Penns Woods Bancorp, Inc. (NASDAQ: PWOD)
Penns Woods Bancorp, Inc. achieved net
income of $4.7 million for the three months ended March 31, 2023,
resulting in basic earnings per share of $0.66 and diluted earnings
per share of $0.64.
Highlights
- Net income, as reported under GAAP,
for the three months ended March 31, 2023 was $4.7 million,
compared to $3.4 million for the same period of 2022. Results for
the three months ended March 31, 2023 compared to 2022 were
impacted by a decrease in after-tax securities losses of $16,000
(from a loss of $48,000 to a loss of $32,000) for the period. In
addition, bank-owned life insurance income increased due to a gain
on death benefit of $380,000 during the three months ended March
31, 2023, while an after-tax loss of $201,000 related to a branch
closure negatively impacted the three months ended March 31,
2022.
- The provision for credit losses
decreased $79,000 for the three months ended March 31, 2023 to a
provision of $71,000 compared to a provision of $150,000 for the
2022 period. The decrease in the provision for credit losses was
primarily due to improving loan portfolio credit metrics and a
minimal level of net loan charge-offs.
- Basic earnings per share for the
three months ended March 31, 2023 was $0.66 and diluted earnings
per share was $0.64. Basic and diluted earnings per share for the
three months ended March 31, 2022 were $0.49.
- Annualized return on average assets
was 0.92% for three months ended March 31, 2023, compared to 0.72%
for the corresponding period of 2022.
- Annualized return on average equity
was 11.12% for the three months ended March 31, 2023, compared to
8.17% for the corresponding period of 2022.
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 $4.7 million for the three months ended March 31,
2023 compared to $3.5 million for the same period of 2022. Core
earnings per share for the three months ended March 31, 2023
was $0.66 basic and $0.64 diluted, compared to $0.50 basic and
diluted core earnings per share for the same period of 2022.
Annualized core return on average assets and core return on average
equity were 0.93% and 11.19% for the three months ended March 31,
2023, compared to 0.73% and 8.28% for the corresponding period of
2022. 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, 2023 was 3.10%, compared to 2.93% for the
corresponding period of 2022. The increase in the net interest
margin for the three month period was driven by an increase in
earning asset yield of 105 basis points ("bps") as the yield on
earning assets increased throughout 2022 and during 2023 due to the
rate increases enacted by the Federal Open Market Committee
("FOMC"). The three month period ended March 31, 2023 was impacted
by an increase of 93 bps in the yield earned on the securities
portfolio as legacy securities matured with the funds reinvested at
higher rates. The FOMC rate increases during 2022 and 2023
contributed to the rate paid on interest-bearing deposits
increasing 97 bps for the three months ended March 31, 2023
compared to the corresponding period of 2022. Short-term borrowings
increased in volume and rate paid as this funding source was
utilized to provide funding for the growth in the loan portfolio
resulting in an increase of $1.4 million in expense for the three
months ended March 31, 2023 compared to the same period of
2022.
Assets
Total assets increased to $2.1 billion at
March 31, 2023, an increase of $148.3 million compared to
March 31, 2022. Cash and cash equivalents decreased $177.2
million as interest-bearing accounts in other financial
institutions decreased $133.1 million and fed funds sold decreased
$50.0 million as excess liquidity was primarily utilized to fund
the growth in the loan portfolio. Net loans increased $296.3
million to $1.7 billion at March 31, 2023 compared to
March 31, 2022, as an emphasis was placed on commercial loan
growth coupled with a significant increase in indirect auto
lending. The investment portfolio increased $26.3 million from
March 31, 2022 to March 31, 2023 as a portion of the
excess cash liquidity was invested primarily into short and
medium-term municipal bonds with a maturity of 10 years or
less.
Non-performing Loans
The ratio of non-performing loans to total loans
ratio decreased to 0.28% at March 31, 2023 from 0.38% at
March 31, 2022, as non-performing loans decreased to $4.8
million at March 31, 2023 from $5.3 million at March 31,
2022. 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 been classified as impaired
and have a specific allocation recorded within the allowance for
loan losses. Net loan charge-offs of $123,000 for the three
months ended March 31, 2023 impacted the allowance for loan losses,
which was 0.69% of total loans at March 31, 2023 compared to
1.00% at March 31, 2022 (prior to the adoption of CECL).
Deposits
Deposits increased $26.4 million to $1.6 billion
at March 31, 2023 compared to March 31, 2022.
Noninterest-bearing deposits decreased $11.8 million to $502.4
million at March 31, 2023 compared to March 31, 2022.
Core deposits declined slightly as deposits shifted from core
deposit accounts into time deposits as market rates increased due
to the FOMC rate increases and increased competition for deposits.
Core deposit gathering efforts remained focused on increasing the
utilization of electronic (internet and mobile) deposit banking
among our customers. Utilization of internet and mobile banking has
increased due to these efforts coupled with a change in consumer
behavior over the past several years. Interest-bearing deposits
increased $38.2 million from March 31, 2022 to March 31, 2023
primarily due to increased utilization of brokered deposits of
$28.9 million as this funding source was utilized to supplement the
funding of the loan portfolio growth, while reducing the need to
draw upon available borrowing lines. A campaign to attract time
deposits with a maturity of ten to twenty-four months was started
during the latter part of 2022 and has continued during the first
three months of 2023.
Shareholders’ Equity
Shareholders’ equity increased $5.5 million to
$174.0 million at March 31, 2023 compared to March 31,
2022. Accumulated other comprehensive loss of $12.0 million at
March 31, 2023 increased from a loss of $6.5 million at March 31,
2022 as a result of a $7.9 million net unrealized loss on available
for sale securities at March 31, 2023 compared to an unrealized
loss of $3.1 million at March 31, 2022 coupled with an increase in
loss of $638,000 in the defined benefit plan obligation. The
current level of shareholders’ equity equates to a book value per
share of $24.64 at March 31, 2023 compared to $23.81 at
March 31, 2022, and an equity to asset ratio of 8.42% at
March 31, 2023 and 8.79% at March 31,
2022. Dividends declared for the three months ended March 31,
2023 and 2022 were $0.32 per share.
Penns Woods Bancorp, Inc. is the parent
company of Jersey Shore State Bank, which operates sixteen 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, 2022.
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 and Per
Share Data) |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
ASSETS: |
|
|
|
|
|
|
|
Noninterest-bearing balances |
|
$ |
31,701 |
|
|
$ |
25,717 |
|
|
23.27 |
% |
Interest-bearing balances in
other financial institutions |
|
|
9,945 |
|
|
|
143,086 |
|
|
(93.05 |
)% |
Federal funds sold |
|
|
— |
|
|
|
50,000 |
|
|
(100.00 |
)% |
Total cash and cash equivalents |
|
|
41,646 |
|
|
|
218,803 |
|
|
(80.97 |
)% |
|
|
|
|
|
|
|
|
Investment debt securities,
available for sale, at fair value |
|
|
197,190 |
|
|
|
175,674 |
|
|
12.25 |
% |
Investment equity securities,
at fair value |
|
|
1,163 |
|
|
|
1,229 |
|
|
(5.37 |
)% |
Restricted investment in bank
stock, at fair value |
|
|
18,656 |
|
|
|
13,795 |
|
|
35.24 |
% |
Loans held for sale |
|
|
1,705 |
|
|
|
1,360 |
|
|
25.37 |
% |
Loans |
|
|
1,700,023 |
|
|
|
1,405,966 |
|
|
20.91 |
% |
Allowance for loan losses |
|
|
(11,734 |
) |
|
|
(14,023 |
) |
|
(16.32 |
)% |
Loans, net |
|
|
1,688,289 |
|
|
|
1,391,943 |
|
|
21.29 |
% |
Premises and equipment,
net |
|
|
31,602 |
|
|
|
33,259 |
|
|
(4.98 |
)% |
Accrued interest
receivable |
|
|
9,357 |
|
|
|
8,129 |
|
|
15.11 |
% |
Bank-owned life insurance |
|
|
33,359 |
|
|
|
33,953 |
|
|
(1.75 |
)% |
Investment in limited
partnerships |
|
|
8,529 |
|
|
|
4,600 |
|
|
85.41 |
% |
Goodwill |
|
|
16,450 |
|
|
|
17,104 |
|
|
(3.82 |
)% |
Intangibles |
|
|
292 |
|
|
|
437 |
|
|
(33.18 |
)% |
Operating lease right of use
asset |
|
|
2,635 |
|
|
|
2,795 |
|
|
(5.72 |
)% |
Deferred tax asset |
|
|
5,741 |
|
|
|
4,569 |
|
|
25.65 |
% |
Other assets |
|
|
8,529 |
|
|
|
9,159 |
|
|
(6.88 |
)% |
TOTAL ASSETS |
|
$ |
2,065,143 |
|
|
$ |
1,916,809 |
|
|
7.74 |
% |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
1,136,483 |
|
|
$ |
1,098,265 |
|
|
3.48 |
% |
Noninterest-bearing
deposits |
|
|
502,352 |
|
|
|
514,130 |
|
|
(2.29 |
)% |
Total deposits |
|
|
1,638,835 |
|
|
|
1,612,395 |
|
|
1.64 |
% |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
97,102 |
|
|
|
6,634 |
|
|
1,363.70 |
% |
Long-term borrowings |
|
|
132,738 |
|
|
|
112,918 |
|
|
17.55 |
% |
Accrued interest payable |
|
|
1,172 |
|
|
|
471 |
|
|
148.83 |
% |
Operating lease liability |
|
|
2,690 |
|
|
|
2,847 |
|
|
(5.51 |
)% |
Other liabilities |
|
|
18,636 |
|
|
|
13,117 |
|
|
42.08 |
% |
TOTAL LIABILITIES |
|
|
1,891,173 |
|
|
|
1,748,382 |
|
|
8.17 |
% |
|
|
|
|
|
|
|
|
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; 7,570,086 and 7,554,567 shares
issued; 7,059,861 and 7,074,342 shares outstanding |
|
|
42,057 |
|
|
|
41,969 |
|
|
0.21 |
% |
Additional paid-in
capital |
|
|
54,572 |
|
|
|
54,191 |
|
|
0.70 |
% |
Retained earnings |
|
|
102,194 |
|
|
|
90,928 |
|
|
12.39 |
% |
Accumulated other
comprehensive loss: |
|
|
|
|
|
|
|
Net unrealized loss on available for sale securities |
|
|
(7,928 |
) |
|
|
(3,074 |
) |
|
(157.91 |
)% |
Defined benefit plan |
|
|
(4,110 |
) |
|
|
(3,472 |
) |
|
(18.38 |
)% |
Treasury stock at cost,
510,225 and 480,225 |
|
|
(12,815 |
) |
|
|
(12,115 |
) |
|
5.78 |
% |
TOTAL SHAREHOLDERS'
EQUITY |
|
|
173,970 |
|
|
|
168,427 |
|
|
3.29 |
% |
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
2,065,143 |
|
|
$ |
1,916,809 |
|
|
7.74 |
% |
PENNS WOODS BANCORP, INC.CONSOLIDATED STATEMENT OF
INCOME(UNAUDITED) |
|
|
Three Months Ended March 31, |
(In Thousands, Except Share
and Per Share Data) |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
INTEREST AND DIVIDEND INCOME: |
|
|
|
|
|
|
Loans including fees |
|
$ |
18,005 |
|
|
$ |
13,038 |
|
|
38.10 |
% |
Investment securities: |
|
|
|
|
|
|
Taxable |
|
|
1,218 |
|
|
|
737 |
|
|
65.26 |
% |
Tax-exempt |
|
|
178 |
|
|
|
164 |
|
|
8.54 |
% |
Dividend and other interest income |
|
|
463 |
|
|
|
336 |
|
|
37.80 |
% |
TOTAL INTEREST AND DIVIDEND
INCOME |
|
|
19,864 |
|
|
|
14,275 |
|
|
39.15 |
% |
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Deposits |
|
|
3,372 |
|
|
|
788 |
|
|
327.92 |
% |
Short-term borrowings |
|
|
1,440 |
|
|
|
1 |
|
|
n/m |
|
Long-term borrowings |
|
|
754 |
|
|
|
633 |
|
|
19.12 |
% |
TOTAL INTEREST EXPENSE |
|
|
5,566 |
|
|
|
1,422 |
|
|
291.42 |
% |
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
14,298 |
|
|
|
12,853 |
|
|
11.24 |
% |
|
|
|
|
|
|
|
PROVISION FOR CREDIT
LOSSES |
|
|
71 |
|
|
|
150 |
|
|
(52.67 |
)% |
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER
(RECOVERY) PROVISION FOR CREDIT LOSSES |
|
|
14,227 |
|
|
|
12,703 |
|
|
12.00 |
% |
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Service charges |
|
|
496 |
|
|
|
495 |
|
|
0.20 |
% |
Debt securities losses,
available for sale |
|
|
(61 |
) |
|
|
(2 |
) |
|
(2,950.00 |
)% |
Net equity securities gains
(losses} |
|
|
21 |
|
|
|
(59 |
) |
|
135.59 |
% |
Bank-owned life insurance |
|
|
556 |
|
|
|
170 |
|
|
227.06 |
% |
Gain on sale of loans |
|
|
231 |
|
|
|
345 |
|
|
(33.04 |
)% |
Insurance commissions |
|
|
165 |
|
|
|
170 |
|
|
(2.94 |
)% |
Brokerage commissions |
|
|
165 |
|
|
|
200 |
|
|
(17.50 |
)% |
Loan broker income |
|
|
170 |
|
|
|
541 |
|
|
(68.58 |
)% |
Debit card income |
|
|
335 |
|
|
|
345 |
|
|
(2.90 |
)% |
Other |
|
|
179 |
|
|
|
207 |
|
|
(13.53 |
)% |
TOTAL NON-INTEREST INCOME |
|
|
2,257 |
|
|
|
2,412 |
|
|
(6.43 |
)% |
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
6,176 |
|
|
|
6,264 |
|
|
(1.40 |
)% |
Occupancy |
|
|
866 |
|
|
|
910 |
|
|
(4.84 |
)% |
Furniture and equipment |
|
|
846 |
|
|
|
892 |
|
|
(5.16 |
)% |
Software amortization |
|
|
183 |
|
|
|
253 |
|
|
(27.67 |
)% |
Pennsylvania shares tax |
|
|
248 |
|
|
|
389 |
|
|
(36.25 |
)% |
Professional fees |
|
|
688 |
|
|
|
538 |
|
|
27.88 |
% |
Federal Deposit Insurance
Corporation deposit insurance |
|
|
245 |
|
|
|
202 |
|
|
21.29 |
% |
Marketing |
|
|
155 |
|
|
|
64 |
|
|
142.19 |
% |
Intangible amortization |
|
|
35 |
|
|
|
43 |
|
|
(18.60 |
)% |
Other |
|
|
1,456 |
|
|
|
1,452 |
|
|
0.28 |
% |
TOTAL NON-INTEREST
EXPENSE |
|
|
10,898 |
|
|
|
11,007 |
|
|
(0.99 |
)% |
INCOME BEFORE INCOME TAX
PROVISION |
|
|
5,586 |
|
|
|
4,108 |
|
|
35.98 |
% |
INCOME TAX PROVISION |
|
|
928 |
|
|
|
676 |
|
|
37.28 |
% |
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS' |
|
$ |
4,658 |
|
|
$ |
3,432 |
|
|
35.72 |
% |
EARNINGS PER SHARE -
BASIC |
|
$ |
0.66 |
|
|
$ |
0.49 |
|
|
34.69 |
% |
EARNINGS PER SHARE -
DILUTED |
|
$ |
0.64 |
|
|
$ |
0.49 |
|
|
30.61 |
% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC |
|
|
7,058,397 |
|
|
|
7,072,575 |
|
|
(0.20 |
)% |
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED |
|
|
7,334,197 |
|
|
|
7,072,575 |
|
|
3.70 |
% |
PENNS WOODS BANCORP, INC.AVERAGE BALANCES AND
INTEREST RATES(UNAUDITED) |
|
|
Three Months Ended |
|
|
March 31, 2023 |
|
March 31, 2022 |
(Dollars in Thousands) |
|
AverageBalance (1) |
|
Interest |
|
AverageRate |
|
AverageBalance (1) |
|
Interest |
|
AverageRate |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax-exempt loans (3) |
|
$ |
64,703 |
|
|
$ |
448 |
|
|
2.81 |
% |
|
$ |
47,974 |
|
|
$ |
308 |
|
|
2.60 |
% |
All other loans |
|
|
1,601,105 |
|
|
|
17,651 |
|
|
4.47 |
% |
|
|
1,351,414 |
|
|
|
12,795 |
|
|
3.84 |
% |
Total loans (2) |
|
|
1,665,808 |
|
|
|
18,099 |
|
|
4.41 |
% |
|
|
1,399,388 |
|
|
|
13,103 |
|
|
3.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
n/a |
|
|
|
50,000 |
|
|
|
93 |
|
|
0.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
|
181,421 |
|
|
|
1,579 |
|
|
3.53 |
% |
|
|
144,438 |
|
|
|
920 |
|
|
2.58 |
% |
Tax-exempt securities (3) |
|
|
33,565 |
|
|
|
225 |
|
|
2.72 |
% |
|
|
40,981 |
|
|
|
208 |
|
|
2.06 |
% |
Total securities |
|
|
214,986 |
|
|
|
1,804 |
|
|
3.40 |
% |
|
|
185,419 |
|
|
|
1,128 |
|
|
2.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
7,031 |
|
|
|
102 |
|
|
5.88 |
% |
|
|
157,541 |
|
|
|
60 |
|
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets |
|
|
1,887,825 |
|
|
|
20,005 |
|
|
4.30 |
% |
|
|
1,792,348 |
|
|
|
14,384 |
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
135,276 |
|
|
|
|
|
|
|
127,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
2,023,101 |
|
|
|
|
|
|
$ |
1,919,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
243,302 |
|
|
|
120 |
|
|
0.20 |
% |
|
$ |
240,953 |
|
|
|
22 |
|
|
0.04 |
% |
Super Now deposits |
|
|
366,424 |
|
|
|
939 |
|
|
1.04 |
% |
|
|
370,895 |
|
|
|
195 |
|
|
0.21 |
% |
Money market deposits |
|
|
289,734 |
|
|
|
1,280 |
|
|
1.79 |
% |
|
|
298,820 |
|
|
|
186 |
|
|
0.25 |
% |
Time deposits |
|
|
188,476 |
|
|
|
1,033 |
|
|
2.22 |
% |
|
|
190,819 |
|
|
|
385 |
|
|
0.82 |
% |
Total interest-bearing
deposits |
|
|
1,087,936 |
|
|
|
3,372 |
|
|
1.26 |
% |
|
|
1,101,487 |
|
|
|
788 |
|
|
0.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
121,754 |
|
|
|
1,440 |
|
|
4.80 |
% |
|
|
5,194 |
|
|
|
1 |
|
|
0.08 |
% |
Long-term borrowings |
|
|
119,267 |
|
|
|
754 |
|
|
2.56 |
% |
|
|
115,267 |
|
|
|
633 |
|
|
2.23 |
% |
Total borrowings |
|
|
241,021 |
|
|
|
2,194 |
|
|
3.69 |
% |
|
|
120,461 |
|
|
|
634 |
|
|
2.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities |
|
|
1,328,957 |
|
|
|
5,566 |
|
|
1.70 |
% |
|
|
1,221,948 |
|
|
|
1,422 |
|
|
0.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
498,180 |
|
|
|
|
|
|
|
506,348 |
|
|
|
|
|
Other liabilities |
|
|
28,367 |
|
|
|
|
|
|
|
23,357 |
|
|
|
|
|
Shareholders’ equity |
|
|
167,597 |
|
|
|
|
|
|
|
168,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
2,023,101 |
|
|
|
|
|
|
$ |
1,919,769 |
|
|
|
|
|
Interest rate spread (3) |
|
|
|
|
|
2.60 |
% |
|
|
|
|
|
2.78 |
% |
Net interest income/margin
(3) |
|
|
|
$ |
14,439 |
|
|
3.10 |
% |
|
|
|
$ |
12,962 |
|
|
2.93 |
% |
1. Information on this table has been calculated using average
daily balance sheets to obtain average balances.2. Non-accrual
loans have been included with loans for the purpose of analyzing
net interest earnings.3. Income and rates on fully taxable
equivalent basis include an adjustment for the difference between
annual income from tax-exempt obligations and the taxable
equivalent of such income at the standard tax rate of 21%. |
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Total interest income |
|
$ |
19,864 |
|
|
$ |
14,275 |
|
Total interest expense |
|
|
5,566 |
|
|
|
1,422 |
|
Net interest income |
|
|
14,298 |
|
|
|
12,853 |
|
Tax equivalent adjustment |
|
|
141 |
|
|
|
109 |
|
Net interest income (fully
taxable equivalent) (non-GAAP) |
|
$ |
14,439 |
|
|
$ |
12,962 |
|
(Dollars in Thousands, Except Share
and Per Share Data, Unaudited) |
|
Quarter Ended |
|
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
Operating
Data |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
4,658 |
|
|
$ |
4,509 |
|
|
$ |
5,250 |
|
|
$ |
4,231 |
|
|
$ |
3,432 |
|
Net interest income |
|
|
14,298 |
|
|
|
15,548 |
|
|
|
15,532 |
|
|
|
13,847 |
|
|
|
12,853 |
|
Provision for credit losses |
|
|
71 |
|
|
|
575 |
|
|
|
855 |
|
|
|
330 |
|
|
|
150 |
|
Net security losses |
|
|
(40 |
) |
|
|
(39 |
) |
|
|
(211 |
) |
|
|
(54 |
) |
|
|
(61 |
) |
Non-interest income, excluding net security losses |
|
|
2,297 |
|
|
|
2,120 |
|
|
|
2,294 |
|
|
|
2,191 |
|
|
|
2,473 |
|
Non-interest expense |
|
|
10,898 |
|
|
|
11,251 |
|
|
|
10,320 |
|
|
|
10,420 |
|
|
|
11,007 |
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Statistics |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
3.10 |
% |
|
|
3.42 |
% |
|
|
3.47 |
% |
|
|
3.12 |
% |
|
|
2.93 |
% |
Annualized return on average assets |
|
|
0.92 |
% |
|
|
0.92 |
% |
|
|
1.09 |
% |
|
|
0.88 |
% |
|
|
0.72 |
% |
Annualized return on average equity |
|
|
11.12 |
% |
|
|
10.92 |
% |
|
|
12.61 |
% |
|
|
10.15 |
% |
|
|
8.17 |
% |
Annualized net loan charge-offs (recoveries) to average loans |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
(0.01 |
)% |
|
|
0.09 |
% |
Net charge-offs (recoveries) |
|
|
123 |
|
|
|
149 |
|
|
|
37 |
|
|
|
(40 |
) |
|
|
303 |
|
Efficiency ratio |
|
|
65.46 |
% |
|
|
59.79 |
% |
|
|
57.70 |
% |
|
|
64.72 |
% |
|
|
71.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.66 |
|
|
$ |
0.64 |
|
|
$ |
0.74 |
|
|
$ |
0.60 |
|
|
$ |
0.49 |
|
Diluted earnings per share |
|
|
0.64 |
|
|
|
0.64 |
|
|
|
0.74 |
|
|
|
0.60 |
|
|
|
0.49 |
|
Dividend declared per share |
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.32 |
|
|
|
0.32 |
|
Book value |
|
|
24.64 |
|
|
|
23.76 |
|
|
|
23.32 |
|
|
|
23.56 |
|
|
|
23.81 |
|
Common stock price: |
|
|
|
|
|
|
|
|
|
|
High |
|
|
27.77 |
|
|
|
26.89 |
|
|
|
24.29 |
|
|
|
24.35 |
|
|
|
24.67 |
|
Low |
|
|
21.90 |
|
|
|
23.15 |
|
|
|
22.02 |
|
|
|
22.34 |
|
|
|
23.64 |
|
Close |
|
|
23.10 |
|
|
|
26.62 |
|
|
|
22.91 |
|
|
|
23.09 |
|
|
|
24.43 |
|
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,058 |
|
|
|
7,055 |
|
|
|
7,051 |
|
|
|
7,059 |
|
|
|
7,073 |
|
Fully Diluted |
|
|
7,334 |
|
|
|
7,055 |
|
|
|
7,051 |
|
|
|
7,059 |
|
|
|
7,073 |
|
End-of-period common shares: |
|
|
|
|
|
|
|
|
|
|
Issued |
|
|
7,570 |
|
|
|
7,567 |
|
|
|
7,563 |
|
|
|
7,559 |
|
|
|
7,555 |
|
Treasury |
|
|
(510 |
) |
|
|
(510 |
) |
|
|
(510 |
) |
|
|
(510 |
) |
|
|
(480 |
) |
(Dollars in Thousands, Except Share
and Per Share Data, Unaudited) |
|
Quarter Ended |
|
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
|
6/30/2022 |
|
3/31/2022 |
Financial Condition
Data: |
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,065,143 |
|
|
$ |
2,000,080 |
|
|
$ |
1,905,116 |
|
|
$ |
1,891,806 |
|
|
$ |
1,916,809 |
|
Loans, net |
|
|
1,688,289 |
|
|
|
1,624,094 |
|
|
|
1,545,489 |
|
|
|
1,474,739 |
|
|
|
1,391,943 |
|
Goodwill |
|
|
16,450 |
|
|
|
16,450 |
|
|
|
17,104 |
|
|
|
17,104 |
|
|
|
17,104 |
|
Intangibles |
|
|
292 |
|
|
|
327 |
|
|
|
361 |
|
|
|
396 |
|
|
|
437 |
|
Total deposits |
|
|
1,638,835 |
|
|
|
1,556,460 |
|
|
|
1,590,415 |
|
|
|
1,589,579 |
|
|
|
1,612,395 |
|
Noninterest-bearing |
|
|
502,352 |
|
|
|
519,063 |
|
|
|
537,403 |
|
|
|
524,288 |
|
|
|
514,130 |
|
Savings |
|
|
239,526 |
|
|
|
247,952 |
|
|
|
249,532 |
|
|
|
249,057 |
|
|
|
245,661 |
|
NOW |
|
|
363,548 |
|
|
|
372,574 |
|
|
|
392,140 |
|
|
|
353,102 |
|
|
|
379,838 |
|
Money Market |
|
|
300,273 |
|
|
|
270,589 |
|
|
|
268,532 |
|
|
|
309,453 |
|
|
|
299,166 |
|
Time Deposits |
|
|
191,203 |
|
|
|
137,949 |
|
|
|
137,348 |
|
|
|
145,714 |
|
|
|
160,592 |
|
Brokered Deposits |
|
|
41,933 |
|
|
|
8,333 |
|
|
|
5,460 |
|
|
|
7,965 |
|
|
|
13,008 |
|
Total interest-bearing deposits |
|
|
1,136,483 |
|
|
|
1,037,397 |
|
|
|
1,053,012 |
|
|
|
1,065,291 |
|
|
|
1,098,265 |
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits* |
|
|
1,405,699 |
|
|
|
1,410,178 |
|
|
|
1,447,607 |
|
|
|
1,435,900 |
|
|
|
1,438,795 |
|
Shareholders’ equity |
|
|
173,970 |
|
|
|
167,665 |
|
|
|
164,489 |
|
|
|
166,054 |
|
|
|
168,427 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
4,766 |
|
|
$ |
4,890 |
|
|
$ |
5,743 |
|
|
$ |
5,100 |
|
|
$ |
5,281 |
|
Non-performing loans to total assets |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.30 |
% |
|
|
0.27 |
% |
|
|
0.28 |
% |
Allowance for loan losses |
|
|
11,734 |
|
|
|
15,637 |
|
|
|
15,211 |
|
|
|
14,393 |
|
|
|
14,023 |
|
Allowance for loan losses to total loans |
|
|
0.69 |
% |
|
|
0.95 |
% |
|
|
0.97 |
% |
|
|
0.97 |
% |
|
|
1.00 |
% |
Allowance for loan losses to non-performing loans |
|
|
246.20 |
% |
|
|
319.78 |
% |
|
|
264.86 |
% |
|
|
282.22 |
% |
|
|
265.54 |
% |
Non-performing loans to total loans |
|
|
0.28 |
% |
|
|
0.30 |
% |
|
|
0.37 |
% |
|
|
0.34 |
% |
|
|
0.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity to total assets |
|
|
8.42 |
% |
|
|
8.40 |
% |
|
|
8.63 |
% |
|
|
8.78 |
% |
|
|
8.79 |
% |
* 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) |
|
|
2023 |
|
|
|
2022 |
|
GAAP net income |
|
$ |
4,658 |
|
|
$ |
3,432 |
|
Net securities losses, net of
tax |
|
|
32 |
|
|
|
48 |
|
Non-GAAP core earnings |
|
$ |
4,690 |
|
|
$ |
3,480 |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Return on average assets
(ROA) |
|
|
0.92 |
% |
|
|
0.72 |
% |
Net securities losses, net of
tax |
|
|
0.01 |
% |
|
|
0.01 |
% |
Non-GAAP core ROA |
|
|
0.93 |
% |
|
|
0.73 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Return on average equity
(ROE) |
|
|
11.12 |
% |
|
|
8.17 |
% |
Net securities losses, net of
tax |
|
|
0.07 |
% |
|
|
0.11 |
% |
Non-GAAP core ROE |
|
|
11.19 |
% |
|
|
8.28 |
% |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Basic earnings per share
(EPS) |
|
$ |
0.66 |
|
|
$ |
0.49 |
|
Net securities losses, net of
tax |
|
|
— |
|
|
|
0.01 |
|
Non-GAAP basic core EPS |
|
$ |
0.66 |
|
|
$ |
0.50 |
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Diluted EPS |
|
$ |
0.64 |
|
|
$ |
0.49 |
|
Net securities losses, net of
tax |
|
|
— |
|
|
|
0.01 |
|
Non-GAAP diluted core EPS |
|
$ |
0.64 |
|
|
$ |
0.50 |
|
Penns Woods Bancorp (NASDAQ:PWOD)
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From Sep 2024 to Oct 2024
Penns Woods Bancorp (NASDAQ:PWOD)
Historical Stock Chart
From Oct 2023 to Oct 2024