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
October 24, 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 October 24, 2024, Penns Woods Bancorp, Inc. (the “Company”) distributed a press release announcing its earnings for the period ended September 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 October 24, 2024, of Penns Woods Bancorp, Inc. announcing earnings for the period ended September 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:October 24, 2024  
   
 By:/s/  Brian L. Knepp
  Brian L. Knepp
  President and Chief Financial Officer
 

EXHIBIT INDEX
 
Exhibit Number Description
 Press release, dated October 24, 2024, of Penns Woods Bancorp, Inc. announcing earnings for the period ended September 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
October 24, 2024

Penns Woods Bancorp, Inc. Reports Third Quarter 2024 Earnings

Williamsport, PA — October 24, 2024 - Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $14.0 million for the nine months ended September 30, 2024, resulting in basic and diluted earnings per share of $1.86.

Highlights

•Net income, as reported under generally accepted accounting principles (GAAP), for the three and nine months ended September 30, 2024 was $4.8 million and $14.0 million, respectively, compared to $2.2 million and $11.1 million for the same periods of 2023. Results for the three and nine months ended September 30, 2024 compared to 2023 were impacted by an increase in net interest income of $1.7 million and $2.3 million, respectively, as the cost of funds has stabilized. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the nine month period ended September 30, 2024.

•The allowance for credit losses was impacted for the three and nine months ended September 30, 2024 by a provision for credit losses of $740,000 and a negative provision of $299,000, respectively, compared to provisions for credit losses of $1.4 million and $263,000 for the 2023 periods. The recognition of a negative provision for credit losses for the nine months ended September 30, 2024 is due primarily to recoveries during the second quarter of 2024 on a commercial loan. In addition, a minimal level of loan charge-offs of $312,000 contributed to the recognition of the negative provision for credit losses for the nine months ended September 30, 2024.

•Basic and diluted earnings per share for the three and nine months ended September 30, 2024 were $0.64 and $1.86, respectively, compared to basic and diluted earnings per share of $0.31 and $1.56 basic and $1.53 diluted for the three and nine month periods ended September 30, 2023.

•Annualized return on average assets was 0.86% for the three months ended September 30, 2024, compared to 0.41% for the corresponding period of 2023. Annualized return on average assets was 0.84% for the nine months ended September 30, 2024, compared to 0.70% for the corresponding period of 2023.

•Annualized return on average equity was 9.60% for the three months ended September 30, 2024, compared to 5.06% for the corresponding period of 2023. Annualized return on average equity was 9.74% for the nine months ended September 30, 2024, compared to 8.58% for the corresponding period of 2023.

Net Income

Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses, was $4.8 million and $14.0 million, respectively, for the three and nine months ended September 30, 2024 compared to $2.3 million and $11.2 million for the same periods of 2023. Basic and diluted core earnings per share (non-GAAP) for the three and nine months ended September 30, 2024 were $0.63 and $1.86, respectively, while basic and diluted core earnings per share for the three month period of 2023 were $0.32 and for the nine month period of 2023 were $1.58 basic and $1.55 diluted. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.85% and 9.54%, respectively, for the three months ended September 30, 2024, compared to 0.42% and 5.20% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.84% and 9.75%, respectively, for the nine months ended September 30, 2024, compared to 0.71% and 8.67% for the corresponding period of 2023. A reconciliation of the non-GAAP financial
1

measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share 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 and nine months ended September 30, 2024 was 2.88% and 2.79% respectively, compared to 2.65% and 2.82% 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 64 basis points ("bps"), while the decrease in the net interest margin for the nine month period was driven by a 96 bps increase in the rate paid on interest-bearing liabilities. The overall increase in interest rates over the periods resulted in increases to both the yield on the earnings asset portfolio and the rate paid on interest bearing liabilities. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets coupled with portfolio growth. The average loan portfolio balance increased $76.0 million and $127.0 million, respectively, for the three and nine month periods ended September 30, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 65 bps and 72 bps, resulting in an increase in taxable equivalent interest income of $3.9 million and $14.5 million, for the periods. The three and nine month periods ended September 30, 2024 were impacted by an increase of 55 bps and 70 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 in taxable equivalent interest income of $343,000 and $1.2 million, respectively. Short-term borrowings decreased in volume, which offset the impact of an increase in rate paid, resulting in a decrease of $1.5 million and $2.1 million in expense for the three and nine month periods ended September 30, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 76 bps and 116 bps, respectively, or $3.1 million and $11.8 million in expense, for the three and nine month periods ended September 30, 2024 compared to the corresponding periods of 2023 due to the rate environment, 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 nine month periods ended September 30, 2024 compared to the same periods of 2023 increased 70 bps and 114 bps, respectively, or $2.2 million and $8.2 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, while lowering the reliance on higher cost short-term borrowings.

Assets

Total assets increased to $2.3 billion at September 30, 2024, an increase of $82.8 million compared to September 30, 2023.  Net loans increased $58.0 million to $1.9 billion at September 30, 2024 compared to September 30, 2023, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio increased $8.8 million from September 30, 2023 to September 30, 2024. Investment debt securities increased $12.8 million from September 30, 2023 to September 30, 2024 as fixed rate instruments with maturities of approximately ten years were added to the portfolio to lock in yields.

Non-performing Loans

The ratio of non-performing loans to total loans ratio increased to 0.42% at September 30, 2024 from 0.20% at September 30, 2023, as non-performing loans increased to $7.9 million at September 30, 2024 from $3.7 million at September 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 charge offs of $328,000 and $312,000 for the three and nine months ended September 30, 2024, respectively, impacted the allowance for credit losses, which was 0.62% of total loans at September 30, 2024 compared to 0.71% at September 30, 2023. Exposure to non-owner occupied office space is minimal at $13.9 million at September 30, 2024 with none of these loans being delinquent.

Deposits

Deposits increased $133.1 million to $1.7 billion at September 30, 2024 compared to September 30, 2023. Noninterest-bearing deposits decreased $18.6 million to $452.9 million at September 30, 2024 compared to September 30, 2023.  Core deposits declined $6.6 million as deposits migrated from core deposit accounts into time deposits as market rates and competition for deposits increased. 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 $151.6 million from September 30, 2023 to September 30, 2024 due to growth in the time deposit portfolio of $78.7 million as customers sought a higher rate of interest. Brokered deposit balances increased $61.0 million to $167.7 million at September 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 $29.2 million to $203.7 million at September 30, 2024 compared to September 30, 2023 due in part to a registered at-the-market offering that generated $7.5 million in capital during the fourth quarter of 2023.  During the three and nine months ended September 30, 2024 there were no shares issued as part of the registered at-the-market offering. A total of 9,074 and 31,050 shares for net proceeds of $205,000 and $632,000 were issued as part of the Dividend Reinvestment Plan during the three and nine months ended September 30 2024. Accumulated other comprehensive loss of $5.3 million at September 30, 2024 decreased from a loss of $14.9 million at September 30, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $2.6 million at September 30, 2024 from a net unrealized loss of $10.9 million at September 30, 2023, coupled with a decrease in loss of $1.3 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $26.96 at September 30, 2024 compared to $24.55 at September 30, 2023, and an equity to asset ratio of 9.02% at September 30, 2024 and 8.02% at September 30, 2023. Tangible book value per share (a non-GAAP measure) increased to $24.77 at September 30, 2024 compared to $22.20 at September 30, 2023. Dividends declared for the three and nine months ended September 30, 2024 and 2023 were $0.32 and $0.96 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)
 
 September 30,
(In Thousands, Except Share and Per Share Data)20242023% Change
ASSETS:   
Noninterest-bearing balances$28,805 $26,651 8.08 %
Interest-bearing balances in other financial institutions10,889 8,939 21.81 %
Total cash and cash equivalents39,694 35,590 11.53 %
Investment debt securities, available for sale, at fair value197,466 184,667 6.93 %
Investment equity securities, at fair value1,145 1,072 6.81 %
Restricted investment in bank stock21,227 25,289 (16.06)%
Loans held for sale8,967 4,083 119.62 %
Loans1,875,174 1,818,461 3.12 %
Allowance for credit losses(11,588)(12,890)(10.10)%
Loans, net1,863,586 1,805,571 3.21 %
Premises and equipment, net27,975 30,746 (9.01)%
Accrued interest receivable11,433 10,500 8.89 %
Bank-owned life insurance45,378 33,695 34.67 %
Investment in limited partnerships6,966 8,275 (15.82)%
Goodwill16,450 16,450 — %
Intangibles133 235 (43.40)%
Operating lease right of use asset2,861 2,562 11.67 %
Deferred tax asset3,034 6,961 (56.41)%
Other assets12,935 10,772 20.08 %
TOTAL ASSETS$2,259,250 $2,176,468 3.80 %
LIABILITIES:   
Interest-bearing deposits$1,247,399 $1,095,760 13.84 %
Noninterest-bearing deposits452,922 471,507 (3.94)%
Total deposits1,700,321 1,567,267 8.49 %
Short-term borrowings78,305 193,746 (59.58)%
Long-term borrowings252,508 217,645 16.02 %
Accrued interest payable5,509 2,716 102.84 %
Operating lease liability2,936 2,619 12.10 %
Other liabilities15,977 17,935 (10.92)%
TOTAL LIABILITIES2,055,556 2,001,928 2.68 %
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; 8,064,713 and 7,620,250 shares issued; 7,554,488 and 7,110,025 shares outstanding44,802 42,335 5.83 %
Additional paid-in capital62,989 55,890 12.70 %
Retained earnings114,008 104,067 9.55 %
Accumulated other comprehensive loss:  
Net unrealized loss on available for sale securities(2,571)(10,886)76.38 %
Defined benefit plan(2,719)(4,051)32.88 %
Treasury stock at cost, 510,225 shares(12,815)(12,815)— %
TOTAL SHAREHOLDERS' EQUITY203,694 174,540 16.70 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,259,250 $2,176,468 3.80 %
4

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended September 30,Nine Months Ended September 30,
(In Thousands, Except Share and Per Share Data)20242023% Change20242023% Change
INTEREST AND DIVIDEND INCOME:      
Loans including fees$25,632 $21,720 18.01 %$74,021 $59,571 24.26 %
Investment securities:     
Taxable1,874 1,365 37.29 %5,213 3,870 34.70 %
Tax-exempt61 114 (46.49)%233 410 (43.17)%
Dividend and other interest income621 722 (13.99)%1,980 1,827 8.37 %
TOTAL INTEREST AND DIVIDEND INCOME28,188 23,921 17.84 %81,447 65,678 24.01 %
INTEREST EXPENSE:      
Deposits9,599 6,463 48.52 %26,439 14,686 80.03 %
Short-term borrowings932 2,412 (61.36)%4,024 6,084 (33.86)%
Long-term borrowings2,601 1,714 51.75 %7,667 3,892 96.99 %
TOTAL INTEREST EXPENSE13,132 10,589 24.02 %38,130 24,662 54.61 %
NET INTEREST INCOME15,056 13,332 12.93 %43,317 41,016 5.61 %
PROVISION (RECOVERY) FOR CREDIT LOSSES 740 1,372 (46.06)%(299)263 (213.69)%
NET INTEREST INCOME AFTER PROVISION (RECOVERY) OF CREDIT LOSSES14,316 11,960 19.70 %43,616 40,753 7.03 %
NON-INTEREST INCOME:     
Service charges537 545 (1.47)%1,551 1,557 (0.39)%
Net debt securities losses, available for sale(5)(45)88.89 %(40)(125)68.00 %
Net equity securities gains (losses)41 (36)213.89 %24 (35)168.57 %
Bank-owned life insurance206 170 21.18 %856 892 (4.04)%
Gain on sale of loans416 257 61.87 %.1,021 732 39.48 %
Insurance commissions145 136 6.62 %425 416 2.16 %
Brokerage commissions164 142 15.49 %521 448 16.29 %
Loan broker income351 241 45.64 %841 728 15.52 %
Debit card income355 320 10.94 %1,052 995 5.73 %
Other211 145 45.52 %657 546 20.33 %
TOTAL NON-INTEREST INCOME2,421 1,875 29.12 %6,908 6,154 12.25 %
NON-INTEREST EXPENSE:      
Salaries and employee benefits6,402 6,290 1.78 %19,224 18,778 2.38 %
Occupancy731 784 (6.76)%2,394 2,422 (1.16)%
Furniture and equipment731 867 (15.69)%2,436 2,503 (2.68)%
Software amortization245 237 3.38 %657 593 10.79 %
Pennsylvania shares tax351 280 25.36 %1,022 807 26.64 %
Professional fees530 719 (26.29)%1,654 2,313 (28.49)%
Federal Deposit Insurance Corporation deposit insurance399 425 (6.12)%1,179 1,122 5.08 %
Marketing60 167 (64.07)%209 594 (64.81)%
Intangible amortization26 25 4.00 %77 92 (16.30)%
Other1,409 1,378 2.25 %4,652 4,275 8.82 %
TOTAL NON-INTEREST EXPENSE10,884 11,172 (2.58)%33,504 33,499 0.01 %
INCOME BEFORE INCOME TAX PROVISION5,853 2,663 119.79 %17,020 13,408 26.94 %
INCOME TAX PROVISION1,052 439 139.64 %3,022 2,355 28.32 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'$4,801 $2,224 115.87 %$13,998 $11,053 26.64 %
EARNINGS PER SHARE - BASIC $0.64 $0.31 106.45 %$1.86 $1.56 19.23 %
EARNINGS PER SHARE - DILUTED$0.64 $0.31 106.45 %$1.86 $1.53 21.57 %
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC7,544,344 7,072,440 6.67 %7,528,758 7,064,336 6.57 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED7,544,344 7,228,940 4.36 %7,528,758 7,220,836 4.26 %



5


PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
 Three Months Ended
 September 30, 2024September 30, 2023
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$69,831 $534 3.04 %$68,243 $462 2.69 %
All other loans1,805,097 25,210 5.56 %1,730,669 21,355 4.90 %
Total loans (2)
1,874,928 25,744 5.46 %1,798,912 21,817 4.81 %
Taxable securities207,888 2,355 4.61 %193,019 1,945 4.09 %
Tax-exempt securities (3)
11,475 77 2.73 %20,777 144 2.81 %
Total securities219,363 2,432 4.51 %213,796 2,089 3.96 %
Interest-bearing balances in other financial institutions10,167 140 5.48 %11,868 142 4.75 %
Total interest-earning assets2,104,458 28,316 5.36 %2,024,576 24,048 4.72 %
Other assets132,244 131,451   
TOTAL ASSETS$2,236,702   $2,156,027   
LIABILITIES AND SHAREHOLDERS’ EQUITY:      
Savings$214,050 282 0.52 %$225,357 181 0.32 %
Super Now deposits220,825 1,133 2.04 %244,387 1,174 1.91 %
Money market deposits320,908 2,781 3.45 %294,006 1,862 2.51 %
Time deposits482,335 5,403 4.46 %342,450 3,246 3.76 %
Total interest-bearing deposits1,238,118 9,599 3.08 %1,106,200 6,463 2.32 %
Short-term borrowings66,795 932 5.54 %173,364 2,412 5.52 %
Long-term borrowings250,938 2,601 4.12 %204,901 1,714 3.32 %
Total borrowings317,733 3,533 4.42 %378,265 4,126 4.33 %
Total interest-bearing liabilities1,555,851 13,132 3.35 %1,484,465 10,589 2.83 %
Demand deposits453,169 471,494  
Other liabilities27,558 24,193  
Shareholders’ equity200,124 175,875  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,236,702  $2,156,027  
Interest rate spread (3)
  2.01 %  1.89 %
Net interest income/margin (3)
 $15,184 2.88 % $13,459 2.65 %
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 September 30,
 20242023
Total interest income$28,188 $23,921 
Total interest expense13,132 10,589 
Net interest income (GAAP)15,056 13,332 
Tax equivalent adjustment128 127 
Net interest income (fully taxable equivalent) (non-GAAP)$15,184 $13,459 
6

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
 Nine Months Ended
 September 30, 2024September 30, 2023
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$69,455 $1,490 2.87 %$66,372 $1,371 2.76 %
All other loans1,792,518 72,844 5.43 %1,668,596 58,488 4.69 %
Total loans (2)
1,861,973 74,334 5.33 %1,734,968 59,859 4.61 %
Taxable securities203,964 6,795 4.45 %188,477 5,331 3.78 %
Tax-exempt securities (3)
13,625 295 2.89 %25,837 519 2.69 %
Total securities217,589 7,090 4.35 %214,314 5,850 3.65 %
Interest-bearing balances in other financial institutions10,382 398 5.12 %10,619 366 4.61 %
Total interest-earning assets2,089,944 81,822 5.24 %1,959,901 66,075 4.41 %
Other assets131,000 132,133 
TOTAL ASSETS$2,220,944 $2,092,034 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings$217,056 811 0.50 %$233,784 456 0.26 %
Super Now deposits218,307 3,303 2.02 %293,636 3,026 1.38 %
Money market deposits308,027 7,734 3.35 %292,490 4,807 2.20 %
Time deposits446,158 14,591 4.37 %264,855 6,397 3.23 %
Total interest-bearing deposits1,189,548 26,439 2.97 %1,084,765 14,686 1.81 %
Short-term borrowings96,669 4,024 5.60 %155,136 6,084 5.26 %
Long-term borrowings256,960 7,667 3.99 %169,276 3,892 3.07 %
Total borrowings353,629 11,691 4.43 %324,412 9,976 4.12 %
Total interest-bearing liabilities1,543,177 38,130 3.30 %1,409,177 24,662 2.34 %
Demand deposits454,967 484,662 
Other liabilities31,133 26,334 
Shareholders’ equity191,667 171,861 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,220,944 $2,092,034 
Interest rate spread (3)
1.94 %2.07 %
Net interest income/margin (3)
$43,692 2.79 %$41,413 2.82 %
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%

Nine months ended September 30,
 20242023
Total interest income$81,447 $65,678 
Total interest expense38,130 24,662 
Net interest income (GAAP)43,317 41,016 
Tax equivalent adjustment375 397 
Net interest income (fully taxable equivalent) (non-GAAP)$43,692 $41,413 
7

(Dollars in Thousands, Except Per Share Data, Unaudited)Quarter Ended
9/30/20246/30/20243/31/202412/31/20239/30/2023
Operating Data 
Net income$4,801$5,390$3,808$5,555$2,224
Net interest income15,05614,51513,74613,94813,332
Provision (recovery) for credit losses740(1,177)138(1,742)1,372
Net security gains (losses)36(19)(33)(18)(81)
Non-interest income, excluding net security gains (losses)2,3852,0442,4952,2391,956
Non-interest expense10,88410,99611,62310,99711,172
Performance Statistics
Net interest margin2.88 %2.83 %2.69 %2.73 %2.65 %
Annualized cost of total deposits2.27 %2.14 %2.01 %1.89 %1.64 %
Annualized non-interest income to average assets0.43 %0.37 %0.45 %0.41 %0.35 %
Annualized non-interest expense to average assets1.95 %1.98 %2.10 %2.02 %2.07 %
Annualized return on average assets0.86 %0.97 %0.69 %1.02 %0.41 %
Annualized return on average equity9.60 %11.12 %8.03 %12.60 %5.06 %
Annualized net loan charge-offs (recoveries) to average loans0.07 %(0.09)%0.08 %(0.05)%0.01 %
Net charge-offs (recoveries) 328(396)380(209)33
Efficiency ratio62.26 %66.25 %71.41 %67.78 %72.76 %
Per Share Data
Basic earnings per share$0.64$0.72$0.51$0.77$0.31
Diluted earnings per share0.640.720.510.770.31
Dividend declared per share0.320.320.320.320.32
Book value26.9626.1325.7225.5124.55
Tangible book value (Non-GAAP)24.7723.9323.5023.2922.20
Common stock price:
High23.9821.0822.6423.6427.17
Low19.2917.1718.4420.0520.70
Close23.7920.5519.4122.5121.08
Weighted average common shares: 
Basic7,5447,5297,5137,2557,072
Fully Diluted7,5447,5297,5137,2557,229
End-of-period common shares:
Issued8,0658,0528,0368,0197,620
Treasury(510)(510)(510)(510)(510)
8

(Dollars in Thousands, Unaudited)Quarter Ended
9/30/20246/30/20243/31/202412/31/20239/30/2023
Financial Condition Data:     
General     
Total assets$2,259,250$2,234,617$2,210,116$2,204,809$2,176,468
Loans, net1,863,5861,855,0541,843,8051,828,3181,805,571
Goodwill16,45016,45016,45016,45016,450
Intangibles133158184210235
Total deposits1,700,3211,648,0931,618,5621,589,4931,567,267
Noninterest-bearing452,922461,092471,451471,173471,507
Savings211,560218,354220,932219,287226,897
NOW218,279209,906208,073214,888220,730
Money Market321,614320,101299,916299,353291,889
Time Deposits328,294310,187292,372260,067249,550
Brokered Deposits167,652128,453125,818124,725106,694
Total interest-bearing deposits1,247,3991,187,0011,147,1111,118,3201,095,760
Core deposits*1,204,3751,209,4531,200,3721,204,7011,211,023
Shareholders’ equity203,694197,087193,517191,556174,540
Asset Quality
Non-performing loans$7,940$6,784$7,958$3,148$3,683
Non-performing loans to total assets0.35 %0.30 %0.36 %0.14 %0.17 %
Allowance for credit losses on loans11,58811,23411,54211,44612,890
Allowance for credit losses on loans to total loans0.62 %0.60 %0.62 %0.62 %0.71 %
Allowance for credit losses on loans to non-performing loans145.94 %165.60 %145.04 %363.60 %349.99 %
Non-performing loans to total loans0.42 %0.36 %0.43 %0.17 %0.20 %
Capitalization
Shareholders’ equity to total assets9.02 %8.82 %8.76 %8.69 %8.02 %

* 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 September 30,Nine Months Ended September 30,
(Dollars in Thousands, Except Per Share Data, Unaudited)2024202320242023
GAAP net income$4,801$2,224$13,998$11,053
Net securities (gains) losses, net of tax(28)6413126
Non-GAAP core earnings$4,773$2,288$14,011$11,179
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Return on average assets (ROA)0.86 %0.41 %0.84 %0.70 %
Net securities (gains) losses, net of tax(0.01)%0.01 %— %0.01 %
Non-GAAP core ROA0.85 %0.42 %0.84 %0.71 %
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Return on average equity (ROE)9.60 %5.06 %9.74 %8.58 %
Net securities (gains) losses, net of tax(0.06)%0.14 %0.01 %0.09 %
Non-GAAP core ROE9.54 %5.20 %9.75 %8.67 %
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Basic earnings per share (EPS)$0.64$0.31$1.86$1.56
Net securities (gains) losses, net of tax(0.01)0.01—0.02
Non-GAAP basic core EPS$0.63$0.32$1.86$1.58
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Diluted EPS$0.64$0.31$1.86$1.53
Net securities (gains) losses, net of tax(0.01)0.01—0.02
Non-GAAP diluted core EPS$0.63$0.32$1.86$1.55
(Dollars in Thousands, Except Share and Per Share Data, Unaudited)Quarter Ended
9/30/20246/30/20243/31/202412/31/20239/30/2023
Total shareholders' equity$203,694 $197,087 $193,517 $191,556 $174,540 
Goodwill(16,450)(16,450)(16,450)(16,450)(16,450)
Intangibles(133)(158)(184)(210)(235)
Tangible shareholders' equity$187,111 $180,479 $176,883 $174,896 $157,855 
Shares outstanding7,554,488 7,541,474 7,525,372 7,508,994 7,110,025 
Book value per share$26.96 $26.13 $25.72 $25.51 $24.55 
Tangible book value per share (Non-GAAP)$24.77 $23.93 $23.50 $23.29 $22.20 




10
v3.24.3
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 Oct. 24, 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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