Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc. achieved net
income of $3.4 million for the three months ended March 31, 2022,
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, 2022 was $3.4 million
compared to $3.4 million for the same period of 2021. Results for
the three months ended March 31, 2022 compared to 2021 were
impacted by an increase in after-tax securities losses of $142,000
(from a gain of $94,000 to a loss of $48,000) for the three month
period. In addition, an after-tax loss of $201,000 related to a
branch closure negatively impacted the three months ended March 31,
2022.
- The provision for loan losses
decreased $365,000 for the three months ended March 31, 2022 to
$150,000 compared to $515,000 for the 2021 period. The provision
for loan losses was elevated in 2021 due primarily to the
uncertainty caused by the COVID-19 pandemic.
- Basic and diluted earnings per
share for the three months ended March 31, 2022 were $0.49. Basic
and diluted earnings per share for the three months ended March 31,
2021 were $0.49.
- Annualized return on average assets
was 0.72% for three months ended March 31, 2022, compared to 0.75%
for the corresponding period of 2021.
- Annualized return on average equity
was 8.17% for the three months ended March 31, 2022, compared to
8.59% for the corresponding period of 2021.
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 $3.5 million for the three months ended March 31,
2022 compared to $3.3 million for the same period of 2021. Core
earnings per share for the three months ended March 31, 2022
were $0.48 basic and diluted, compared to $0.47 basic and diluted
core earnings per share for the same period of 2021. Core return on
average assets and core return on average equity were 0.73% and
8.28% for the three months ended March 31, 2022, compared to 0.73%
and 8.35% for the corresponding period of 2021. Core earnings for
the three months ended March 31, 2022 were impacted negatively by
an after-tax loss of $201,000 relating to a branch closure. 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, 2022 was 2.93%, compared to 2.88% for the
corresponding period of 2021. The increase in the net interest
margin for the three month period was driven by a decline in the
rate paid on interest-bearing deposits of 35 basis points ("bps")
as rates paid decreased throughout 2021 and through the first three
months of 2022. Leading the decline in the rate paid on
interest-bearing deposits was a 94 bps decline in the rate paid on
time deposits as time deposits issued prior to the COVID-19
pandemic matured. Offsetting the decrease in rates paid on the
interest bearing liabilities was a decrease in the yield of the
loan portfolio of 26 bps coupled with the yield on the investment
portfolio declining 32 bps as legacy earning assets were paid down
or matured.
Assets
Total assets increased $20.6 million to $1.9
billion at March 31, 2022 compared to March 31,
2021. Cash and cash equivalents decreased $58.9 million as
interest-bearing accounts in other financial institutions decreased
$106.1 million which was partially offset by an increase of $50.0
million in federal funds sold. Net loans increased $70.2 million to
$1.4 billion at March 31, 2022 compared to March 31,
2021, as the economy continued recovering from the various negative
economic impact caused by the COVID-19 pandemic and an emphasis was
placed on commercial loan growth. The investment portfolio
increased $7.5 million from March 31, 2021 to March 31,
2022 as a portion of the excess cash liquidity was invested
primarily into short-term municipal bonds with a maturity of five
years or less.
Non-performing Loans
The ratio of non-performing loans to total loans
ratio decreased to 0.38% at March 31, 2022 from 0.69% at
March 31, 2021 as non-performing loans have decreased to $5.3
million at March 31, 2022 from $9.3 million at March 31,
2021. 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 $303,000 for the three months ended March 31,
2022 impacted the allowance for loan losses, which was 1.00% of
total loans at March 31, 2022 compared to 1.06% at March 31,
2021.
Deposits
Deposits increased $48.0 million to $1.6 billion
at March 31, 2022 compared to March 31, 2021.
Noninterest-bearing deposits increased $35.2 million to $514.1
million at March 31, 2022 compared to March 31, 2021.
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. The increased level of deposits
has allowed for a $28.2 million decrease in long-term
borrowings.
Shareholders’ Equity
Shareholders’ equity increased $4.4 million to
$168.4 million at March 31, 2022 compared to March 31,
2021. Accumulated other comprehensive loss of $6.5 million at
March 31, 2022 increased from a loss of $2.5 million at March 31,
2021 as a result of a increase of $6.2 million in the net
unrealized losses on available for sale securities and a change in
the defined benefit plan of $2.1 million. The current level of
shareholders’ equity equates to a book value per share of $23.81 at
March 31, 2022 compared to $23.25 at March 31, 2021, and
an equity to asset ratio of 8.79% at March 31, 2022 and 8.65%
at March 31, 2021. Dividends declared for the three
months ended March 31, 2022 and 2021 were $0.32 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, Union, and Blair Counties, and Luzerne Bank, which
operates eight branch offices providing financial services in
Luzerne County, and United Insurance Solutions, LLC, which offers
insurance products. Investment and insurance products are
offered through Jersey Shore State 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 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, 2021.
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 |
|
|
|
|
|
|
PENNS WOODS
BANCORP, INC.CONSOLIDATED BALANCE
SHEET(UNAUDITED)
|
|
March 31, |
(In Thousands, Except Share Data) |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
ASSETS: |
|
|
|
|
|
|
Noninterest-bearing
balances |
|
$ |
25,717 |
|
|
$ |
28,539 |
|
|
(9.89) |
% |
Interest-bearing balances in
other financial
institutions |
|
|
143,086 |
|
|
|
249,149 |
|
|
(42.57) |
% |
Federal funds
sold |
|
|
50,000 |
|
|
|
— |
|
|
n/a |
Total cash and cash
equivalents |
|
|
218,803 |
|
|
|
277,688 |
|
|
(21.21) |
% |
|
|
|
|
|
|
|
|
Investment debt securities,
available for sale, at fair
value |
|
|
175,674 |
|
|
|
166,895 |
|
|
5.26 |
% |
Investment equity securities,
at fair value |
|
|
1,193 |
|
|
|
1,265 |
|
|
(5.69) |
% |
Investment securities,
trading |
|
|
36 |
|
|
|
44 |
|
|
(18.18) |
% |
Restricted investment in bank
stock, at fair value
|
|
|
13,795 |
|
|
|
15,032 |
|
|
(8.23) |
% |
Loans held for
sale |
|
|
1,360 |
|
|
|
2,568 |
|
|
(47.04) |
% |
Loans |
|
|
1,405,966 |
|
|
|
1,335,899 |
|
|
5.24 |
% |
Allowance for loan
losses |
|
|
(14,023 |
) |
|
|
(14,202 |
) |
|
(1.26) |
% |
Loans, net |
|
|
1,391,943 |
|
|
|
1,321,697 |
|
|
5.31 |
% |
Premises and equipment,
net |
|
|
33,259 |
|
|
|
34,910 |
|
|
(4.73) |
% |
Accrued interest
receivable |
|
|
8,129 |
|
|
|
8,583 |
|
|
(5.29) |
% |
Bank-owned life
insurance |
|
|
33,953 |
|
|
|
33,839 |
|
|
0.34 |
% |
Investment in limited
partnerships |
|
|
4,600 |
|
|
|
4,655 |
|
|
(1.18) |
% |
Goodwill |
|
|
17,104 |
|
|
|
17,104 |
|
|
— |
% |
Intangibles |
|
|
437 |
|
|
|
618 |
|
|
(29.29) |
% |
Operating lease right of use
asset |
|
|
2,795 |
|
|
|
3,088 |
|
|
(9.49) |
% |
Deferred tax
asset |
|
|
4,569 |
|
|
|
3,717 |
|
|
22.92 |
% |
Other
assets |
|
|
9,159 |
|
|
|
4,489 |
|
|
104.03 |
% |
TOTAL
ASSETS |
|
$ |
1,916,809 |
|
|
$ |
1,896,192 |
|
|
1.09 |
% |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Interest-bearing
deposits |
|
$ |
1,098,265 |
|
|
$ |
1,085,448 |
|
|
1.18 |
% |
Noninterest-bearing
deposits |
|
|
514,130 |
|
|
|
478,916 |
|
|
7.35 |
% |
Total deposits |
|
|
1,612,395 |
|
|
|
1,564,364 |
|
|
3.07 |
% |
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
6,634 |
|
|
|
6,650 |
|
|
(0.24) |
% |
Long-term
borrowings |
|
|
112,918 |
|
|
|
141,094 |
|
|
(19.97) |
% |
Accrued interest
payable |
|
|
471 |
|
|
|
988 |
|
|
(52.33) |
% |
Operating lease
liability |
|
|
2,847 |
|
|
|
3,130 |
|
|
(9.04) |
% |
Other
liabilities |
|
|
13,117 |
|
|
|
15,903 |
|
|
(17.52) |
% |
TOTAL
LIABILITIES |
|
|
1,748,382 |
|
|
|
1,732,129 |
|
|
0.94 |
% |
|
|
|
|
|
|
|
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; 7,554,567 and 7,537,242 shares
issued; 7,074,342 and 7,057,017 shares
outstanding |
|
|
41,969 |
|
|
|
41,873 |
|
|
0.23 |
% |
Additional paid-in
capital |
|
|
54,191 |
|
|
|
52,818 |
|
|
2.60 |
% |
Retained
earnings |
|
|
90,928 |
|
|
|
83,948 |
|
|
8.31 |
% |
Accumulated other
comprehensive (loss) gain: |
|
|
|
|
|
|
Net unrealized (loss) gain on available for sale
securities |
|
|
(3,074 |
) |
|
|
3,095 |
|
|
(199.32) |
% |
Defined benefit
plan |
|
|
(3,472 |
) |
|
|
(5,560 |
) |
|
37.55 |
% |
Treasury stock at cost,
480,225 |
|
|
(12,115 |
) |
|
|
(12,115 |
) |
|
— |
% |
TOTAL PENNS WOODS BANCORP,
INC. SHAREHOLDERS'
EQUITY |
|
|
168,427 |
|
|
|
164,059 |
|
|
2.66 |
% |
Non-controlling
interest |
|
|
— |
|
|
|
4 |
|
|
(100.00) |
% |
TOTAL SHAREHOLDERS'
EQUITY |
|
|
168,427 |
|
|
|
164,063 |
|
|
2.66 |
% |
TOTAL LIABILITIES AND
SHAREHOLDERS’
EQUITY |
|
$ |
1,916,809 |
|
|
$ |
1,896,192 |
|
|
1.09 |
% |
|
PENNS WOODS BANCORP,
INC.CONSOLIDATED STATEMENT OF
INCOME(UNAUDITED)
|
|
Three Months Ended March 31, |
(In Thousands, Except Per Share Data) |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
Loans including
fees |
|
$ |
13,038 |
|
|
$ |
13,345 |
|
|
(2.30) |
% |
Investment securities: |
|
|
|
|
|
|
|
Taxable |
|
|
737 |
|
|
|
819 |
|
|
(10.01) |
% |
Tax-exempt |
|
|
164 |
|
|
|
171 |
|
|
(4.09) |
% |
Dividend and other interest
income |
|
|
336 |
|
|
|
260 |
|
|
29.23 |
% |
TOTAL INTEREST AND DIVIDEND
INCOME |
|
|
14,275 |
|
|
|
14,595 |
|
|
(2.19) |
% |
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
Deposits |
|
|
788 |
|
|
|
1,684 |
|
|
(53.21) |
% |
Short-term
borrowings |
|
|
1 |
|
|
|
2 |
|
|
(50.00) |
% |
Long-term
borrowings |
|
|
633 |
|
|
|
839 |
|
|
(24.55) |
% |
TOTAL INTEREST
EXPENSE |
|
|
1,422 |
|
|
|
2,525 |
|
|
(43.68) |
% |
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
|
12,853 |
|
|
|
12,070 |
|
|
6.49 |
% |
|
|
|
|
|
|
|
PROVISION FOR LOAN
LOSSES |
|
|
150 |
|
|
|
515 |
|
|
(70.87) |
% |
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER
PROVISION FOR LOAN
LOSSES |
|
|
12,703 |
|
|
|
11,555 |
|
|
9.94 |
% |
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Service
charges |
|
|
495 |
|
|
|
383 |
|
|
29.24 |
% |
Debt securities (losses)
gains, available for
sale |
|
|
(2 |
) |
|
|
138 |
|
|
(101.45) |
% |
Equity securities
losses |
|
|
(58 |
) |
|
|
(23 |
) |
|
(152.17) |
% |
Securities (losses) gains,
trading |
|
|
(1 |
) |
|
|
4 |
|
|
(125.00) |
% |
Bank-owned life
insurance |
|
|
170 |
|
|
|
173 |
|
|
(1.73) |
% |
Gain on sale of
loans |
|
|
345 |
|
|
|
908 |
|
|
(62.00) |
% |
Insurance
commissions |
|
|
170 |
|
|
|
157 |
|
|
8.28 |
% |
Brokerage
commissions |
|
|
200 |
|
|
|
219 |
|
|
(8.68) |
% |
Loan broker
income |
|
|
541 |
|
|
|
181 |
|
|
198.90 |
% |
Debit card
income |
|
|
345 |
|
|
|
380 |
|
|
(9.21) |
% |
Other |
|
|
207 |
|
|
|
94 |
|
|
120.21 |
% |
TOTAL NON-INTEREST
INCOME |
|
|
2,412 |
|
|
|
2,614 |
|
|
(7.73) |
% |
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
6,264 |
|
|
|
5,598 |
|
|
11.90 |
% |
Occupancy |
|
|
910 |
|
|
|
976 |
|
|
(6.76) |
% |
Furniture and
equipment |
|
|
892 |
|
|
|
809 |
|
|
10.26 |
% |
Software
amortization |
|
|
253 |
|
|
|
198 |
|
|
27.78 |
% |
Pennsylvania shares
tax |
|
|
389 |
|
|
|
352 |
|
|
10.51 |
% |
Professional
fees |
|
|
538 |
|
|
|
583 |
|
|
(7.72) |
% |
Federal Deposit Insurance
Corporation deposit
insurance |
|
|
202 |
|
|
|
221 |
|
|
(8.60) |
% |
Marketing |
|
|
64 |
|
|
|
63 |
|
|
1.59 |
% |
Intangible
amortization |
|
|
44 |
|
|
|
53 |
|
|
(16.98) |
% |
Other |
|
|
1,451 |
|
|
|
1,098 |
|
|
32.15 |
% |
TOTAL NON-INTEREST
EXPENSE |
|
|
11,007 |
|
|
|
9,951 |
|
|
10.61 |
% |
INCOME BEFORE INCOME TAX
PROVISION |
|
|
4,108 |
|
|
|
4,218 |
|
|
(2.61) |
% |
INCOME TAX
PROVISION |
|
|
676 |
|
|
|
771 |
|
|
(12.32) |
% |
NET
INCOME |
|
$ |
3,432 |
|
|
$ |
3,447 |
|
|
(0.44) |
% |
Earnings attributable to
noncontrolling
interest |
|
|
— |
|
|
|
6 |
|
|
(100.00) |
% |
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS' |
|
$ |
3,432 |
|
|
$ |
3,441 |
|
|
(0.26) |
% |
EARNINGS PER SHARE - BASIC
|
|
$ |
0.49 |
|
|
$ |
0.49 |
|
|
— |
% |
EARNINGS PER SHARE -
DILUTED |
|
$ |
0.49 |
|
|
$ |
0.49 |
|
|
— |
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING -
BASIC |
|
|
7,072,575 |
|
|
|
7,055,116 |
|
|
0.25 |
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING -
DILUTED |
|
|
7,072,575 |
|
|
|
7,055,116 |
|
|
0.25 |
% |
|
PENNS WOODS BANCORP,
INC.AVERAGE BALANCES AND INTEREST
RATES (UNAUDITED)
|
|
Three Months Ended |
|
|
March 31, 2022 |
|
March 31, 2021 |
(Dollars in Thousands) |
|
AverageBalance |
|
Interest |
|
AverageRate |
|
AverageBalance |
|
Interest |
|
AverageRate |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt
loans |
|
$ |
47,974 |
|
$ |
308 |
|
2.60 |
% |
|
$ |
45,534 |
|
$ |
349 |
|
3.11 |
% |
All other
loans |
|
|
1,351,414 |
|
|
12,795 |
|
3.84 |
% |
|
|
1,293,395 |
|
|
13,069 |
|
4.10 |
% |
Total
loans |
|
|
1,399,388 |
|
|
13,103 |
|
3.80 |
% |
|
|
1,338,929 |
|
|
13,418 |
|
4.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds
sold |
|
|
50,000 |
|
|
93 |
|
0.75 |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
securities |
|
|
144,438 |
|
|
920 |
|
2.58 |
% |
|
|
145,047 |
|
|
1,033 |
|
2.89 |
% |
Tax-exempt
securities |
|
|
40,981 |
|
|
208 |
|
2.06 |
% |
|
|
36,369 |
|
|
216 |
|
2.41 |
% |
Total
securities |
|
|
185,419 |
|
|
1,128 |
|
2.47 |
% |
|
|
181,416 |
|
|
1,249 |
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
|
157,541 |
|
|
60 |
|
0.15 |
% |
|
|
195,995 |
|
|
46 |
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets |
|
|
1,792,348 |
|
|
14,384 |
|
3.25 |
% |
|
|
1,716,340 |
|
|
14,713 |
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets |
|
|
127,421 |
|
|
|
|
|
|
124,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
1,919,769 |
|
|
|
|
|
$ |
1,840,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
240,953 |
|
|
22 |
|
0.04 |
% |
|
$ |
214,636 |
|
|
44 |
|
0.08 |
% |
Super Now
deposits |
|
|
370,895 |
|
|
195 |
|
0.21 |
% |
|
|
289,236 |
|
|
267 |
|
0.37 |
% |
Money market
deposits |
|
|
298,820 |
|
|
186 |
|
0.25 |
% |
|
|
306,000 |
|
|
267 |
|
0.35 |
% |
Time
deposits |
|
|
190,819 |
|
|
385 |
|
0.82 |
% |
|
|
254,460 |
|
|
1,106 |
|
1.76 |
% |
Total interest-bearing
deposits |
|
|
1,101,487 |
|
|
788 |
|
0.29 |
% |
|
|
1,064,332 |
|
|
1,684 |
|
0.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
5,194 |
|
|
1 |
|
0.08 |
% |
|
|
5,680 |
|
|
2 |
|
0.14 |
% |
Long-term
borrowings |
|
|
115,267 |
|
|
633 |
|
2.23 |
% |
|
|
141,483 |
|
|
839 |
|
2.40 |
% |
Total
borrowings |
|
|
120,461 |
|
|
634 |
|
2.13 |
% |
|
|
147,163 |
|
|
841 |
|
2.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities |
|
|
1,221,948 |
|
|
1,422 |
|
0.47 |
% |
|
|
1,211,495 |
|
|
2,525 |
|
0.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits |
|
|
506,348 |
|
|
|
|
|
|
445,759 |
|
|
|
|
Other
liabilities |
|
|
23,357 |
|
|
|
|
|
|
22,872 |
|
|
|
|
Shareholders’
equity |
|
|
168,116 |
|
|
|
|
|
|
160,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’
EQUITY |
|
$ |
1,919,769 |
|
|
|
|
|
$ |
1,840,414 |
|
|
|
|
Interest rate
spread |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.63 |
% |
Net interest
income/margin |
|
|
|
$ |
12,962 |
|
2.93 |
% |
|
|
|
$ |
12,188 |
|
2.88 |
% |
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
2021 |
Total interest
income |
|
$ |
14,275 |
|
$ |
14,595 |
Total interest
expense |
|
|
1,422 |
|
|
2,525 |
Net interest income
(GAAP) |
|
|
12,853 |
|
|
12,070 |
Tax equivalent
adjustment |
|
|
109 |
|
|
118 |
Net interest income (fully
taxable equivalent)
(non-GAAP) |
|
$ |
12,962 |
|
$ |
12,188 |
(Dollars in Thousands, Except Per Share Data,
Unaudited) |
|
Quarter Ended |
|
|
3/31/2022 |
|
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
Operating
Data |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
3,432 |
|
|
$ |
4,879 |
|
|
$ |
4,125 |
|
|
$ |
3,588 |
|
|
$ |
3,441 |
|
Net interest
income |
|
|
12,853 |
|
|
|
12,921 |
|
|
|
12,632 |
|
|
|
12,095 |
|
|
|
12,070 |
|
Provision for loan
losses |
|
|
150 |
|
|
|
(300 |
) |
|
|
75 |
|
|
|
350 |
|
|
|
515 |
|
Net security (losses)
gains |
|
|
(61 |
) |
|
|
360 |
|
|
|
40 |
|
|
|
140 |
|
|
|
119 |
|
Non-interest income, excluding net security
gains |
|
|
2,473 |
|
|
|
2,835 |
|
|
|
2,911 |
|
|
|
2,769 |
|
|
|
2,495 |
|
Non-interest
expense |
|
|
11,007 |
|
|
|
10,259 |
|
|
|
10,447 |
|
|
|
10,248 |
|
|
|
9,951 |
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Statistics |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
2.93 |
% |
|
|
2.90 |
% |
|
|
2.85 |
% |
|
|
2.78 |
% |
|
|
2.88 |
% |
Annualized return on average
assets |
|
|
0.72 |
% |
|
|
1.02 |
% |
|
|
0.86 |
% |
|
|
0.76 |
% |
|
|
0.75 |
% |
Annualized return on average
equity |
|
|
8.17 |
% |
|
|
11.59 |
% |
|
|
9.85 |
% |
|
|
8.70 |
% |
|
|
8.59 |
% |
Annualized net loan charge-offs (recoveries) to average
loans |
|
|
0.09 |
% |
|
|
0.02 |
% |
|
|
(0.01) |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
Net charge-offs
(recoveries) |
|
|
303 |
|
|
|
81 |
|
|
|
(44 |
) |
|
|
114 |
|
|
|
116 |
|
Efficiency
ratio |
|
|
71.53 |
% |
|
|
64.83 |
% |
|
|
66.93 |
% |
|
|
68.61 |
% |
|
|
67.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.49 |
|
|
$ |
0.69 |
|
|
$ |
0.58 |
|
|
$ |
0.51 |
|
|
$ |
0.49 |
|
Diluted earnings per
share |
|
|
0.49 |
|
|
|
0.69 |
|
|
|
0.58 |
|
|
|
0.51 |
|
|
|
0.49 |
|
Dividend declared per
share |
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.32 |
|
Book value |
|
|
23.81 |
|
|
|
24.37 |
|
|
|
23.84 |
|
|
|
23.63 |
|
|
|
23.25 |
|
Common stock price: |
|
|
|
|
|
|
|
|
|
|
High |
|
|
24.67 |
|
|
|
24.65 |
|
|
|
24.42 |
|
|
|
26.51 |
|
|
|
27.78 |
|
Low |
|
|
23.64 |
|
|
|
23.50 |
|
|
|
22.78 |
|
|
|
23.03 |
|
|
|
20.55 |
|
Close |
|
|
24.43 |
|
|
|
23.65 |
|
|
|
23.92 |
|
|
|
23.82 |
|
|
|
24.09 |
|
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,073 |
|
|
|
7,068 |
|
|
|
7,064 |
|
|
|
7,060 |
|
|
|
7,055 |
|
Fully Diluted |
|
|
7,073 |
|
|
|
7,068 |
|
|
|
7,064 |
|
|
|
7,060 |
|
|
|
7,055 |
|
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
Issued |
|
|
7,555 |
|
|
|
7,550 |
|
|
|
7,546 |
|
|
|
7,542 |
|
|
|
7,537 |
|
Treasury |
|
|
480 |
|
|
|
480 |
|
|
|
480 |
|
|
|
480 |
|
|
|
480 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands, Except Per Share Data,
Unaudited) |
|
Quarter Ended |
|
|
3/31/2022 |
|
12/31/2021 |
|
9/30/2021 |
|
6/30/2021 |
|
3/31/2021 |
Financial Condition
Data: |
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,916,809 |
|
|
$ |
1,940,809 |
|
|
$ |
1,910,791 |
|
|
$ |
1,894,870 |
|
|
$ |
1,896,192 |
|
Loans, net |
|
|
1,391,943 |
|
|
|
1,377,971 |
|
|
|
1,332,668 |
|
|
|
1,323,509 |
|
|
|
1,321,697 |
|
Goodwill |
|
|
17,104 |
|
|
|
17,104 |
|
|
|
17,104 |
|
|
|
17,104 |
|
|
|
17,104 |
|
Intangibles |
|
|
437 |
|
|
|
480 |
|
|
|
524 |
|
|
|
568 |
|
|
|
618 |
|
Total deposits |
|
|
1,612,395 |
|
|
|
1,621,315 |
|
|
|
1,593,019 |
|
|
|
1,563,696 |
|
|
|
1,564,364 |
|
Noninterest-bearing |
|
|
514,130 |
|
|
|
494,360 |
|
|
|
481,875 |
|
|
|
477,344 |
|
|
|
478,916 |
|
Savings |
|
|
236,312 |
|
|
|
236,312 |
|
|
|
231,189 |
|
|
|
226,573 |
|
|
|
224,890 |
|
NOW |
|
|
245,661 |
|
|
|
366,399 |
|
|
|
340,441 |
|
|
|
296,450 |
|
|
|
290,355 |
|
Money Market |
|
|
299,166 |
|
|
|
318,877 |
|
|
|
305,156 |
|
|
|
301,405 |
|
|
|
324,207 |
|
Time Deposits |
|
|
173,600 |
|
|
|
205,367 |
|
|
|
234,358 |
|
|
|
261,924 |
|
|
|
245,996 |
|
Total interest-bearing
deposits |
|
|
1,098,265 |
|
|
|
1,126,955 |
|
|
|
1,111,144 |
|
|
|
1,086,352 |
|
|
|
1,085,448 |
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits* |
|
|
1,438,795 |
|
|
|
1,415,948 |
|
|
|
1,358,661 |
|
|
|
1,301,772 |
|
|
|
1,318,368 |
|
Shareholders’
equity |
|
|
168,427 |
|
|
|
172,274 |
|
|
|
168,478 |
|
|
|
166,830 |
|
|
|
164,059 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing
loans |
|
$ |
5,281 |
|
|
$ |
6,250 |
|
|
$ |
7,763 |
|
|
$ |
7,931 |
|
|
$ |
9,272 |
|
Non-performing loans to total
assets |
|
|
0.28 |
% |
|
|
0.32 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
|
|
0.49 |
% |
Allowance for loan
losses |
|
|
14,023 |
|
|
|
14,176 |
|
|
|
14,557 |
|
|
|
14,438 |
|
|
|
14,202 |
|
Allowance for loan losses to total
loans |
|
|
1.00 |
% |
|
|
1.02 |
% |
|
|
1.08 |
% |
|
|
1.08 |
% |
|
|
1.06 |
% |
Allowance for loan losses to non-performing
loans |
|
|
265.54 |
% |
|
|
226.82 |
% |
|
|
187.52 |
% |
|
|
182.05 |
% |
|
|
153.17 |
% |
Non-performing loans to total
loans |
|
|
0.38 |
% |
|
|
0.45 |
% |
|
|
0.58 |
% |
|
|
0.59 |
% |
|
|
0.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity to total
assets |
|
|
8.79 |
% |
|
|
8.88 |
% |
|
|
8.82 |
% |
|
|
8.80 |
% |
|
|
8.65 |
% |
* Core deposits are defined as total deposits less time
deposits
Reconciliation of GAAP and Non-GAAP
Financial Measures(UNAUDITED)
|
|
Three Months Ended March 31, |
(Dollars in Thousands, Except Per Share Data) |
|
|
2022 |
|
|
|
2021 |
|
GAAP net
income |
|
$ |
3,432 |
|
|
$ |
3,441 |
|
Less: net securities (losses)
gains, net of
tax |
|
|
(48 |
) |
|
|
94 |
|
Non-GAAP core
earnings |
|
$ |
3,480 |
|
|
$ |
3,347 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Return on average assets
(ROA) |
|
|
0.72 |
% |
|
|
0.75 |
% |
Less: net securities (losses)
gains, net of
tax |
|
|
(0.01) |
% |
|
|
0.02 |
% |
Non-GAAP core
ROA |
|
|
0.73 |
% |
|
|
0.73 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Return on average equity
(ROE) |
|
|
8.17 |
% |
|
|
8.59 |
% |
Less: net securities (losses)
gains, net of
tax |
|
|
(0.11) |
% |
|
|
0.24 |
% |
Non-GAAP core
ROE |
|
|
8.28 |
% |
|
|
8.35 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Basic earnings per share
(EPS) |
|
$ |
0.49 |
|
|
$ |
0.49 |
|
Less: net securities (losses)
gains, net of
tax |
|
|
0.01 |
|
|
|
0.02 |
|
Non-GAAP basic core
EPS |
|
$ |
0.48 |
|
|
$ |
0.47 |
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Diluted
EPS |
|
$ |
0.49 |
|
|
$ |
0.49 |
|
Less: net securities (losses)
gains, net of
tax |
|
|
0.01 |
|
|
|
0.02 |
|
Non-GAAP diluted core
EPS |
|
$ |
0.48 |
|
|
$ |
0.47 |
|
Penns Woods Bancorp (NASDAQ:PWOD)
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