PWOD - Penns Woods Bancorp Inc. Reports Third Quarter 2019 Earnings

October, 24 2019 11:10 AM Penns Woods Bancorp Inc.

WILLIAMSPORT, Pa., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc., supported by deposit growth, achieved net income of $12.8 million for the nine months ended September 30, 2019, resulting in basic and diluted earnings per share of $1.82.

Highlights

Net income, as reported under GAAP, for the three and nine months ended September 30, 2019 was $4.7 million and $12.8 million, compared to $3.8 million and $10.5 million for the same periods of 2018. Results for the three and nine months ended September 30, 2019 compared to 2018 were impacted by an increase in after-tax securities gains of $153,000 (from a loss of $19,000 to a gain of $134,000) for the three month periods and $244,000 (from a loss of $39,000 to a gain of $205,000) for the nine month periods.
Basic and diluted earnings per share for the three and nine months ended September 30, 2019 were $0.66 and $1.82, respectively, an increase in basic and diluted earnings per share of $0.12 and $0.33 as compared to the three and nine months ended September 30, 2018.
Return on average assets was 1.10% for the three months ended September 30, 2019, compared to 0.96% for the corresponding period of 2018. Return on average assets was 1.02% for the nine months ended September 30, 2019, compared to 0.91% for the corresponding period of 2018.
Return on average equity was 12.18% for the three months ended September 30, 2019, compared to 10.94% for the corresponding period of 2018. Return on average equity was 11.69% for the nine months ended September 30, 2019, compared to 10.19% for the corresponding period of 2018.

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 $4.5 million for the three months ended September 30, 2019 compared to $3.8 million for the same period of 2018. Core earnings increased to $12.6 million for the nine months ended September 30, 2019, compared to $10.6 million for the same period of 2018. Core earnings per share for the three months ended September 30, 2019 was $0.64 basic and diluted, an increase from $0.54 basic and diluted core earnings per share for the same period of 2018. Core earnings per share for the nine months ended September 30, 2019 was $1.80 basic and diluted, compared to $1.50 basic and diluted for the same period of 2018. Core return on average assets and core return on average equity were 1.07% and 11.82% for the three months ended September 30, 2019, compared to 0.96% and 10.99% for the corresponding period of 2018. Core return on average assets and core return on average equity were 1.01% and 11.49% for the nine months ended September 30, 2019 compared to 0.91% and 10.23% for the corresponding period of 2018. 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 and nine months ended September 30, 2019 was 3.32% and 3.34%, compared to 3.30% and 3.31% for the corresponding periods of 2018. The increase in the net interest margin was driven by an increase in the yield on earning assets of 29 and 37 basis points ("bps") for the three and nine month periods. The impact of the increase in yield on earning assets was limited by the increase in rate paid on interest-bearing liabilities of 36 bps and 41 bps for the three and nine month periods. The increase in the yield on earning assets was driven by an increase in the loan portfolio yield in conjunction with an increase in the average loan portfolio of $31.3 million and $79.3 million, respectively. The loan growth for the three and nine month periods was primarily funded by an increase in average total interest-bearing deposits of $112.9 million and $98.2 million, respectively.

Assets

Total assets increased $2.7 million to $1.7 billion at September 30, 2019 compared to September 30, 2018. Net loans decreased $5.0 million to $1.4 billion at September 30, 2019 compared to September 30, 2018, as the municipal loan portfolio decreased and the indirect auto lending portfolio remained constant. The investment portfolio increased $15.8 million from September 30, 2018 to September 30, 2019 due to increases in the taxable municipal portfolio.

Non-performing Loans

The ratio of non-performing loans to total loans ratio increased to 1.26% at September 30, 2019 from 0.64% at September 30, 2018 as non-performing loans have increased to $17.2 million at September 30, 2019 from $8.7 million at September 30, 2018 primarily due to a commercial loan relationship that became non-performing during the fourth quarter of 2018. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $112,000 and $623,000 for the three and nine months ended September 30, 2019 minimally impacted the allowance for loan losses, which was 1.04% of total loans at September 30, 2019. The majority of the loans charged-off had a specific allowance within the allowance for loan losses.

Deposits

Deposits increased $121.9 million to $1.3 billion at September 30, 2019 compared to September 30, 2018. Noninterest-bearing deposits increased $14.2 million to $327.3 million at September 30, 2019 compared to September 30, 2018. Driving deposit growth is our commitment to easy-to-use products, community involvement, and emphasis on customer service. Deposit gathering efforts have centered on core deposits as building customer relationships remains the focus. The time deposit portfolio has increased as time deposits have been used as a customer attraction tool. The increase in deposits has resulted in a significant reduction in the use of short-term borrowings.

Shareholders’ Equity

Shareholders’ equity increased $14.5 million to $155.1 million at September 30, 2019 compared to September 30, 2018. The change in accumulated other comprehensive loss from $7.5 million at September 30, 2018 to $1.9 million at September 30, 2019 is a result of an increase in unrealized gains on available for sale securities (from an unrealized loss of $2.7 million at September 30, 2018 to an unrealized gain of $3.3 million at September 30, 2019). The amount of accumulated other comprehensive loss at September 30, 2019 was also impacted by the change in net excess of the projected benefit obligation over the fair value of the plan assets of the defined benefit pension plan, resulting in an increase in the net loss of $345,000. The current level of shareholders’ equity equates to a book value per share of $22.03 at September 30, 2019 compared to $19.97 at September 30, 2018, and an equity to asset ratio of 9.27% at September 30, 2019 compared to 8.41% at September 30, 2018. Dividends declared for the nine months ended September 30, 2019 and 2018 were $0.94 per share.

On September 30, 2019, the Company completed a three-for-two stock split (the “Stock Split”) of the Company’s common stock. As a result of the Stock Split, effective at 11:59 p.m. on September 30, 2019, each share of the Company’s common stock issued at that time was changed into one and one-half shares of the Company’s common stock with a stated par value of $5.55 per share. All share and per share amounts in this release, including in the accompanying financial statements and information, have been restated for all periods presented to give retroactive effect to the Stock Split.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, and Union Counties, and Luzerne Bank, which operates nine branch offices providing financial services in Luzerne County. Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group. Insurance products are offered through United Insurance Solutions, LLC, a joint venture that is a subsidiary of the holding company.

NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) 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, 2018.

You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.

Contact:

Richard A. Grafmyre, Chief Executive Officer

110 Reynolds Street

Williamsport, PA 17702

570-322-1111

e-mail: pwod@pwod.com

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)



September 30,
(In Thousands, Except Share Data)

2019

2018

% Change
ASSETS:






Noninterest-bearing balances

$
25,990


$
33,675


(22.82
)%
Interest-bearing balances in other financial institutions

31,351


38,672


(18.93
)%
Total cash and cash equivalents

57,341


72,347


(20.74
)%








Investment debt securities, available for sale, at fair value

149,075


128,905


15.65
%
Investment equity securities, at fair value

1,820


1,902


(4.31
)%
Investment securities, trading

47


45


4.44
%
Restricted investment in bank stock, at fair value

13,502


17,834


(24.29
)%
Loans held for sale

1,868


3,727


(49.88
)%
Loans

1,364,984


1,369,105


(0.30
)%
Allowance for loan losses

(14,249
)

(13,343
)

6.79
%
Loans, net

1,350,735


1,355,762


(0.37
)%
Premises and equipment, net

33,366


27,361


21.95
%
Accrued interest receivable

5,267


5,353


(1.61
)%
Bank-owned life insurance

29,107


28,472


2.23
%
Goodwill

17,104


17,104


—
%
Intangibles

960


1,233


(22.14
)%
Operating lease right of use asset

4,217


—


n/a

Deferred tax asset

3,744


5,310


(29.49
)%
Other assets

4,942


4,993


(1.02
)%
TOTAL ASSETS

$
1,673,095


$
1,670,348


0.16
%








LIABILITIES:







Interest-bearing deposits

$
1,005,078


$
897,366


12.00
%
Noninterest-bearing deposits

327,329


313,111


4.54
%
Total deposits

1,332,407


1,210,477


10.07
%








Short-term borrowings

5,987


164,465


(96.36
)%
Long-term borrowings

162,290


138,970


16.78
%
Accrued interest payable

1,666


1,051


58.52
%
Operating lease liability

4,228


—


n/a

Other liabilities

11,437


14,846


(22.96
)%
TOTAL LIABILITIES

1,518,015


1,529,809


(0.77
)%








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; 7,517,796 and 7,516,594 shares issued; 7,037,571 and 7,036,369 shares outstanding

41,777


41,757


0.05
%
Additional paid-in capital

51,290


50,577


1.41
%
Retained earnings

76,009


67,802


12.10
%
Accumulated other comprehensive loss:







Net unrealized gain (loss) on available for sale securities

3,266


(2,663
)

222.64
%
Defined benefit plan

(5,165
)

(4,820
)

(7.16
)%
Treasury stock at cost, 480,225

(12,115
)

(12,115
)

—
%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY

155,062


140,538


10.33
%
Non-controlling interest

18


1


1,700.00
%
TOTAL SHAREHOLDERS' EQUITY

155,080


140,539


10.35
%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$
1,673,095


$
1,670,348


0.16
%

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)



Three Months Ended September 30,

Nine Months Ended September 30,
(In Thousands, Except Per Share Data)

2019

2018

% Change

2019

2018

% Change
INTEREST AND DIVIDEND INCOME:












Loans including fees

$
15,426


$
13,982


10.33
%

$
45,595


$
39,172


16.40
%
Investment securities:














Taxable

998


713


39.97
%

2,899


1,898


52.74
%
Tax-exempt

167


207


(19.32
)%

520


678


(23.30
)%
Dividend and other interest income

493


296


66.55
%

1,345


762


76.51
%
TOTAL INTEREST AND DIVIDEND INCOME

17,084


15,198


12.41
%

50,359


42,510


18.46
%















INTEREST EXPENSE:














Deposits

3,165


1,659


90.78
%

8,336


4,371


90.71
%
Short-term borrowings

7


528


(98.67
)%

790


1,004


(21.31
)%
Long-term borrowings

1,009


756


33.47
%

2,739


2,024


35.33
%
TOTAL INTEREST EXPENSE

4,181


2,943


42.07
%

11,865


7,399


60.36
%















NET INTEREST INCOME

12,903


12,255


5.29
%

38,494


35,111


9.64
%















PROVISION FOR LOAN LOSSES

360


480


(25.00
)%

1,035


975


6.15
%















NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

12,543


11,775


6.52
%

37,459


34,136


9.73
%















NON-INTEREST INCOME:














Service charges

622


645


(3.57
)%

1,776


1,788


(0.67
)%
Debt securities gains (losses), available for sale

189


(22
)

959.09
%

200


(17
)

1,276.47
%
Equity securities (losses) gains

(21
)

(16
)

(31.25
)%

44


(44
)

200.00
%
Securities gains, trading

2


14


(85.71
)%

15


12


25.00
%
Bank-owned life insurance

143


165


(13.33
)%

434


496


(12.50
)%
Gain on sale of loans

583


398


46.48
%

1,246


1,053


18.33
%
Insurance commissions

93


85


9.41
%

346


266


30.08
%
Brokerage commissions

353


340


3.82
%

1,032


1,013


1.88
%
Debit card income

333


359


(7.24
)%

1,032


1,065


(3.10
)%
Other

525


621


(15.46
)%

1,420


1,400


1.43
%
TOTAL NON-INTEREST INCOME

2,822


2,589


9.00
%

7,545


7,032


7.30
%















NON-INTEREST EXPENSE:














Salaries and employee benefits

5,488


5,420


1.25
%

16,512


15,387


7.31
%
Occupancy

638


640


(0.31
)%

2,085


2,080


0.24
%
Furniture and equipment

885


780


13.46
%

2,421


2,328


3.99
%
Software amortization

234


208


12.50
%

629


504


24.80
%
Pennsylvania shares tax

285


278


2.52
%

863


833


3.60
%
Professional fees

585


459


27.45
%

1,834


1,674


9.56
%
Federal Deposit Insurance Corporation deposit insurance

—


237


(100.00
)%

504


639


(21.13
)%
Marketing

98


245


(60.00
)%

233


764


(69.50
)%
Intangible amortization

62


71


(12.68
)%

202


229


(11.79
)%
Other

1,266


1,343


(5.73
)%

4,131


4,037


2.33
%
TOTAL NON-INTEREST EXPENSE

9,541


9,681


(1.45
)%

29,414


28,475


3.30
%
INCOME BEFORE INCOME TAX PROVISION

5,824


4,683


24.36
%

15,590


12,693


22.82
%
INCOME TAX PROVISION

1,170


857


36.52
%

2,741


2,179


25.79
%
NET INCOME

$
4,654


$
3,826


21.64
%

$
12,849


$
10,514


22.21
%
Earnings attributable to noncontrolling interest

4


—


n/a


10


(1
)

(1,100.00
)%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'

$
4,650


$
3,826


21.54
%

$
12,839


$
10,515


22.10
%
EARNINGS PER SHARE - BASIC

$
0.66


$
0.54


22.22
%

$
1.82


$
1.49


22.15
%
EARNINGS PER SHARE - DILUTED

$
0.66


$
0.54


22.22
%

$
1.82


$
1.49


22.15
%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC

7,037,055


7,035,840


0.02
%

7,036,181


7,034,940


0.02
%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED

7,037,055


7,035,840


0.02
%

7,036,181


7,034,940


0.02
%
DIVIDENDS DECLARED PER SHARE

$
0.31


$
0.31


—
%

$
0.94


$
0.94


—
%



Three Months Ended


September 30, 2019

September 30, 2018
(Dollars in Thousands)

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate
ASSETS:












Tax-exempt loans

$
66,617


$
505


3.04
%

$
75,182


$
559


2.95
%
All other loans

1,317,964


15,027


4.57
%

1,278,149


13,541


4.20
%
Total loans

1,384,581


15,532


4.50
%

1,353,331


14,100


4.13
%















Taxable securities

137,394


1,284


3.79
%

104,321


991


3.80
%
Tax-exempt securities

25,769


211


3.32
%

34,444


262


3.04
%
Total securities

163,163


1,495


3.72
%

138,765


1,253


3.61
%















Interest-bearing deposits

36,853


207


2.25
%

3,403


18


2.10
%















Total interest-earning assets

1,584,597


17,234


4.37
%

1,495,499


15,371


4.08
%















Other assets

101,318







99,132





















TOTAL ASSETS

$
1,685,915







$
1,594,631





















LIABILITIES AND SHAREHOLDERS’ EQUITY:














Savings

$
169,628


66


0.16
%

$
166,181


17


0.04
%
Super Now deposits

232,918


481


0.83
%

225,677


264


0.46
%
Money market deposits

237,362


581


0.98
%

241,977


314


0.51
%
Time deposits

370,229


2,037


2.21
%

263,399


1,064


1.60
%
Total interest-bearing deposits

1,010,137


3,165


1.26
%

897,234


1,659


0.73
%















Short-term borrowings

7,990


7


0.35
%

99,867


528


2.07
%
Long-term borrowings

169,017


1,009


2.26
%

134,731


756


2.19
%
Total borrowings

177,007


1,016


2.18
%

234,598


1,284


2.14
%















Total interest-bearing liabilities

1,187,144


4,181


1.39
%

1,131,832


2,943


1.03
%















Demand deposits

324,940







305,707






Other liabilities

21,151







17,156






Shareholders’ equity

152,680







139,936





















TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$
1,685,915







$
1,594,631






Interest rate spread





2.98
%





3.05
%
Net interest income/margin



$
13,053


3.32
%



$
12,428


3.30
%



Three Months Ended September 30,


2019

2018
Total interest income

$
17,084


$
15,198

Total interest expense

4,181


2,943

Net interest income

12,903


12,255

Tax equivalent adjustment

150


173

Net interest income (fully taxable equivalent)

$
13,053


$
12,428

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES



Nine Months Ended


September 30, 2019

September 30, 2018
(Dollars in Thousands)

Average Balance

Interest

Average Rate

Average Balance

Interest

Average Rate
ASSETS:












Tax-exempt loans

$
69,973


$
1,592


3.04
%

$
75,389


$
1,689


2.99
%
All other loans

1,315,022


44,337


4.51
%

1,230,313


37,838


4.11
%
Total loans

1,384,995


45,929


4.43
%

1,305,702


39,527


4.05
%















Taxable securities

131,451


3,934


4.05
%

93,944


2,621


3.72
%
Tax-exempt securities

26,813


658


3.32
%

38,940


858


2.94
%
Total securities

158,264


4,592


3.92
%

132,884


3,479


3.49
%















Interest-bearing deposits

18,050


310


2.30
%

2,872


39


1.82
%















Total interest-earning assets

1,561,309


50,831


4.36
%

1,441,458


43,045


3.99
%















Other assets

109,278







97,930





















TOTAL ASSETS

$
1,670,587







$
1,539,388





















LIABILITIES AND SHAREHOLDERS’ EQUITY:














Savings

$
168,909


147


0.12
%

$
164,828


49


0.04
%
Super Now deposits

236,965


1,313


0.74
%

229,159


713


0.42
%
Money market deposits

242,630


1,649


0.91
%

240,751


814


0.45
%
Time deposits

335,456


5,227


2.08
%

251,071


2,795


1.49
%
Total interest-bearing deposits

983,960


8,336


1.13
%

885,809


4,371


0.66
%















Short-term borrowings

45,046


790


2.34
%

72,873


1,004


1.82
%
Long-term borrowings

153,684


2,739


2.24
%

124,483


2,024


2.14
%
Total borrowings

198,730


3,529


2.26
%

197,356


3,028


2.02
%















Total interest-bearing liabilities

1,182,690


11,865


1.32
%

1,083,165


7,399


0.91
%















Demand deposits

318,602







300,604






Other liabilities

22,705







18,070






Shareholders’ equity

146,590







137,549





















TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$
1,670,587







$
1,539,388






Interest rate spread





3.04
%





3.08
%
Net interest income/margin



$
38,966


3.34
%



$
35,646


3.31
%



Nine Months Ended September 30,


2019

2018
Total interest income

$
50,359


$
42,510

Total interest expense

11,865


7,399

Net interest income

38,494


35,111

Tax equivalent adjustment

472


535

Net interest income (fully taxable equivalent)

$
38,966


$
35,646

(Dollars in Thousands, Except Per Share Data)

Quarter Ended


9/30/2019

6/30/2019

3/31/2019

12/31/2018

9/30/2018
Operating Data










Net income

$
4,650


$
4,245


$
3,944


$
4,189


$
3,826

Net interest income

12,903


12,913


12,678


12,699


12,255

Provision for loan losses

360


315


360


760


480

Net security gains (losses)

170


23


66


(165
)

(24
)
Non-interest income, ex. net security gains (losses)

2,652


2,446


2,188


2,594


2,613

Non-interest expense

9,541


10,059


9,814


9,532


9,681












Performance Statistics










Net interest margin

3.32
%

3.39
%

3.37
%

3.33
%

3.30
%
Annualized return on average assets

1.10
%

1.02
%

0.95
%

1.02
%

0.96
%
Annualized return on average equity

12.18
%

11.42
%

10.93
%

11.77
%

10.94
%
Annualized net loan charge-offs to average loans

0.03
%

0.03
%

0.12
%

0.08
%

0.05
%
Net charge-offs

112


106


405


266


171

Efficiency ratio

61.0
%

65.0
%

65.5
%

61.9
%

64.6
%





















Per Share Data




















Basic earnings per share

$
0.66


$
0.61


$
0.56


$
0.59


$
0.55

Diluted earnings per share

0.66


0.61


0.56


0.59


0.55

Dividend declared per share

0.31


0.31


0.31


0.31


0.31

Book value

22.03


21.53


20.89


20.39


19.97

Common stock price:










High

30.93


30.17


29.67


29.45


30.85

Low

26.87


26.03


23.23


25.77


28.81

Close

30.83


30.17


27.40


26.83


28.97

Weighted average common shares:










Basic

7,037


7,038


7,038


7,037


7,037

Fully Diluted

7,037


7,038


7,038


7,037


7,037

End-of-period common shares:










Issued

7,518


7,518


7,518


7,518


7,517

Treasury

480


480


480


480


480

(Dollars in Thousands, Except Per Share Data)

Quarter Ended


9/30/2019

6/30/2019

3/31/2019

12/31/2018

9/30/2018
Financial Condition Data:










General










Total assets

$
1,673,095


$
1,711,500


$
1,704,708


$
1,684,771


$
1,670,348

Loans, net

1,350,735


1,365,284


1,370,678


1,370,920


1,355,762

Goodwill

17,104


17,104


17,104


17,104


17,104

Intangibles

960


1,022


1,091


1,162


1,233

Total deposits

1,332,407


1,327,086


1,309,061


1,219,903


1,210,477

Noninterest-bearing

327,329


322,755


321,657


320,814


313,111

Savings

171,370


171,992


170,005


166,063


164,449

NOW

219,466


238,410


253,475


207,819


223,963

Money Market

239,926


238,352


244,753


238,596


238,131

Time Deposits

374,316


355,577


319,171


286,611


270,823

Total interest-bearing deposits

1,005,078


1,004,331


987,404


899,089


897,366












Core deposits*

958,091


971,509


989,890


933,292


939,654

Shareholders’ equity

155,062


151,527


147,026


143,536


140,538












Asset Quality










Non-performing loans

$
17,208


$
15,383


$
15,794


$
16,572


$
8,739

Non-performing loans to total assets

1.03
%

0.90
%

0.93
%

0.98
%

0.52
%
Allowance for loan losses

14,249


14,001


13,792


13,837


13,343

Allowance for loan losses to total loans

1.04
%

1.02
%

1.00
%

1.00
%

0.97
%
Allowance for loan losses to non-performing loans

82.80
%

91.02
%

87.32
%

83.50
%

152.68
%
Non-performing loans to total loans

1.26
%

1.12
%

1.14
%

1.20
%

0.64
%





















Capitalization




















Shareholders’ equity to total assets

9.27
%

8.85
%

8.62
%

8.52
%

8.41
%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures



Three Months Ended September 30,

Nine Months Ended September 30,
(Dollars in Thousands, Except Per Share Data)

2019

2018

2019

2018
GAAP net income

$
4,650


$
3,826


$
12,839


$
10,515

Less: net securities gains (losses), net of tax

134


(19
)

205


(39
)
Non-GAAP core earnings

$
4,516


$
3,845


$
12,634


$
10,554












Three Months Ended September 30,

Nine Months Ended September 30,


2019

2018

2019

2018
Return on average assets (ROA)

1.10
%

0.96
%

1.02
%

0.91
%
Less: net securities gains (losses), net of tax

0.03
%

—
%

0.01
%

—
%
Non-GAAP core ROA

1.07
%

0.96
%

1.01
%

0.91
%











Three Months Ended September 30,

Nine Months Ended September 30,


2019

2018

2019

2018
Return on average equity (ROE)

12.18
%

10.94
%

11.69
%

10.19
%
Less: net securities gains (losses), net of tax

0.36
%

(0.05
)%

0.20
%

(0.04
)%
Non-GAAP core ROE

11.82
%

10.99
%

11.49
%

10.23
%











Three Months Ended September 30,

Nine Months Ended September 30,


2019

2018

2019

2018
Basic earnings per share (EPS)

$
0.66


$
0.54


$
1.82


$
1.49

Less: net securities gains (losses), net of tax

0.02


—


0.02


(0.01
)
Non-GAAP basic core EPS

$
0.64


$
0.54


$
1.80


$
1.50








Three Months Ended September 30,

Nine Months Ended September 30,


2019

2018

2019

2018
Diluted EPS

$
0.66


$
0.54


$
1.82


$
1.49

Less: net securities gains (losses), net of tax

0.02


—


0.02


(0.01
)
Non-GAAP diluted core EPS

$
0.64


$
0.54


$
1.80


$
1.50

Company Name:	Penns Woods Bancorp Inc.
Stock Symbol:	PWOD
Market:	NASDAQ
Website:	pwod.com

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