Penns Woods Bancorp's (PWOD) loan portfolio declined once again in the third quarter. Based on a bleak outlook, the loan book is expected to continue to decline next year, which will lead to a decrease in earnings. NIM compression is expected to further pressurize earnings next year.
Loans Likely to Continue to Decline
PWOD's net loans decreased in the third quarter due to a decline in the municipal loan portfolio. The loan portfolio has declined for the last three quarters on linked quarter basis, which signals deep-rooted issues in PWOD's market. Going forward,