Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

WILLIAMSPORT, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ: PWOD) Penns Woods Bancorp, Inc. achieved net income of $17.7 million for the twelve months ended December 31, 2024, resulting in basic and diluted earnings per share of $2.35. Highlights Net income, as reported under generally accepted accounting principles (GAAP), for the three and twelve months ended December 31, 2024 was $3.7 million and $17.7 million, respectively, compared to $5.6 million and $16.6 million for the same periods of 2023. Results for the three and twelve months ended December 31, 2024 compared to 2023 were impacted by an increase in net interest income of $1.6 million and $3.9 million, respectively, as the cost of funds stabilized. The three and twelve month periods ended December 31, 2024 have been impacted by after-tax merger related expenses of $581,000 resulting from the announced acquisition of the company by Northwest Bancshares, Inc. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the twelve month period ended December 31, 2024.The allowance for credit losses was impacted for the three and twelve months ended December 31, 2024 by a provision for credit losses of $420,000 and $121,000, respectively, compared to a negative provision for credit losses of $1.7 million and $1.5 million for the 2023 periods. The recognition of a negative provision for credit losses for the 2023 periods was due primarily to a recovery on a commercial loan which positively affected the historical loss rates, and the payoff of a nonperforming commercial loan.Basic and diluted earnings per share for the three months ended December 31, 2024 were $0.50 and $0.49, respectively, while the twelve months ended December 31, 2024 basic and diluted was $2.35. This compares to basic and diluted earnings per share of $0.77 and $2.34, respectively, for the three and twelve month periods ended December 31, 2023. Annualized return on average assets was 0.67% for the three months ended December 31, 2024, compared to 1.02% for the corresponding period of 2023. Return on average assets was 0.80% for the twelve months ended December 31, 2024, compared to 0.79% for the corresponding period of 2023.Annualized return on average equity was 7.28% for the three months ended December 31, 2024, compared to 12.60% for the corresponding period of 2023. Return on average equity was 9.14% for the twelve months ended December 31, 2024, compared to 9.84% 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 $4.4 million and $18.4 million, respectively, for the three and twelve months ended December 31, 2024 compared to $5.6 million and $16.7 million for the same periods of 2023. Core earnings per share (non-GAAP) for the three months ended December 31, 2024 were basic $0.58 and diluted $0.57 while basic and diluted for the twelve months ended December 31, 2024 were $2.44. Basic and diluted core earnings per share for the three and twelve month periods of 2023 were $0.77 and $2.36, respectively. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.78% and 8.48%, respectively, for the three months ended December 31, 2024, compared to 1.02% and 12.63% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.83% and 9.46%, respectively, for the twelve months ended December 31, 2024, compared to 0.79% and 9.93% 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 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 twelve months ended December 31, 2024 was 2.98% and 2.83% respectively, compared to 2.73% and 2.80% 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 collected on interest-earning assets of 34 basis points ("bps"), while the decrease in the net interest margin for the twelve month period was driven by a 74 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 $47.4 million and $106.9 million, respectively, for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 31 bps and 61 bps, resulting in an increase in taxable equivalent interest income of $2.0 million and $16.5 million, for the periods. The three and twelve month periods ended December 31, 2024 were impacted by an increase of 57 bps and 66 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 $285,000 and $1.5 million, respectively. Short-term borrowings decreased leading to a decrease of $1.8 million and $3.9 million, respectively, in expense for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 37 bps and 96 bps, respectively, or $2.1 million and $13.8 million in expense, for the three and twelve month periods ended December 31, 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 twelve month periods ended December 31, 2024 compared to the same periods of 2023 increased 29 bps and 87 bps, respectively, or $1.7 million and $9.9 million in expense, as deposit gathering campaigns continued to focus on time deposits with a maturity of five to twenty-four 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 $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023. Net loans increased $36.9 million to $1.9 billion at December 31, 2024 compared to December 31, 2023, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $10.7 million from December 31, 2023 to December 31, 2024. Non-performing Loans The ratio of non-performing loans to total loans ratio increased to 0.47% at December 31, 2024 from 0.17% at December 31, 2023, as non-performing loans increased to $8.9 million at December 31, 2024 from $3.1 million at December 31, 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 $228,000 and $540,000 for the three and twelve months ended December 31, 2024, respectively, impacted the allowance for credit losses, which was 0.63% of total loans at December 31, 2024 compared to 0.62% at December 31, 2023. Exposure to non-owner occupied office space is minimal at $14.1 million at December 31, 2024 with none of these loans being delinquent. Deposits Deposits increased $116.6 million to $1.7 billion at December 31, 2024 compared to December 31, 2023. Noninterest-bearing deposits decreased $14.2 million to $456.9 million at December 31, 2024 compared to December 31, 2023. Core deposits declined $17.8 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 $130.8 million from December 31, 2023 to December 31, 2024 due to growth in the time deposit portfolio of $80.8 million as customers sought a higher rate of interest. Brokered deposit balances increased $53.6 million to $178.3 million at December 31, 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. Shareholders’ Equity Shareholders’ equity increased $13.7 million to $205.2 million at December 31, 2024 compared to December 31, 2023. During the three and twelve months ended December 31, 2024 there were no shares issued under the previously disclosed registered at-the-market offering. A total 31,066 shares for net proceeds of $632,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2024. Accumulated other comprehensive loss of $5.3 million at December 31, 2024 decreased from a loss of $9.2 million at December 31, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $4.6 million at December 31, 2024 from a net unrealized loss of $6.4 million at December 31, 2023, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.16 at December 31, 2024 compared to $25.51 at December 31, 2023, and an equity to asset ratio of 9.19% at December 31, 2024 and 8.69% at December 31, 2023. Tangible book value per share (a non-GAAP measure) increased to $24.97 at December 31, 2024 compared to $23.29 at December 31, 2023. Dividends declared for the three and twelve months ended December 31, 2024 and 2023 were $0.32 and $1.28 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; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing. 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 PENNS WOODS BANCORP, INC.CONSOLIDATED BALANCE SHEET(UNAUDITED) December 31,(In Thousands, Except Share and Per Share Data) 2024 2023 % ChangeASSETS: Noninterest-bearing cash $ 19,989 $ 28,969 (31.00)%Interest-bearing balances in other financial institutions 8,983 8,493 5.77 %Total cash and cash equivalents 28,972 37,462 (22.66)% Investment debt securities, available for sale, at fair value 184,542 190,945 (3.35)%Investment equity securities, at fair value 1,111 1,122 (0.98)%Restricted investment in bank stock 20,032 24,323 (17.64)%Loans held for sale 3,266 3,993 (18.21)%Loans 1,877,078 1,839,764 2.03 %Allowance for credit losses (11,848) (11,446) 3.51 %Loans, net 1,865,230 1,828,318 2.02 %Premises and equipment, net 27,789 30,250 (8.14)%Accrued interest receivable 11,114 11,044 0.63 %Bank-owned life insurance 45,681 33,867 34.88 %Investment in limited partnerships 6,691 7,815 (14.38)%Goodwill 16,450 16,450 — %Intangibles 107 210 (49.05)% Operating lease right of use asset 2,811 2,512 11.90 %Deferred tax asset 3,493 4,655 (24.96)%Other assets 15,049 11,843 27.07 %TOTAL ASSETS $ 2,232,338 $ 2,204,809 1.25 % LIABILITIES: Interest-bearing deposits $ 1,249,145 $ 1,118,320 11.70 %Noninterest-bearing deposits 456,936 471,173 (3.02)%Total deposits 1,706,081 1,589,493 7.33 % %Short-term borrowings 42,200 145,926 (71.08)%Long-term borrowings 254,588 252,598 0.79 %Accrued interest payable 4,664 3,814 22.29 %Operating lease liability 2,889 2,570 12.41 %Other liabilities 16,685 18,852 (11.49)%TOTAL LIABILITIES 2,027,107 2,013,253 0.69 % SHAREHOLDERS’ EQUITY: Preferred stock, no par value, 3,000,000 shares authorized; no shares issued — — n/aCommon stock, par value $5.55, 22,500,000 shares authorized; 8,066,968 and 8,019,219 shares issued; 7,556,743 and 7,508,994 shares outstanding 44,815 44,550 0.59 %Additional paid-in capital 63,193 61,733 2.37 %Retained earnings 115,331 107,238 7.55 %Accumulated other comprehensive loss: Net unrealized loss on available for sale securities (4,567) (6,396) 28.60 %Defined benefit plan (726) (2,754) 73.64 %Treasury stock at cost, 510,225 shares (12,815) (12,815) — %TOTAL SHAREHOLDERS' EQUITY 205,231 191,556 7.14 %TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,232,338 $ 2,204,809 1.25 % PENNS WOODS BANCORP, INC.CONSOLIDATED STATEMENT OF INCOME(UNAUDITED) Three Months Ended December 31, Twelve Months Ended December 31,(In Thousands, Except Share and Per Share Data) 2024 2023 % Change 2024 2023 % ChangeINTEREST AND DIVIDEND INCOME: Loans including fees $ 25,759 $ 23,720 8.60 % $ 99,780 $ 83,291 19.80 %Investment securities: Taxable 1,826 1,476 23.71 % 7,039 5,346 31.67 %Tax-exempt 59 107 (44.86)% 292 517 (43.52)%Dividend and other interest income 607 614 (1.14)% 2,587 2,441 5.98 %TOTAL INTEREST AND DIVIDEND INCOME 28,251 25,917 9.01 % 109,698 91,595 19.76 % INTEREST EXPENSE: Deposits 9,523 7,445 27.91 % 35,962 22,131 62.50 %Short-term borrowings 479 2,317 (79.33)% 4,503 8,401 (46.40)%Long-term borrowings 2,686 2,207 21.70 % 10,353 6,099 69.75 %TOTAL INTEREST EXPENSE 12,688 11,969 6.01 % 50,818 36,631 38.73 % NET INTEREST INCOME 15,563 13,948 11.58 % 58,880 54,964 7.12 % PROVISION (RECOVERY) FOR CREDIT LOSSES 420 (1,742) 124.11 % 121 (1,479) 108.18 % NET INTEREST INCOME AFTER PROVISION (RECOVERY) OF CREDIT LOSSES 15,143 15,690 (3.49)% 58,759 56,443 4.10 % NON-INTEREST INCOME: Service charges 516 533 (3.19)% 2,067 2,090 (1.10)%Net debt securities losses, available for sale (9) (68) 86.76 % (49) (193) 74.61 %Net equity securities (losses) gains (35) 50 (170.00)% (11) 15 (173.33)%Bank-owned life insurance 303 171 77.19 % 1,159 1,063 9.03 %Gain on sale of loans 463 314 47.45 %. 1,484 1,046 41.87 %Insurance commissions 128 113 13.27 % 553 529 4.54 %Brokerage commissions 163 127 28.35 % 684 575 18.96 %Loan broker income 543 264 105.68 % 1,384 992 39.52 %Debit card income 385 333 15.62 % 1,437 1,328 8.21 %Other 253 384 (34.11)% 910 930 (2.15)%TOTAL NON-INTEREST INCOME 2,710 2,221 22.02 % 9,618 8,375 14.84 % NON-INTEREST EXPENSE: Salaries and employee benefits 7,032 6,284 11.90 % 26,256 25,062 4.76 %Occupancy 758 746 1.61 % 3,152 3,168 (0.51)%Furniture and equipment 1,233 889 38.70 % 3,669 3,392 8.17 %Software amortization 339 250 35.60 % 996 843 18.15 %Pennsylvania shares tax 351 275 27.64 % 1,373 1,082 26.89 %Professional fees 523 640 (18.28)% 2,177 2,953 (26.28)%Federal Deposit Insurance Corporation deposit insurance 385 456 (15.57)% 1,564 1,578 (0.89)%Marketing 74 90 (17.78)% 283 684 (58.63)%Intangible amortization 25 25 — % 102 117 (12.82)%Merger expense 735 — n/a 735 — n/aOther 1,525 1,342 13.64 % 6,177 5,617 9.97 %TOTAL NON-INTEREST EXPENSE 12,980 10,997 18.03 % 46,484 44,496 4.47 %INCOME BEFORE INCOME TAX PROVISION 4,873 6,914 (29.52)% 21,893 20,322 7.73 %INCOME TAX PROVISION 1,132 1,359 (16.70)% 4,154 3,714 11.85 %NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $ 3,741 $ 5,555 (32.66)% $ 17,739 $ 16,608 6.81 %EARNINGS PER SHARE - BASIC $ 0.50 $ 0.77 (35.06)% $ 2.35 $ 2.34 0.43 %EARNINGS PER SHARE - DILUTED $ 0.49 $ 0.77 (36.36)% $ 2.35 $ 2.34 0.43 %WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 7,555,168 7,255,222 4.13 % 7,535,397 7,112,450 5.95 %WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 7,693,185 7,255,222 6.04 % 7,543,111 7,112,450 6.06 % PENNS WOODS BANCORP, INC.AVERAGE BALANCES AND INTEREST RATES (UNAUDITED) Three Months Ended December 31, 2024 December 31, 2023(Dollars in Thousands) Average Balance (1) Interest Average Rate Average Balance (1) Interest Average RateASSETS: Tax-exempt loans (3) $ 69,967 $ 453 2.58 % $ 68,234 $ 478 2.78 %All other loans 1,806,212 25,401 5.59 % 1,760,509 23,342 5.26 %Total loans (2) 1,876,179 25,854 5.48 % 1,828,743 23,820 5.17 % Taxable securities 199,868 2,277 4.63 % 193,744 1,932 4.04 %Tax-exempt securities (3) 11,317 75 2.70 % 18,041 135 3.03 %Total securities 211,185 2,352 4.53 % 211,785 2,067 3.96 % Interest-bearing balances in other financial institutions 13,136 156 4.72 % 11,795 158 5.31 % Total interest-earning assets 2,100,500 28,362 5.38 % 2,052,323 26,045 5.04 % Other assets 137,840 130,421 TOTAL ASSETS $ 2,238,340 $ 2,182,744 LIABILITIES AND SHAREHOLDERS’ EQUITY: Savings $ 209,300 266 0.51 % $ 222,740 229 0.41 %Super Now deposits 220,792 1,070 1.93 % 227,113 1,129 1.97 %Money market deposits 323,181 2,656 3.27 % 293,542 2,217 3.00 %Time deposits 504,683 5,531 4.36 % 377,516 3,870 4.07 %Total interest-bearing deposits 1,257,956 9,523 3.01 % 1,120,911 7,445 2.64 % Short-term borrowings 38,495 479 4.96 % 163,088 2,317 5.63 %Long-term borrowings 256,521 2,686 4.17 % 235,998 2,207 3.71 %Total borrowings 295,016 3,165 4.27 % 399,086 4,524 4.50 % Total interest-bearing liabilities 1,552,972 12,688 3.25 % 1,519,997 11,969 3.12 % Demand deposits 454,612 457,546 Other liabilities 25,218 28,786 Shareholders’ equity 205,538 176,415 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,238,340 $ 2,182,744 Interest rate spread (3) 2.13 % 1.92 %Net interest income/margin (3) $ 15,674 2.98 % $ 14,076 2.73 % 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 December 31, 2024 2023 Total interest income $ 28,251 $ 25,917 Total interest expense 12,688 11,969 Net interest income (GAAP) 15,563 13,948 Tax equivalent adjustment 111 128 Net interest income (fully taxable equivalent) (non-GAAP) $ 15,674 $ 14,076 PENNS WOODS BANCORP, INC.AVERAGE BALANCES AND INTEREST RATES (UNAUDITED) Twelve Months Ended December 31, 2024 December 31, 2023(Dollars in Thousands) Average Balance (1) Interest Average Rate Average Balance (1) Interest Average RateASSETS: Tax-exempt loans (3) $ 69,448 $ 1,943 2.80 % $ 66,863 $ 1,849 2.77 %All other loans 1,796,096 98,245 5.47 % 1,691,742 81,830 4.84 %Total loans (2) 1,865,544 100,188 5.37 % 1,758,605 83,679 4.76 % Taxable securities 202,934 9,072 4.47 % 189,804 7,263 3.83 %Tax-exempt securities (3) 13,045 370 2.84 % 23,872 654 2.74 %Total securities 215,979 9,442 4.37 % 213,676 7,917 3.71 % Interest-bearing balances in other financial institutions 11,074 554 5.00 % 10,916 524 4.80 % Total interest-earning assets 2,092,597 110,184 5.27 % 1,983,197 92,120 4.65 % Other assets 132,720 131,704 TOTAL ASSETS $ 2,225,317 $ 2,114,901 LIABILITIES AND SHAREHOLDERS’ EQUITY: Savings $ 215,107 1,077 0.50 % $ 231,000 685 0.30 %Super Now deposits 218,932 4,373 2.00 % 276,868 4,155 1.50 %Money market deposits 311,836 10,390 3.33 % 292,755 7,024 2.40 %Time deposits 460,869 20,122 4.37 % 293,252 10,267 3.50 %Total interest-bearing deposits 1,206,744 35,962 2.98 % 1,093,875 22,131 2.02 % Short-term borrowings 82,046 4,503 5.49 % 157,140 8,401 5.36 %Long-term borrowings 256,850 10,353 4.03 % 186,094 6,099 3.28 %Total borrowings 338,896 14,856 4.40 % 343,234 14,500 4.23 % Total interest-bearing liabilities 1,545,640 50,818 3.29 % 1,437,109 36,631 2.55 % Demand deposits 454,878 477,828 Other liabilities 30,680 31,243 Shareholders’ equity 194,119 168,721 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,225,317 $ 2,114,901 Interest rate spread (3) 1.98 % 2.10 %Net interest income/margin (3) $ 59,366 2.83 % $ 55,489 2.80 % 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%. Twelve months ended December 31, 2024 2023 Total interest income $ 109,698 $ 91,595 Total interest expense 50,818 36,631 Net interest income (GAAP) 58,880 54,964 Tax equivalent adjustment 486 525 Net interest income (fully taxable equivalent) (non-GAAP) $ 59,366 $ 55,489 (Dollars in Thousands, Except Per Share Data, Unaudited) Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Operating Data Net income $ 3,741 $ 4,801 $ 5,390 $ 3,808 $ 5,555 Net interest income 15,563 15,056 14,515 13,746 13,948 Provision (recovery) for credit losses 420 740 (1,177) 138 (1,742) Net security (losses) gains (44) 36 (19) (33) (18) Non-interest income, excluding net security (losses) gains 2,754 2,385 2,044 2,495 2,239 Non-interest expense 12,980 10,884 10,996 11,623 10,997 Performance Statistics Net interest margin 2.98 % 2.88 % 2.83 % 2.69 % 2.73 %Annualized cost of total deposits 2.22 % 2.27 % 2.14 % 2.01 % 1.89 %Annualized non-interest income to average assets 0.48 % 0.43 % 0.37 % 0.45 % 0.41 %Annualized non-interest expense to average assets 2.32 % 1.95 % 1.98 % 2.10 % 2.02 %Annualized return on average assets 0.67 % 0.86 % 0.97 % 0.69 % 1.02 %Annualized return on average equity 7.28 % 9.60 % 11.12 % 8.03 % 12.60 %Annualized net loan charge-offs (recoveries) to average loans 0.05 % 0.07 % (0.09)% 0.08 % (0.05)%Net charge-offs (recoveries) 228 328 (396) 380 (209) Efficiency ratio 70.73 % 62.26 % 66.25 % 71.41 % 67.78 % Per Share Data Basic earnings per share $ 0.50 $ 0.64 $ 0.72 $ 0.51 $ 0.77 Diluted earnings per share 0.49 0.64 0.72 0.51 0.77 Dividend declared per share 0.32 0.32 0.32 0.32 0.32 Book value 27.16 26.96 26.13 25.72 25.51 Tangible book value (Non-GAAP) 24.97 24.77 23.93 23.50 23.29 Common stock price: High 34.06 23.98 21.08 22.64 23.64 Low 23.74 19.29 17.17 18.44 20.05 Close 30.39 23.79 20.55 19.41 22.51 Weighted average common shares: Basic 7,555 7,544 7,529 7,513 7,255 Fully Diluted 7,693 7,544 7,529 7,513 7,255 End-of-period common shares: Issued 8,067 8,065 8,052 8,036 8,019 Treasury (510) (510) (510) (510) (510) (Dollars in Thousands, Unaudited) Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Financial Condition Data: General Total assets $ 2,232,338 $ 2,259,250 $ 2,234,617 $ 2,210,116 $ 2,204,809 Loans, net 1,865,230 1,863,586 1,855,054 1,843,805 1,828,318 Goodwill 16,450 16,450 16,450 16,450 16,450 Intangibles 107 133 158 184 210 Total deposits 1,706,081 1,700,321 1,648,093 1,618,562 1,589,493 Noninterest-bearing 456,936 452,922 461,092 471,451 471,173 Savings 208,340 211,560 218,354 220,932 219,287 NOW 212,687 218,279 209,906 208,073 214,888 Money Market 308,977 321,614 320,101 299,916 299,353 Time Deposits 340,844 328,294 310,187 292,372 260,067 Brokered Deposits 178,297 167,652 128,453 125,818 124,725 Total interest-bearing deposits 1,249,145 1,247,399 1,187,001 1,147,111 1,118,320 Core deposits* 1,186,940 1,204,375 1,209,453 1,200,372 1,204,701 Shareholders’ equity 205,231 203,694 197,087 193,517 191,556 Asset Quality Non-performing loans $ 8,904 $ 7,940 $ 6,784 $ 7,958 $ 3,148 Non-performing loans to total assets 0.40 % 0.35 % 0.30 % 0.36 % 0.14 %Allowance for credit losses on loans 11,848 11,588 11,234 11,542 11,446 Allowance for credit losses on loans to total loans 0.63 % 0.62 % 0.60 % 0.62 % 0.62 %Allowance for credit losses on loans to non-performing loans 133.06 % 145.94 % 165.60 % 145.04 % 363.60 %Non-performing loans to total loans 0.47 % 0.42 % 0.36 % 0.43 % 0.17 % Capitalization Shareholders’ equity to total assets 9.19 % 9.02 % 8.82 % 8.76 % 8.69 % * Core deposits are defined as total deposits less time deposits and brokered deposits. Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED) Three Months Ended December 31, Twelve Months Ended December 31,(Dollars in Thousands, Except Per Share Data, Unaudited) 2024 2023 2024 2023GAAP net income $ 3,741 $ 5,555 $ 17,739 $ 16,608 Net securities losses, net of tax 35 14 47 141 Merger expenses, net of tax 581 — 581 — Non-GAAP core earnings $ 4,357 $ 5,569 $ 18,367 $ 16,749 Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Return on average assets (ROA) 0.67 % 1.02 % 0.80 % 0.79 %Net securities losses, net of tax 0.01 % — % — % — %Merger expenses, net of tax 0.10 % — % 0.03 % — %Non-GAAP core ROA 0.78 % 1.02 % 0.83 % 0.79 % Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Return on average equity (ROE) 7.28 % 12.60 % 9.14 % 9.84 %Net securities losses, net of tax 0.07 % 0.03 % 0.02 % 0.09 %Merger expenses, net of tax 1.13 % — % 0.30 % — %Non-GAAP core ROE 8.48 % 12.63 % 9.46 % 9.93 % Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Basic earnings per share (EPS) $ 0.50 $ 0.77 $ 2.35 $ 2.34 Net securities losses, net of tax — — 0.01 0.02 Merger expenses, net of tax 0.08 — 0.08 — Non-GAAP basic core EPS $ 0.58 $ 0.77 $ 2.44 $ 2.36 Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Diluted EPS $ 0.49 $ 0.77 $ 2.35 $ 2.34 Net securities losses, net of tax — — 0.01 0.02 Merger expenses, net of tax 0.08 — 0.08 — Non-GAAP diluted core EPS $ 0.57 $ 0.77 $ 2.44 $ 2.36 (Dollars in Thousands, Except Share and Per Share Data, Unaudited) Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Total shareholders' equity $ 205,231 $ 203,694 $ 197,087 $ 193,517 $ 191,556 Goodwill (16,450) (16,450) (16,450) (16,450) (16,450)Intangibles (107) (133) (158) (184) (210)Tangible shareholders' equity $ 188,674 $ 187,111 $ 180,479 $ 176,883 $ 174,896 Shares outstanding 7,556,743 7,554,488 7,541,474 7,525,372 7,508,994 Book value per share $ 27.16 $ 26.96 $ 26.13 $ 25.72 $ 25.51 Tangible book value per share (Non-GAAP) $ 24.97 $ 24.77 $ 23.93 $ 23.50 $ 23.29

Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

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