.51 |
) |
% |
Short-term borrowings |
|
2 |
|
|
22 |
|
|
(90.91 |
) |
% |
Long-term borrowings |
|
839 |
|
|
943 |
|
|
(11.03 |
) |
% |
TOTAL INTEREST EXPENSE |
|
2,525 |
|
|
4,000 |
|
|
(36.88 |
) |
% |
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
12,070 |
|
|
12,161 |
|
|
(0.75 |
) |
% |
|
|
|
|
|
|
|
PROVISION FOR LOAN LOSSES |
|
515 |
|
|
750 |
|
|
(31.33 |
) |
% |
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES |
|
11,555 |
|
|
11,411 |
|
|
1.26 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges |
|
383 |
|
|
549 |
|
|
(30.24 |
) |
% |
Debt securities gains,
available for sale |
|
138 |
|
|
21 |
|
|
557.14 |
|
% |
Equity securities (losses)
gains |
|
(23 |
) |
|
20 |
|
|
(215.00 |
) |
% |
Securities gains (losses),
trading |
|
4 |
|
|
(14 |
) |
|
128.57 |
|
% |
Bank-owned life insurance |
|
173 |
|
|
192 |
|
|
(9.90 |
) |
% |
Gain on sale of loans |
|
908 |
|
|
444 |
|
|
104.50 |
|
% |
Insurance commissions |
|
157 |
|
|
127 |
|
|
23.62 |
|
% |
Brokerage commissions |
|
219 |
|
|
369 |
|
|
(40.65 |
) |
% |
Debit card income |
|
380 |
|
|
274 |
|
|
38.69 |
|
% |
Other |
|
275 |
|
|
455 |
|
|
(39.56 |
) |
% |
TOTAL NON-INTEREST INCOME |
|
2,614 |
|
|
2,437 |
|
|
7.26 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
5,598 |
|
|
5,667 |
|
|
(1.22 |
) |
% |
Occupancy |
|
976 |
|
|
702 |
|
|
39.03 |
|
% |
Furniture and equipment |
|
809 |
|
|
860 |
|
|
(5.93 |
) |
% |
Software amortization |
|
198 |
|
|
250 |
|
|
(20.80 |
) |
% |
Pennsylvania shares tax |
|
352 |
|
|
285 |
|
|
23.51 |
|
% |
Professional fees |
|
583 |
|
|
622 |
|
|
(6.27 |
) |
% |
Federal Deposit Insurance
Corporation deposit insurance |
|
221 |
|
|
194 |
|
|
13.92 |
|
% |
Marketing |
|
63 |
|
|
53 |
|
|
18.87 |
|
% |
Intangible amortization |
|
53 |
|
|
62 |
|
|
(14.52 |
) |
% |
Other |
|
1,098 |
|
|
1,415 |
|
|
(22.40 |
) |
% |
TOTAL NON-INTEREST
EXPENSE |
|
9,951 |
|
|
10,110 |
|
|
(1.57 |
) |
% |
INCOME BEFORE INCOME TAX
PROVISION |
|
4,218 |
|
|
3,738 |
|
|
12.84 |
|
% |
INCOME TAX PROVISION |
|
771 |
|
|
661 |
|
|
16.64 |
|
% |
NET INCOME |
|
$ |
3,447 |
|
|
$ |
3,077 |
|
|
12.02 |
|
% |
Earnings attributable to
noncontrolling interest |
|
6 |
|
|
4 |
|
|
50.00 |
|
% |
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS' |
|
$ |
3,441 |
|
|
$ |
3,073 |
|
|
11.98 |
|
% |
EARNINGS PER SHARE -
BASIC |
|
$ |
0.49 |
|
|
$ |
0.44 |
|
|
11.36 |
|
% |
EARNINGS PER SHARE -
DILUTED |
|
$ |
0.49 |
|
|
$ |
0.43 |
|
|
13.95 |
|
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC |
|
7,055,116 |
|
|
7,040,740 |
|
|
0.20 |
|
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED |
|
7,055,116 |
|
|
7,102,990 |
|
|
(0.67 |
) |
% |
DIVIDENDS DECLARED PER
SHARE |
|
$ |
0.32 |
|
|
$ |
0.32 |
|
|
— |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
PENNS WOODS BANCORP, INC.AVERAGE BALANCES
AND INTEREST RATES |
|
|
|
Three Months Ended |
|
|
March 31, 2021 |
|
March 31, 2020 |
(Dollars in Thousands) |
|
Average Balance |
|
Interest |
|
Average Rate |
|
Average Balance |
|
Interest |
|
Average Rate |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt loans |
|
$ |
45,534 |
|
|
$ |
349 |
|
|
3.11 |
% |
|
$ |
52,979 |
|
|
$ |
404 |
|
|
3.07 |
% |
All other loans |
|
1,293,395 |
|
|
13,069 |
|
|
4.10 |
% |
|
1,303,838 |
|
|
14,338 |
|
|
4.42 |
% |
Total loans |
|
1,338,929 |
|
|
13,418 |
|
|
4.06 |
% |
|
1,356,817 |
|
|
14,742 |
|
|
4.37 |
% |
Taxable securities |
|
145,047 |
|
|
1,033 |
|
|
2.89 |
% |
|
142,788 |
|
|
1,273 |
|
|
3.63 |
% |
Tax-exempt securities |
|
36,369 |
|
|
216 |
|
|
2.41 |
% |
|
23,773 |
|
|
184 |
|
|
3.15 |
% |
Total securities |
|
181,416 |
|
|
1,249 |
|
|
2.79 |
% |
|
166,561 |
|
|
1,457 |
|
|
3.56 |
% |
Interest-bearing deposits |
|
195,995 |
|
|
46 |
|
|
0.10 |
% |
|
26,716 |
|
|
86 |
|
|
1.29 |
% |
Total interest-earning
assets |
|
1,716,340 |
|
|
14,713 |
|
|
3.48 |
% |
|
1,550,094 |
|
|
16,285 |
|
|
4.23 |
% |
Other assets |
|
124,074 |
|
|
|
|
|
|
|
|
|
112,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,840,414 |
|
|
|
|
|
|
|
|
|
$ |
1,662,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
214,636 |
|
|
44 |
|
|
0.08 |
% |
|
$ |
177,840 |
|
|
91 |
|
|
0.21 |
% |
Super Now deposits |
|
289,236 |
|
|
267 |
|
|
0.37 |
% |
|
219,826 |
|
|
424 |
|
|
0.78 |
% |
Money market deposits |
|
306,000 |
|
|
267 |
|
|
0.35 |
% |
|
210,708 |
|
|
477 |
|
|
0.91 |
% |
Time deposits |
|
254,460 |
|
|
1,106 |
|
|
1.76 |
% |
|
379,259 |
|
|
2,043 |
|
|
2.17 |
% |
Total interest-bearing
deposits |
|
1,064,332 |
|
|
1,684 |
|
|
0.64 |
% |
|
987,633 |
|
|
3,035 |
|
|
1.24 |
% |
Short-term borrowings |
|
5,680 |
|
|
2 |
|
|
0.14 |
% |
|
10,847 |
|
|
22 |
|
|
0.85 |
% |
Long-term borrowings |
|
141,483 |
|
|
839 |
|
|
2.40 |
% |
|
159,920 |
|
|
943 |
|
|
2.37 |
% |
Total borrowings |
|
147,163 |
|
|
841 |
|
|
2.32 |
% |
|
170,767 |
|
|
965 |
|
|
2.28 |
% |
Total interest-bearing
liabilities |
|
1,211,495 |
|
|
2,525 |
|
|
0.85 |
% |
|
1,158,400 |
|
|
4,000 |
|
|
1.39 |
% |
Demand deposits |
|
445,759 |
|
|
|
|
|
|
326,817 |
|
|
|
|
|
Other liabilities |
|
22,872 |
|
|
|
|
|
|
19,991 |
|
|
|
|
|
Shareholders’ equity |
|
160,288 |
|
|
|
|
|
|
157,105 |
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
1,840,414 |
|
|
|
|
|
|
$ |
1,662,313 |
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.84 |
% |
Net interest
income/margin |
|
|
|
$ |
12,188 |
|
|
2.88 |
% |
|
|
|
$ |
12,285 |
|
|
3.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Total interest income |
|
$ |
14,595 |
|
|
$ |
16,161 |
|
Total interest expense |
|
2,525 |
|
|
4,000 |
|
Net interest income |
|
12,070 |
|
|
12,161 |
|
Tax equivalent adjustment |
|
118 |
|
|
124 |
|
Net interest income (fully
taxable equivalent) |
|
$ |
12,188 |
|
|
$ |
12,285 |
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share Data) |
|
Quarter Ended |
|
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
Operating
Data |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
3,441 |
|
|
$ |
3,901 |
|
|
$ |
4,472 |
|
|
$ |
3,760 |
|
|
$ |
3,073 |
|
Net interest income |
|
12,070 |
|
|
11,967 |
|
|
11,845 |
|
|
12,250 |
|
|
12,161 |
|
Provision for loan losses |
|
515 |
|
|
585 |
|
|
645 |
|
|
645 |
|
|
750 |
|
Net security gains |
|
119 |
|
|
374 |
|
|
1,011 |
|
|
196 |
|
|
27 |
|
Non-interest income, excluding net security gains |
|
2,495 |
|
|
2,701 |
|
|
3,024 |
|
|
2,423 |
|
|
2,409 |
|
Non-interest expense |
|
9,951 |
|
|
9,640 |
|
|
9,707 |
|
|
9,611 |
|
|
10,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
2.88 |
% |
|
2.81 |
% |
|
2.76 |
% |
|
3.01 |
% |
|
3.19 |
% |
Annualized return on average assets |
|
0.75 |
% |
|
0.85 |
% |
|
0.97 |
% |
|
0.85 |
% |
|
0.74 |
% |
Annualized return on average equity |
|
8.59 |
% |
|
9.55 |
% |
|
11.05 |
% |
|
9.60 |
% |
|
7.83 |
% |
Annualized net loan charge-offs to average loans |
|
0.04 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.05 |
% |
|
0.04 |
% |
Net charge-offs |
|
116 |
|
|
211 |
|
|
193 |
|
|
168 |
|
|
144 |
|
Efficiency ratio |
|
67.96 |
% |
|
65.36 |
% |
|
64.89 |
% |
|
65.10 |
% |
|
68.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.49 |
|
|
$ |
0.55 |
|
|
$ |
0.63 |
|
|
$ |
0.53 |
|
|
$ |
0.44 |
|
Diluted earnings per share |
|
0.49 |
|
|
0.55 |
|
|
0.63 |
|
|
0.53 |
|
|
0.43 |
|
Dividend declared per share |
|
0.32 |
|
|
0.32 |
|
|
0.32 |
|
|
0.32 |
|
|
0.32 |
|
Book value |
|
23.25 |
|
|
23.27 |
|
|
23.05 |
|
|
22.66 |
|
|
22.23 |
|
Common stock price: |
|
|
|
|
|
|
|
|
|
|
High |
|
27.78 |
|
|
27.30 |
|
|
22.83 |
|
|
27.75 |
|
|
35.36 |
|
Low |
|
20.55 |
|
|
19.61 |
|
|
19.61 |
|
|
20.01 |
|
|
19.05 |
|
Close |
|
24.09 |
|
|
26.01 |
|
|
19.85 |
|
|
22.71 |
|
|
24.30 |
|
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
7,055 |
|
|
7,050 |
|
|
7,045 |
|
|
7,042 |
|
|
7,041 |
|
Fully Diluted |
|
7,055 |
|
|
7,050 |
|
|
7,045 |
|
|
7,042 |
|
|
7,103 |
|
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
Issued |
|
7,537 |
|
|
7,533 |
|
|
7,528 |
|
|
7,523 |
|
|
7,521 |
|
Treasury |
|
480 |
|
|
480 |
|
|
480 |
|
|
480 |
|
|
480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share Data) |
|
Quarter Ended |
|
|
3/31/2021 |
|
12/31/2020 |
|
9/30/2020 |
|
6/30/2020 |
|
3/31/2020 |
Financial Condition
Data: |
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,896,192 |
|
|
$ |
1,834,643 |
|
|
$ |
1,840,779 |
|
|
$ |
1,838,364 |
|
|
$ |
1,688,508 |
|
Loans, net |
|
1,321,697 |
|
|
1,330,524 |
|
|
1,335,711 |
|
|
1,336,370 |
|
|
1,336,900 |
|
Goodwill |
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
|
17,104 |
|
Intangibles |
|
618 |
|
|
671 |
|
|
724 |
|
|
777 |
|
|
836 |
|
Total deposits |
|
1,564,364 |
|
|
1,494,443 |
|
|
1,491,810 |
|
|
1,474,305 |
|
|
1,326,734 |
|
Noninterest-bearing |
|
478,916 |
|
|
449,357 |
|
|
434,248 |
|
|
418,324 |
|
|
332,759 |
|
Savings |
|
224,890 |
|
|
209,924 |
|
|
202,781 |
|
|
195,964 |
|
|
183,929 |
|
NOW |
|
290,355 |
|
|
287,775 |
|
|
268,463 |
|
|
268,348 |
|
|
229,919 |
|
Money Market |
|
324,207 |
|
|
283,742 |
|
|
274,480 |
|
|
247,753 |
|
|
204,832 |
|
Time Deposits |
|
245,996 |
|
|
263,645 |
|
|
311,838 |
|
|
343,915 |
|
|
375,295 |
|
Total interest-bearing deposits |
|
1,085,448 |
|
|
1,045,086 |
|
|
1,057,562 |
|
|
1,055,980 |
|
|
993,975 |
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits* |
|
1,318,368 |
|
|
1,230,798 |
|
|
1,179,972 |
|
|
1,130,389 |
|
|
951,439 |
|
Shareholders’ equity |
|
164,059 |
|
|
164,142 |
|
|
162,422 |
|
|
159,578 |
|
|
156,562 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
9,272 |
|
|
$ |
10,334 |
|
|
$ |
10,553 |
|
|
$ |
11,097 |
|
|
$ |
11,300 |
|
Non-performing loans to total assets |
|
0.49 |
% |
|
0.56 |
% |
|
0.57 |
% |
|
0.60 |
% |
|
0.67 |
% |
Allowance for loan losses |
|
14,202 |
|
|
13,803 |
|
|
13,429 |
|
|
12,977 |
|
|
12,500 |
|
Allowance for loan losses to total loans |
|
1.06 |
% |
|
1.03 |
% |
|
1.00 |
% |
|
0.96 |
% |
|
0.93 |
% |
Allowance for loan losses to non-performing loans |
|
153.17 |
% |
|
133.57 |
% |
|
127.25 |
% |
|
116.94 |
% |
|
110.62 |
% |
Non-performing loans to total loans |
|
0.69 |
% |
|
0.77 |
% |
|
0.78 |
% |
|
0.82 |
% |
|
0.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity to total assets |
|
8.65 |
% |
|
8.95 |
% |
|
8.82 |
% |
|
8.68 |
% |
|
9.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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) |
|
2021 |
|
2020 |
GAAP net income |
|
$ |
3,441 |
|
|
$ |
3,073 |
|
Less: net securities gains,
net of tax |
|
|
94 |
|
|
|
22 |
|
Non-GAAP core earnings |
|
$ |
3,347 |
|
|
$ |
3,051 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Return on average assets
(ROA) |
|
0.75 |
% |
|
0.74 |
% |
Less: net securities gains,
net of tax |
|
0.02 |
% |
|
0.01 |
% |
Non-GAAP core ROA |
|
0.73 |
% |
|
0.73 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Return on average equity
(ROE) |
|
8.59 |
% |
|
7.83 |
% |
Less: net securities gains,
net of tax |
|
0.24 |
% |
|
0.06 |
% |
Non-GAAP core ROE |
|
8.35 |
% |
|
7.77 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Basic earnings per share (EPS) |
|
$ |
0.49 |
|
|
$ |
0.44 |
|
Less: net securities gains,
net of tax |
|
0.02 |
|
|
— |
|
Non-GAAP basic core EPS |
|
$ |
0.47 |
|
|
$ |
0.44 |
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Diluted EPS |
|
$ |
0.49 |
|
|
$ |
0.43 |
|
Less: net securities gains,
net of tax |
|
0.02 |
|
|
— |
|
Non-GAAP diluted core EPS |
|
$ |
0.47 |
|
|
$ |
0.43 |
|
|
|
|
|
|
|
|
|
|
COVID-19
Loan Deferrals as of March 31, 2021 |
|
(In Thousands) |
|
Amount |
Commercial, financial, and agricultural |
|
$ |
1,710 |
|
Real estate mortgage: |
|
|
Residential |
|
2,177 |
|
Commercial |
|
8,307 |
|
Consumer automobile loans |
|
96 |
|
Other consumer installment
loans |
|
55 |
|
Total loan deferrals |
|
$ |
12,345 |
|
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