0000716605False00007166052024-01-292024-01-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 25, 2024 
Date of Report (Date of earliest event reported)
 
PENNS WOODS BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 000-17077 23-2226454
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Ident. No.)
 
300 Market StreetP.O. Box 96717703-0967
WilliamsportPennsylvania(Zip Code)
(Address of principal executive offices)
 
(570) 322-1111
Registrant's telephone number, including area code
 
N/A
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $5.55 par valuePWODThe Nasdaq Global Select Market
Indicated by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2) ☐
If an emerging growth company, indicate by check mark if registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐


Item 2.02                                           Results of Operation and Financial Condition.
 
On July 25, 2024, Penns Woods Bancorp, Inc. (the “Company”) distributed a press release announcing its earnings for the period ended June 30, 2024.  The press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01                                           Financial Statements and Exhibits.

(d)                                 Exhibits:

99.1        Press release, dated July 25, 2024, of Penns Woods Bancorp, Inc. announcing earnings for the period ended June 30, 2024.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 PENNS WOODS BANCORP, INC.
   
Dated:July 25, 2024  
   
 By:/s/  Brian L. Knepp
  Brian L. Knepp
  President and Chief Financial Officer
 

EXHIBIT INDEX
 
Exhibit Number Description
 Press release, dated July 25, 2024, of Penns Woods Bancorp, Inc. announcing earnings for the period ended June 30, 2024.
104Cover page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).



Exhibit 99.1
image0a17.jpg

Press Release — For Immediate Release
July 25, 2024

Penns Woods Bancorp, Inc. Reports Second Quarter 2024 Earnings

Williamsport, PA — July 25, 2024 - Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $9.2 million for the six months ended June 30, 2024, resulting in basic and diluted earnings per share of $1.22.

Highlights

•Net income, as reported under GAAP, for the three and six months ended June 30, 2024 was $5.4 million and $9.2 million, respectively, compared to $4.2 million and $8.8 million for the same periods of 2023. Results for the three and six months ended June 30, 2024 compared to 2023 were impacted by a increase in net interest income of $1.1 million and $577,000 as the cost of funds has stabilized, which led to a 14 basis point increase in the net interest margin for the second quarter of 2024 compared to the first quarter of 2024. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the six month period ended June 30, 2024.

•The allowance for credit losses was impacted for the three and six months ended June 30, 2024 by negative provisions for credit losses of $1.2 million and $1.0 million, respectively, compared to negative provisions for credit losses of $1.2 million and $1.1 million for the 2023 periods. The recognition of negative provisions for credit losses for all periods is due primarily to recoveries during the second quarter of 2024 and 2023 on a commercial loan. In addition, a minimal level of loan charge-offs contributed to the recognition of the negative provisions for credit losses.

•Basic and diluted earnings per share for the three and six months ended June 30, 2024 were $0.72 and $1.22, respectively, compared to basic and diluted earnings per share of $0.59 and $1.25 for the three and six month periods ended June 30, 2023.

•Annualized return on average assets was 0.97% for the three months ended June 30, 2024, compared to 0.80% for the corresponding period of 2023. Annualized return on average assets was 0.83% for the six months ended June 30, 2024, compared to 0.86% for the corresponding period of 2023.

•Annualized return on average equity was 11.12% for the three months ended June 30, 2024, compared to 9.53% for the corresponding period of 2023. Annualized return on average equity was 9.67% for the six months ended June 30, 2024, compared to 10.37% for the corresponding period of 2023.

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 $5.4 million and $9.2 million, respectively, for the three and six months ended June 30, 2024 compared to $4.2 million and $8.9 million for the same periods of 2023. Basic and diluted core earnings per share (non-GAAP) for the three and six months ended June 30, 2024 were $0.72 and $1.23, respectively, while basic and diluted core earnings per share for the same periods of 2023 were $0.60 and $1.26. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.98% and 11.15%, respectively, for the three months ended June 30, 2024, compared to 0.80% and 9.60% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.83% and 9.72%, respectively, for the six months ended June 30, 2024, compared to 0.86% and 10.44% for the corresponding period of 2023. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.
1


Net Interest Margin

The net interest margin for the three and six months ended June 30, 2024 was 2.83% and 2.75% respectively, compared to 2.77% and 2.92% for the corresponding periods of 2023. The increase in the net interest margin for the three month period was driven by an increase in the rate paid on interest-earning assets of 74 basis points ("bps"), while the decrease in the net interest margin for the six month period was driven by a 120 bps increase in the rate paid on interest-bearing liabilities. The FOMC rate increases enacted over the past several years contributed to the increase in rate paid on interest-bearing liabilities as the rate paid on interest-bearing liabilities increased 86 bps and 120 bps for the three and six month periods ended June 30, 2024 compared to the same periods of 2023. Short-term borrowings decreased in volume, which offset the impact of an increase in rate paid, resulting in a decrease of $1.1 million and $580,000 in expense for the three and six month periods ended June 30, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 115 bps and 137 bps or $4.0 million and $8.6 million in expense for the three and six month periods ended June 30, 2024 compared to the corresponding periods of 2023 due to the FOMC rate actions, an increase in competition for deposits, and a migration of deposit balances from core deposits to higher rate time deposits. The rates paid on time deposits significantly contributed to the increase in funding costs as rates paid for the three and six month periods ended June 30, 2024 compared to the same periods of 2023 increased 119 bps and 150 bps, respectively, or $2.8 million and $6.0 million in expense, as deposit gathering campaigns continued to focus on time deposits with a maturity of five months. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit funding costs. Partially offsetting the increase in funding cost was an increase in the yield on interest-earning assets and growth in the average balance of the earning assets portfolio compared to the same periods in 2023. The average loan portfolio balance increased $120.8 million and $153.0 million for the three and six month periods ended June 30, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 73 bps and 76 bps resulting in an increase in taxable equivalent interest income of $4.7 million and $10.5 million for the periods. The three and six month periods ended June 30, 2024 were impacted by an increase of 78 bps and 79 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates, which resulted in an increase of taxable equivalent interest income of $434,000 and $897,000, respectively.

Assets

Total assets increased to $2.2 billion at June 30, 2024, an increase of $99.3 million compared to June 30, 2023.  Net loans increased $97.2 million to $1.9 billion at June 30, 2024 compared to June 30, 2023, as continued emphasis was placed on commercial loan growth coupled with growth in indirect auto lending. The investment portfolio increased $11.4 million from June 30, 2023 to June 30, 2024. Investment debt securities increased $13.1 million from June 30, 2023 to June 30, 2024 as fixed rate instruments with maturities of approximately ten years were added to the portfolio to lock in yields prior to anticipated FOMC actions to reduce interest rates. The decrease in total borrowings of $19.6 million to $363.5 million at June 30, 2024 was the result of increased utilization of brokered deposits which replaced short-term borrowings.

Non-performing Loans

The ratio of non-performing loans to total loans ratio increased to 0.36% at June 30, 2024 from 0.24% at June 30, 2023, as non-performing loans increased to $6.8 million at June 30, 2024 from $4.3 million at June 30, 2023. 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 individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan recoveries of $396,000 and $16,000 for the three and six months ended June 30, 2024, respectively, impacted the allowance for credit losses, which was 0.60% of total loans at June 30, 2024 compared to 0.66% at June 30, 2023. Exposure to non-owner occupied office space is minimal at $15.5 million at June 30, 2024 with none of these loans being delinquent.

Deposits

Deposits increased $94.3 million to $1.6 billion at June 30, 2024 compared to June 30, 2023. Noninterest-bearing deposits decreased $14.8 million to $461.1 million at June 30, 2024 compared to June 30, 2023.  Core deposits declined as deposits migrated 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 by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $109.2 million from June 30, 2023 to June 30, 2024 primarily due to growth in the time deposit portfolio of $84.0 million as customers sought a higher rate of interest. Brokered deposit balances increased $41.3 million from June 20,2023 to June 30, 2024 as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued throughout 2023 and 2024 with current efforts centered on five months.

2

Shareholders’ Equity

Shareholders’ equity increased $22.7 million to $197.1 million at June 30, 2024 compared to June 30, 2023 due in part to a registered at-the-market offering that generated $8.3 million in capital during the second half of 2023.  During the three and six months ended June 30, 2024 there were no shares issued as part of the registered at-the-market offering. A total of 11,036 and 21,976 shares for net proceeds of $222,000 and $427,000 were issued as part of the Dividend Reinvestment Plan during the three and six months ended June 30 2024. Accumulated other comprehensive loss of $9.1 million at June 30, 2024 decreased from a loss of $13.8 million at June 30, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $6.3 million at June 30, 2024 from a net unrealized loss of $9.8 million at June 30, 2023 coupled with a decrease in loss of $1.4 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $26.13 at June 30, 2024 compared to $24.69 at June 30, 2023, and an equity to asset ratio of 8.82% at June 30, 2024 and 8.17% at June 30, 2023. Tangible book value per share (a non-GAAP measure) increased to $23.93 at June 30, 2024 compared to $22.32 at June 30, 2023. Dividends declared for the three and six months ended June 30, 2024 and 2023 were $0.32 and $0.64 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, 2023.

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
 570-322-1111e-mail: pwod@pwod.com

3

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
 
 June 30,
(In Thousands, Except Share and Per Share Data)20242023% Change
ASSETS:   
Noninterest-bearing balances$24,996 $32,265 (22.53)%
Interest-bearing balances in other financial institutions10,100 12,596 (19.82)%
Total cash and cash equivalents35,096 44,861 (21.77)%
Investment debt securities, available for sale, at fair value199,718 186,626 7.02 %
Investment equity securities, at fair value1,105 1,143 (3.32)%
Restricted investment in bank stock22,781 24,438 (6.78)%
Loans held for sale4,444 3,049 45.75 %
Loans1,866,288 1,769,403 5.48 %
Allowance for credit losses(11,234)(11,592)(3.09)%
Loans, net1,855,054 1,757,811 5.53 %
Premises and equipment, net28,966 31,180 (7.10)%
Accrued interest receivable11,281 9,498 18.77 %
Bank-owned life insurance33,024 33,524 (1.49)%
Investment in limited partnerships7,240 8,402 (13.83)%
Goodwill16,450 16,450 — %
Intangibles158 260 (39.23)%
Operating lease right of use asset2,911 2,586 12.57 %
Deferred tax asset4,433 6,332 (29.99)%
Other assets11,956 9,159 30.54 %
TOTAL ASSETS$2,234,617 $2,135,319 4.65 %
LIABILITIES:   
Interest-bearing deposits$1,187,001 $1,077,820 10.13 %
Noninterest-bearing deposits461,092 475,937 (3.12)%
Total deposits1,648,093 1,553,757 6.07 %
Short-term borrowings106,407 180,410 (41.02)%
Long-term borrowings257,111 202,692 26.85 %
Accrued interest payable5,474 2,129 157.12 %
Operating lease liability2,983 2,642 12.91 %
Other liabilities17,462 19,287 (9.46)%
TOTAL LIABILITIES2,037,530 1,960,917 3.91 %
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; 8,051,699 and 7,573,713 shares issued; 7,541,474 and 7,063,488 shares outstanding44,730 42,077 6.31 %
Additional paid-in capital62,608 54,869 14.10 %
Retained earnings111,622 104,104 7.22 %
Accumulated other comprehensive loss:  
Net unrealized loss on available for sale securities(6,328)(9,753)35.12 %
Defined benefit plan(2,730)(4,080)33.09 %
Treasury stock at cost, 510,225 shares(12,815)(12,815)— %
TOTAL SHAREHOLDERS' EQUITY197,087 174,402 13.01 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,234,617 $2,135,319 4.65 %
4

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
(In Thousands, Except Share and Per Share Data)20242023% Change20242023% Change
INTEREST AND DIVIDEND INCOME:      
Loans including fees$24,529 $19,846 23.60 %$48,389 $37,851 27.84 %
Investment securities:     
Taxable1,745 1,287 35.59 %3,339 2,505 33.29 %
Tax-exempt75 118 (36.44)%172 296 (41.89)%
Dividend and other interest income680 642 5.92 %1,359 1,105 22.99 %
TOTAL INTEREST AND DIVIDEND INCOME27,029 21,893 23.46 %53,259 41,757 27.55 %
INTEREST EXPENSE:      
Deposits8,877 4,851 82.99 %16,840 8,223 104.79 %
Short-term borrowings1,087 2,232 (51.30)%3,092 3,672 (15.80)%
Long-term borrowings2,550 1,424 79.07 %5,066 2,178 132.60 %
TOTAL INTEREST EXPENSE12,514 8,507 47.10 %24,998 14,073 77.63 %
NET INTEREST INCOME14,515 13,386 8.43 %28,261 27,684 2.08 %
RECOVERY OF CREDIT LOSSES (1,177)(1,180)0.25 %(1,039)(1,109)6.31 %
NET INTEREST INCOME AFTER RECOVERY OF CREDIT LOSSES15,692 14,566 7.73 %29,300 28,793 1.76 %
NON-INTEREST INCOME:     
Service charges499 516 (3.29)%1,014 1,012 0.20 %
Net debt securities losses, available for sale(12)(19)36.84 %(35)(80)56.25 %
Net equity securities (losses) gains(7)(20)65.00 %(17)1 N/M
Bank-owned life insurance187 166 12.65 %650 722 (9.97)%
Gain on sale of loans300 244 22.95 %.605 475 27.37 %
Insurance commissions127 115 10.43 %280 280 — %
Brokerage commissions171 141 21.28 %357 306 16.67 %
Loan broker income268 317 (15.46)%490 487 0.62 %
Debit card income368 340 8.24 %697 675 3.26 %
Other124 222 (44.14)%446 401 11.22 %
TOTAL NON-INTEREST INCOME2,025 2,022 0.15 %4,487 4,279 4.86 %
NON-INTEREST EXPENSE:      
Salaries and employee benefits6,400 6,312 1.39 %12,822 12,488 2.67 %
Occupancy758 772 (1.81)%1,663 1,638 1.53 %
Furniture and equipment766 790 (3.04)%1,705 1,636 4.22 %
Software amortization222 173 28.32 %412 356 15.73 %
Pennsylvania shares tax351 279 25.81 %671 527 27.32 %
Professional fees572 906 (36.87)%1,124 1,594 (29.49)%
Federal Deposit Insurance Corporation deposit insurance421 452 (6.86)%780 697 11.91 %
Marketing78 272 (71.32)%149 427 (65.11)%
Intangible amortization25 32 (21.88)%51 67 (23.88)%
Other1,403 1,441 (2.64)%3,242 2,897 11.91 %
TOTAL NON-INTEREST EXPENSE10,996 11,429 (3.79)%22,619 22,327 1.31 %
INCOME BEFORE INCOME TAX PROVISION6,721 5,159 30.28 %11,168 10,745 3.94 %
INCOME TAX PROVISION1,331 988 34.72 %1,970 1,916 2.82 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'$5,390 $4,171 29.23 %$9,198 $8,829 4.18 %
EARNINGS PER SHARE - BASIC $0.72 $0.59 22.03 %$1.22 $1.25 (2.40)%
EARNINGS PER SHARE - DILUTED$0.72 $0.59 22.03 %$1.22 $1.25 (2.40)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC7,529,239 7,062,018 6.62 %7,520,880 7,060,218 6.52 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED7,529,239 7,062,018 6.62 %7,520,880 7,060,218 6.52 %



5


PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
 Three Months Ended
 June 30, 2024June 30, 2023
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$68,826 $493 2.88 %$66,613 $461 2.78 %
All other loans1,790,712 24,140 5.42 %1,672,111 19,482 4.67 %
Total loans (2)
1,859,538 24,633 5.33 %1,738,724 19,943 4.60 %
Taxable securities203,687 2,296 4.58 %190,862 1,807 3.84 %
Tax-exempt securities (3)
12,896 95 3.00 %23,310 150 2.61 %
Total securities216,583 2,391 4.49 %214,172 1,957 3.71 %
Interest-bearing balances in other financial institutions10,783 129 4.81 %9,961 122 4.91 %
Total interest-earning assets2,086,904 27,153 5.24 %1,962,857 22,022 4.50 %
Other assets129,783 133,239   
TOTAL ASSETS$2,216,687   $2,096,096   
LIABILITIES AND SHAREHOLDERS’ EQUITY:      
Savings$218,430 261 0.48 %$232,889 155 0.27 %
Super Now deposits218,200 1,086 2.00 %271,438 913 1.35 %
Money market deposits310,323 2,594 3.36 %293,682 1,665 2.27 %
Time deposits448,571 4,936 4.43 %261,947 2,118 3.24 %
Total interest-bearing deposits1,195,524 8,877 2.99 %1,059,956 4,851 1.84 %
Short-term borrowings79,190 1,087 5.52 %169,723 2,232 5.27 %
Long-term borrowings260,312 2,550 3.94 %182,719 1,424 3.13 %
Total borrowings339,502 3,637 4.31 %352,442 3,656 4.16 %
Total interest-bearing liabilities1,535,026 12,514 3.28 %1,412,398 8,507 2.42 %
Demand deposits459,876 484,607  
Other liabilities27,880 24,059  
Shareholders’ equity193,905 175,032  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,216,687  $2,096,096  
Interest rate spread (3)
  1.96 %  2.08 %
Net interest income/margin (3)
 $14,639 2.83 % $13,515 2.77 %
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 June 30,
 20242023
Total interest income$27,029 $21,893 
Total interest expense12,514 8,507 
Net interest income (GAAP)14,515 13,386 
Tax equivalent adjustment124 129 
Net interest income (fully taxable equivalent) (non-GAAP)$14,639 $13,515 
6

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
 Six Months Ended
 June 30, 2024June 30, 2023
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$69,026 $956 2.78 %$65,669 $909 2.79 %
All other loans1,786,399 47,634 5.36 %1,636,798 37,133 4.57 %
Total loans (2)
1,855,425 48,590 5.27 %1,702,467 38,042 4.51 %
Taxable securities201,981 4,440 4.42 %186,168 3,386 3.67 %
Tax-exempt securities (3)
14,712 218 2.98 %28,409 375 2.66 %
Total securities216,693 4,658 4.32 %214,577 3,761 3.53 %
Interest-bearing balances in other financial institutions10,491 258 4.95 %9,985 224 4.52 %
Total interest-earning assets2,082,609 53,506 5.17 %1,927,029 42,027 4.20 %
Other assets130,370 132,561 
TOTAL ASSETS$2,212,979 $2,059,590 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings$218,576 529 0.49 %$238,067 275 0.23 %
Super Now deposits217,035 2,170 2.01 %318,669 1,852 1.17 %
Money market deposits301,515 4,953 3.30 %291,719 2,945 2.04 %
Time deposits427,870 9,188 4.32 %225,414 3,151 2.82 %
Total interest-bearing deposits1,164,996 16,840 2.91 %1,073,869 8,223 1.54 %
Short-term borrowings111,770 3,092 5.60 %145,871 3,672 5.09 %
Long-term borrowings260,004 5,066 3.92 %151,169 2,178 2.91 %
Total borrowings371,774 8,158 4.42 %297,040 5,850 3.98 %
Total interest-bearing liabilities1,536,770 24,998 3.27 %1,370,909 14,073 2.07 %
Demand deposits455,877 491,356 
Other liabilities30,178 27,050 
Shareholders’ equity190,154 170,275 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,212,979 $2,059,590 
Interest rate spread (3)
1.90 %2.13 %
Net interest income/margin (3)
$28,508 2.75 %$27,954 2.92 %
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%

Six months ended June 30,
 20242023
Total interest income$53,259 $41,757 
Total interest expense24,998 14,073 
Net interest income (GAAP)28,261 27,684 
Tax equivalent adjustment247 270 
Net interest income (fully taxable equivalent) (non-GAAP)$28,508 $27,954 
7

(Dollars in Thousands, Except Per Share Data, Unaudited)Quarter Ended
6/30/20243/31/202412/31/20239/30/20236/30/2023
Operating Data 
Net income$5,390$3,808$5,555$2,224$4,171
Net interest income14,51513,74613,94813,33213,386
(Recovery) provision for credit losses(1,177)138(1,742)1,372(1,180)
Net security losses(19)(33)(18)(81)(39)
Non-interest income, excluding net security losses2,0442,4952,2391,9562,061
Non-interest expense10,99611,62310,99711,17211,429
Performance Statistics
Net interest margin2.83 %2.69 %2.73 %2.65 %2.77 %
Annualized cost of total deposits2.14 %2.01 %1.89 %1.64 %1.26 %
Annualized non-interest income to average assets0.37 %0.45 %0.41 %0.35 %0.39 %
Annualized non-interest expense to average assets1.98 %2.10 %2.02 %2.07 %2.18 %
Annualized return on average assets0.97 %0.69 %1.02 %0.41 %0.80 %
Annualized return on average equity11.12 %8.03 %12.60 %5.06 %9.53 %
Annualized net loan (recoveries) charge-offs to average loans(0.09)%0.08 %(0.05)%0.01 %(0.11)%
Net (recoveries) charge-offs (396)380(209)33(472)
Efficiency ratio66.25 %71.41 %67.78 %72.76 %73.78 %
Per Share Data
Basic earnings per share$0.72$0.51$0.77$0.31$0.59
Diluted earnings per share0.720.510.770.310.59
Dividend declared per share0.320.320.320.320.32
Book value26.1325.7225.5124.5524.69
Tangible book value23.9323.5023.2922.2022.32
Common stock price:
High21.0822.6423.6427.1727.34
Low17.1718.4420.0520.7021.95
Close20.5519.4122.5121.0825.03
Weighted average common shares: 
Basic7,5297,5137,2557,0727,062
Fully Diluted7,5297,5137,2557,2297,062
End-of-period common shares:
Issued8,0528,0368,0197,6207,574
Treasury(510)(510)(510)(510)(510)
8

(Dollars in Thousands, Unaudited)Quarter Ended
6/30/20243/31/202412/31/20239/30/20236/30/2023
Financial Condition Data:     
General     
Total assets$2,234,617$2,210,116$2,204,809$2,176,468$2,135,319
Loans, net1,855,0541,843,8051,828,3181,805,5711,757,811
Goodwill16,45016,45016,45016,45016,450
Intangibles158184210235260
Total deposits1,648,0931,618,5621,589,4931,567,2671,553,757
Noninterest-bearing461,092471,451471,173471,507475,937
Savings218,354220,932219,287226,897229,108
NOW209,906208,073214,888220,730238,353
Money Market320,101299,916299,353291,889296,957
Time Deposits310,187292,372260,067249,550226,224
Brokered Deposits128,453125,818124,725106,69487,178
Total interest-bearing deposits1,187,0011,147,1111,118,3201,095,7601,077,820
Core deposits*1,209,4531,200,3721,204,7011,211,0231,240,355
Shareholders’ equity197,087193,517191,556174,540174,402
Asset Quality
Non-performing loans$6,784$7,958$3,148$3,683$4,276
Non-performing loans to total assets0.30 %0.36 %0.14 %0.17 %0.20 %
Allowance for credit losses on loans11,23411,54211,44612,89011,592
Allowance for credit losses on loans to total loans0.60 %0.62 %0.62 %0.71 %0.66 %
Allowance for credit losses on loans to non-performing loans165.60 %145.04 %363.60 %349.99 %271.09 %
Non-performing loans to total loans0.36 %0.43 %0.17 %0.20 %0.24 %
Capitalization
Shareholders’ equity to total assets8.82 %8.76 %8.69 %8.02 %8.17 %

* Core deposits are defined as total deposits less time deposits and brokered deposits.
9

Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data, Unaudited)2024202320242023
GAAP net income$5,390$4,171$9,198$8,829
Net securities losses, net of tax15314162
Non-GAAP core earnings$5,405$4,202$9,239$8,891
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Return on average assets (ROA)0.97 %0.80 %0.83 %0.86 %
Net securities losses, net of tax0.01 %— %— %— %
Non-GAAP core ROA0.98 %0.80 %0.83 %0.86 %
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Return on average equity (ROE)11.12 %9.53 %9.67 %10.37 %
Net securities losses, net of tax0.03 %0.07 %0.05 %0.07 %
Non-GAAP core ROE11.15 %9.60 %9.72 %10.44 %
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Basic earnings per share (EPS)$0.72$0.59$1.22$1.25
Net securities losses, net of tax—0.010.010.01
Non-GAAP basic core EPS$0.72$0.60$1.23$1.26
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Diluted EPS$0.72$0.59$1.22$1.25
Net securities losses, net of tax—0.010.010.01
Non-GAAP diluted core EPS$0.72$0.60$1.23$1.26
(Dollars in Thousands, Except Share and Per Share Data, Unaudited)Quarter Ended
6/30/20243/31/202412/31/20239/30/20236/30/2023
Total shareholders' equity$197,087 $193,517 $191,556 $174,540 $174,402 
Goodwill(16,450)(16,450)(16,450)(16,450)(16,450)
Intangibles(158)(184)(210)(235)(260)
Tangible shareholders' equity$180,479 $176,883 $174,896 $157,855 $157,692 
Shares outstanding7,541,474 7,525,372 7,508,994 7,110,025 7,063,488 
Book value per share$26.13 $25.72 $25.51 $24.55 $24.69 
Tangible book value per share$23.93 $23.50 $23.29 $22.20 $22.32 




10
v3.24.2
Cover Document
Jan. 29, 2024
Cover [Abstract]  
Title of 12(b) Security Common stock, $5.55 par value
City Area Code (570)
Entity Address, Address Line One 300 Market Street
Entity Incorporation, State or Country Code PA
Entity Registrant Name PENNS WOODS BANCORP, INC.
Document Type 8-K
Document Period End Date Jul. 25, 2024
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity File Number 000-17077
Entity Tax Identification Number 23-2226454
Entity Address, Address Line Two P.O. Box 967
Entity Address, Postal Zip Code 17703-0967
Entity Address, City or Town Williamsport
Entity Address, State or Province PA
Local Phone Number 322-1111
Trading Symbol PWOD
Security Exchange Name NASDAQ
Entity Central Index Key 0000716605
Amendment Flag false
Penns Woods Bancorp (NASDAQ:PWOD)
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