0000716605False00007166052023-07-252023-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 25, 2023 
Date of Report (Date of earliest event reported)
 
PENNS WOODS BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 000-17077 23-2226454
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Ident. No.)
 
300 Market StreetP.O. Box 96717703-0967
WilliamsportPennsylvania(Zip Code)
(Address of principal executive offices)
 
(570) 322-1111
Registrant's telephone number, including area code
 
N/A
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

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


Item 2.02                                           Results of Operation and Financial Condition.
 
On July 25, 2023, Penns Woods Bancorp, Inc. (the “Company”) distributed a press release announcing its earnings for the period ended June 30, 2023.  The press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

Item 9.01                                           Financial Statements and Exhibits.

(d)                                 Exhibits:

99.1        Press release, dated July 25, 2023, of Penns Woods Bancorp, Inc. announcing earnings for the period ended June 30, 2023.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 PENNS WOODS BANCORP, INC.
   
Dated:July 25, 2023  
   
 By:/s/  Brian L. Knepp
  Brian L. Knepp
  President and Chief Financial Officer
 

EXHIBIT INDEX
 
Exhibit Number Description
 Press release, dated July 25, 2023, of Penns Woods Bancorp, Inc. announcing earnings for the period ended June 30, 2023.
104Cover page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).



Exhibit 99.1
image0a17.jpg

Press Release — For Immediate Release
July 25, 2023

Penns Woods Bancorp, Inc. Reports Second Quarter 2023 Earnings

Williamsport, PA — July 25, 2023 - Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $8.8 million for the six months ended June 30, 2023, resulting in basic and diluted earnings per share of $1.25.

Highlights

•Net income, as reported under GAAP, for the three and six months ended June 30, 2023 was $4.2 million and $8.8 million, compared to $4.2 million and $7.7 million for the same periods of 2022. Results for the three and six months ended June 30, 2023 compared to 2022 were impacted by a decrease in after-tax securities losses of $12,000 (from a loss of $43,000 to a loss of $31,000) for the three month period and a decrease in after-tax securities losses of $29,000 (from a loss of $91,000 to a loss of $62,000) for the six month period. In addition, bank-owned life insurance income increased due to a gain on death benefit of $380,000 during the six months ended June 30, 2023, while an after-tax loss of $201,000 related to a branch closure negatively impacted the six months ended June 30, 2022.

•The provision for credit losses decreased $850,000 and $629,000 for the three and six months ended June 30, 2023 to a recovery of $1.2 million and $1.1 million, respectively compared to a provision of $330,000 and $480,000 for the 2022 periods due primarily to a recovery on a commercial loan during the second quarter of 2023. The decrease in the provision for credit losses also resulted from improving loan portfolio credit metrics and a minimal level of loan charge-offs.

•Basic and diluted earnings per share for the three and six months ended June 30, 2023 were $0.59 and $1.25. Basic and diluted earnings per share for the three and six months ended June 30, 2022 were $0.60 and $1.08.

•Annualized return on average assets was 0.80% for three months ended June 30, 2023, compared to 0.88% for the corresponding period of 2022. Annualized return on average assets was 0.86% for the six months ended June 30, 2023, compared to 0.80% for the corresponding period of 2022.

•Annualized return on average equity was 9.53% for the three months ended June 30, 2023, compared to 10.15% for the corresponding period of 2022. Annualized return on average equity was 10.37% for the six months ended June 30, 2023, compared to 9.20% for the corresponding period of 2022.

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 $4.2 million and $8.9 million for the three and six months ended June 30, 2023 compared to $4.3 million and $7.8 million for the same periods of 2022. Core earnings per share for the three and six months ended June 30, 2023 was $0.60 and $1.26 basic and diluted, compared to $0.61 and $1.10 basic and diluted core earnings per share for the same periods of 2022. Annualized core return on average assets and core return on average equity were 0.80% and 9.60% for the three months ended June 30, 2023, compared to 0.89% and 10.25% for the corresponding periods of 2022. Core return on average assets and core return on average equity were 0.86% and 10.44% for the six months ended June 30, 2023 compared to 0.81% and 9.31% for the corresponding periods of 2022. 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.


1

Net Interest Margin

The net interest margin for the three and six months ended June 30, 2023 was 2.77% and 2.92%, compared to 3.12% and 3.03% for the corresponding periods of 2022. The decrease in the net interest margin for the three and six month periods was driven by an increase in the rate paid on interest-bearing liabilities of 198 and 161 basis points ("bps"), respectively. The FOMC rate increases during 2022 and 2023 contributed to the increases in rate paid on interest-bearing liabilities as the rate paid on short-term borrowings increased 513 bps and 498 bps for the three and six month periods ended June 30, 2023 compared to the same periods of 2022. Short-term borrowings increased in volume and rate paid as this funding source was utilized to provide funding for the growth in the loan portfolio, resulting in an increase of $2.2 million and $3.7 million in expense for the three and six month periods ended June 30, 2023 compared to the same periods of 2022. The rate paid on interest-bearing deposits increased 158 and 127 bps for the three and six month periods ended June 30, 2023 compared to the corresponding periods of 2022 due to the FOMC rate actions and an increase in competition for deposits. The rates paid on time deposits significantly contributed to the increase in funding costs as rates paid for the three and six month periods ended June 30, 2023 compared to the same periods of 2022 increased 266 bps and 211 bps, respectively, as deposit gathering campaigns initiated in the latter part of 2022 continued throughout 2023. In addition, brokered deposit have been utilized to assist with the funding of the loan portfolio growth and contributed to the increase in time deposit funding costs. Partially offsetting the increase in funding cost was an increases in the yield on interest-earning assets and growth in the average balance of the earning asset portfolio compared to the same periods in 2022. The average loan portfolio balance increased $291.2 million and $278.9 million for the three and six month periods, respectively, as the average yield on the portfolio increased 81 and 71 bps for the same periods. The three and six month periods ended June 30, 2023 were impacted by an increase of 109 and 99 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates.

Assets

Total assets increased to $2.1 billion at June 30, 2023, an increase of $243.5 million compared to June 30, 2022.  Cash and cash equivalents decreased $46.1 million as interest-bearing accounts in other financial institutions decreased $11.9 million and fed funds sold decreased $40.0 million as excess liquidity was primarily utilized to fund the growth in the loan portfolio. Net loans increased $283.1 million to $1.8 billion at June 30, 2023 compared to June 30, 2022, as an emphasis was placed on commercial loan growth coupled with growth in indirect auto lending. The investment portfolio increased $5.1 million from June 30, 2022 to June 30, 2023 as restricted investment in bank stock increased $11.0 million as additional stock was required to be held in the Federal Home Loan Bank of Pittsburgh ("FHLB") due to an increase in the level of borrowings from the FHLB.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.24% at June 30, 2023 from 0.34% at June 30, 2022, as non-performing loans decreased to $4.3 million at June 30, 2023 from $5.1 million at June 30, 2022. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan recoveries of $349,000 for the six months ended June 30, 2023 impacted the allowance for credit losses, which was 0.66% of total loans at June 30, 2023 compared to 0.97% at June 30, 2022 (prior to the adoption of CECL).

Deposits

Deposits decreased $35.8 million to $1.6 billion at June 30, 2023 compared to June 30, 2022. Noninterest-bearing deposits decreased $48.4 million to $475.9 million at June 30, 2023 compared to June 30, 2022.  Core deposits declined as deposits migrated from core deposit accounts into time deposits as market rates increased due to the FOMC rate increases and increased competition for deposits. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Interest-bearing deposits increased $12.5 million from June 30, 2022 to June 30, 2023 primarily due to increased utilization of brokered deposits of $79.2 million 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 was started during the latter part of 2022 and has continued during the first six months of 2023.

Shareholders’ Equity

Shareholders’ equity increased $8.3 million to $174.4 million at June 30, 2023 compared to June 30, 2022.  Accumulated other comprehensive loss of $13.8 million at June 30, 2023 increased from a loss of $9.7 million at June 30, 2022 as a result of a $9.8 million net unrealized loss on available for sale securities at June 30, 2023 compared to an unrealized loss of $6.2 million at June 30, 2022 coupled with an increase in loss of $622,000 in the defined benefit plan obligation. The current level of shareholders’
2

equity equates to a book value per share of $24.70 at June 30, 2023 compared to $23.56 at June 30, 2022, and an equity to asset ratio of 8.17% at June 30, 2023 and 8.78% at June 30, 2022. Dividends declared for the six months ended June 30, 2023 and 2022 were $0.64 per share.

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

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

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.
Contact:Richard A. Grafmyre, Chief Executive Officer
 110 Reynolds Street
 Williamsport, PA 17702
 570-322-1111e-mail: pwod@pwod.com

3

PENNS WOODS BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
 
 June 30,
(In Thousands, Except Share and Per Share Data)20232022% Change
ASSETS:   
Noninterest-bearing balances$32,265 $26,540 21.57 %
Interest-bearing balances in other financial institutions12,596 24,452 (48.49)%
Federal funds sold— 40,000 (100.00)%
Total cash and cash equivalents44,861 90,992 (50.70)%
Investment debt securities, available for sale, at fair value186,626 192,438 (3.02)%
Investment equity securities, at fair value1,143 1,186 (3.63)%
Restricted investment in bank stock, at fair value 24,438 13,458 81.59 %
Loans held for sale3,049 3,857 (20.95)%
Loans1,769,403 1,489,132 18.82 %
Allowance for credit losses(11,592)(14,393)(19.46)%
Loans, net1,757,811 1,474,739 19.19 %
Premises and equipment, net31,180 32,671 (4.56)%
Accrued interest receivable9,498 8,246 15.18 %
Bank-owned life insurance33,524 34,115 (1.73)%
Investment in limited partnerships8,402 4,901 71.43 %
Goodwill16,450 17,104 (3.82)%
Intangibles260 396 (34.34)%
Operating lease right of use asset2,586 2,747 (5.86)%
Deferred tax asset6,332 5,689 11.30 %
Other assets9,159 9,267 (1.17)%
TOTAL ASSETS$2,135,319 $1,891,806 12.87 %
LIABILITIES:   
Interest-bearing deposits$1,077,820 $1,065,291 1.18 %
Noninterest-bearing deposits475,937 524,288 (9.22)%
Total deposits1,553,757 1,589,579 (2.25)%
Short-term borrowings180,410 5,464 3,201.79 %
Long-term borrowings202,692 112,874 79.57 %
Accrued interest payable2,129 452 371.02 %
Operating lease liability2,642 2,800 (5.64)%
Other liabilities19,287 14,583 32.26 %
TOTAL LIABILITIES1,960,917 1,725,752 13.63 %
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; 7,573,713 and 7,559,165 shares issued; 7,063,488 and 7,048,940 shares outstanding42,077 41,995 0.20 %
Additional paid-in capital54,869 53,651 2.27 %
Retained earnings104,104 92,903 12.06 %
Accumulated other comprehensive loss:  
Net unrealized loss on available for sale securities(9,753)(6,222)(56.75)%
Defined benefit plan(4,080)(3,458)(17.99)%
Treasury stock at cost, 510,225(12,815)(12,815)— %
TOTAL SHAREHOLDERS' EQUITY174,402 166,054 5.03 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,135,319 $1,891,806 12.87 %
4

PENNS WOODS BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
(In Thousands, Except Share and Per Share Data)20232022% Change20232022% Change
INTEREST AND DIVIDEND INCOME:      
Loans including fees$19,846 $13,620 45.71 %$37,851 $26,658 41.99 %
Investment securities:     
Taxable1,287 864 48.96 %2,505 1,601 56.46 %
Tax-exempt118 194 (39.18)%296 358 (17.32)%
Dividend and other interest income642 506 26.88 %1,105 842 31.24 %
TOTAL INTEREST AND DIVIDEND INCOME21,893 15,184 44.18 %41,757 29,459 41.75 %
INTEREST EXPENSE:      
Deposits4,851 710 583.24 %8,223 1,498 448.93 %
Short-term borrowings2,232 2 n/m3,672 3 n/m
Long-term borrowings1,424 625 127.84 %2,178 1,258 73.13 %
TOTAL INTEREST EXPENSE8,507 1,337 536.28 %14,073 2,759 410.08 %
NET INTEREST INCOME13,386 13,847 (3.33)%27,684 26,700 3.69 %
(Recovery) provision for loan credit(614)330 (286.06)%(605)480 (226.04)%
(Recovery) provision for off balance sheet credit exposures(566)— n/a(504)— n/a
TOTAL (RECOVERY) PROVISION FOR CREDIT LOSSES (1,180)330 (457.58)%(1,109)480 (331.04)%
NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR CREDIT LOSSES14,566 13,517 7.76 %28,793 26,220 9.81 %
NON-INTEREST INCOME:     
Service charges516 509 1.38 %1,012 1,004 0.80 %
Debt securities losses, available for sale(19)(10)(90.00)%(80)(12)(566.67)%
Net equity securities (losses) gains(20)(44)54.55 %1 (103)100.97 %
Bank-owned life insurance166 161 3.11 %722 331 118.13 %
Gain on sale of loans244 266 (8.27)%.475 611 (22.26)%
Insurance commissions115 107 7.48 %280 277 1.08 %
Brokerage commissions141 158 (10.76)%306 358 (14.53)%
Loan broker income317 371 (14.56)%487 912 (46.60)%
Debit card income340 391 (13.04)%675 736 (8.29)%
Other222 228 (2.63)%401 435 (7.82)%
TOTAL NON-INTEREST INCOME2,022 2,137 (5.38)%4,279 4,549 (5.94)%
NON-INTEREST EXPENSE:      
Salaries and employee benefits6,312 6,141 2.78 %12,488 12,405 0.67 %
Occupancy772 740 4.32 %1,638 1,650 (0.73)%
Furniture and equipment790 746 5.90 %1,636 1,638 (0.12)%
Software amortization173 219 (21.00)%356 472 (24.58)%
Pennsylvania shares tax279 396 (29.55)%527 785 (32.87)%
Professional fees906 582 55.67 %1,594 1,120 42.32 %
Federal Deposit Insurance Corporation deposit insurance452 228 98.25 %697 430 62.09 %
Marketing272 220 23.64 %427 284 50.35 %
Intangible amortization32 41 (21.95)%67 85 (21.18)%
Other1,441 1,107 30.17 %2,897 2,558 13.25 %
TOTAL NON-INTEREST EXPENSE11,429 10,420 9.68 %22,327 21,427 4.20 %
INCOME BEFORE INCOME TAX PROVISION5,159 5,234 (1.43)%10,745 9,342 15.02 %
INCOME TAX PROVISION988 1,003 (1.50)%1,916 1,679 14.12 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'$4,171 $4,231 (1.42)%$8,829 $7,663 15.22 %
EARNINGS PER SHARE - BASIC $0.59 $0.60 (1.67)%$1.25 $1.08 15.74 %
EARNINGS PER SHARE - DILUTED$0.59 $0.60 (1.67)%$1.25 $1.08 15.74 %
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC7,062,018 7,059,045 0.04 %7,060,218 7,065,772 (0.08)%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED7,062,018 7,059,045 0.04 %7,060,218 7,065,772 (0.08)%


5

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
 Three Months Ended
 June 30, 2023June 30, 2022
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$66,613 $461 2.78 %$52,886 $331 2.51 %
All other loans1,672,111 19,482 4.67 %1,394,631 13,358 3.84 %
Total loans (2)
1,738,724 19,943 4.60 %1,447,517 13,689 3.79 %
Federal funds sold— — n/a48,352 154 1.28 %
Taxable securities190,862 1,807 3.84 %154,484 1,048 2.75 %
Tax-exempt securities (3)
23,310 150 2.61 %45,824 245 2.17 %
Total securities214,172 1,957 3.71 %200,308 1,293 2.62 %
Interest-bearing balances in other financial institutions9,961 122 4.91 %102,172 168 0.66 %
Total interest-earning assets1,962,857 22,022 4.50 %1,798,349 15,304 3.42 %
Other assets133,239 131,117   
TOTAL ASSETS$2,096,096   $1,929,466   
LIABILITIES AND SHAREHOLDERS’ EQUITY:      
Savings$232,889 155 0.27 %$248,063 24 0.04 %
Super Now deposits271,438 913 1.35 %388,002 239 0.25 %
Money market deposits293,682 1,665 2.27 %304,636 210 0.28 %
Time deposits261,947 2,118 3.24 %164,301 237 0.58 %
Total interest-bearing deposits1,059,956 4,851 1.84 %1,105,002 710 0.26 %
Short-term borrowings169,723 2,232 5.27 %5,636 2 0.14 %
Long-term borrowings182,719 1,424 3.13 %112,901 625 2.22 %
Total borrowings352,442 3,656 4.16 %118,537 627 2.12 %
Total interest-bearing liabilities1,412,398 8,507 2.42 %1,223,539 1,337 0.44 %
Demand deposits484,607 518,467  
Other liabilities24,059 20,708  
Shareholders’ equity175,032 166,752  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,096,096  $1,929,466  
Interest rate spread (3)
  2.08 %  2.98 %
Net interest income/margin (3)
 $13,515 2.77 % $13,967 3.12 %
1.    Information on this table has been calculated using average daily balance sheets to obtain average balances.
2.    Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
3.    Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income     
from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%
Three Months Ended June 30,
 20232022
Total interest income$21,893 $15,184 
Total interest expense8,507 1,337 
Net interest income (GAAP)13,386 13,847 
Tax equivalent adjustment129 120 
Net interest income (fully taxable equivalent) (non-GAAP)$13,515 $13,967 
6

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
Six Months Ended
 June 30, 2023June 30, 2022
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$65,669 $909 2.79 %$50,775 $639 2.54 %
All other loans1,636,798 37,133 4.57 %1,372,810 26,153 3.84 %
Total loans (2)
1,702,467 38,042 4.51 %1,423,585 26,792 3.80 %
Federal funds sold— — n/a49,171 247 1.01 %
Taxable securities186,168 3,386 3.67 %149,489 1,968 2.67 %
Tax-exempt securities (3)
28,409 375 2.66 %43,416 453 2.12 %
Total securities214,577 3,761 3.53 %192,905 2,421 2.54 %
Interest-bearing balances in other financial institutions9,985 224 4.52 %129,704 228 0.35 %
Total interest-earning assets1,927,029 42,027 4.20 %1,795,365 29,688 3.34 %
Other assets132,561  128,624  
TOTAL ASSETS$2,059,590  $1,923,989  
LIABILITIES AND SHAREHOLDERS’ EQUITY:    
Savings$238,067 275 0.23 %$244,528 46 0.04 %
Super Now deposits318,669 1,852 1.17 %379,496 434 0.23 %
Money market deposits291,719 2,945 2.04 %301,744 396 0.26 %
Time deposits225,414 3,151 2.82 %177,487 622 0.71 %
Total interest-bearing deposits1,073,869 8,223 1.54 %1,103,255 1,498 0.27 %
Short-term borrowings145,871 3,672 5.09 %5,416 3 0.11 %
Long-term borrowings151,169 2,178 2.91 %114,077 1,258 2.23 %
Total borrowings297,040 5,850 3.98 %119,493 1,261 2.13 %
Total interest-bearing liabilities1,370,909 14,073 2.07 %1,222,748 2,759 0.46 %
Demand deposits491,356  512,441  
Other liabilities27,050  22,184  
Shareholders’ equity170,275  166,616  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,059,590  $1,923,989  
Interest rate spread (3)
  2.13 %  2.88 %
Net interest income/margin (3)
 $27,954 2.92 % $26,929 3.03 %
1.    Information on this table has been calculated using average daily balance sheets to obtain average balances.
2.    Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
3.    Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income     
from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%
Six Months Ended June 30,
 20232022
Total interest income$41,757 $29,459 
Total interest expense14,073 2,759 
Net interest income27,684 26,700 
Tax equivalent adjustment270 229 
Net interest income (fully taxable equivalent) (non-GAAP)$27,954 $26,929 
7


(Dollars in Thousands, Except Per Share Data, Unaudited)Quarter Ended
6/30/20233/31/202312/31/20229/30/20226/30/2022
Operating Data 
Net income$4,171$4,658$4,509$5,250$4,231
Net interest income13,38614,29815,54815,53213,847
(Recovery) provision for credit losses(1,180)71575855330
Net security losses(39)(40)(39)(211)(54)
Non-interest income, excluding net security losses2,0612,2972,1202,2942,191
Non-interest expense11,42910,89811,25110,32010,420
Performance Statistics
Net interest margin2.77 %3.10 %3.42 %3.47 %3.12 %
Annualized return on average assets0.80 %0.92 %0.92 %1.09 %0.88 %
Annualized return on average equity9.53 %11.12 %10.92 %12.61 %10.15 %
Annualized net loan charge-offs (recoveries) to average loans(0.11)%0.03 %0.04 %0.01 %(0.01)%
Net (recoveries) charge-offs(472)12314937(40)
Efficiency ratio73.78 %65.46 %59.79 %57.70 %64.72 %
Per Share Data
Basic earnings per share$0.59$0.66$0.64$0.74$0.60
Diluted earnings per share0.590.640.640.740.60
Dividend declared per share0.320.320.320.320.32
Book value24.7024.6423.7623.3223.56
Common stock price:
High27.3427.7726.8924.2924.35
Low21.9521.9023.1522.0222.34
Close25.0323.1026.6222.9123.09
Weighted average common shares: 
Basic7,0627,0587,0557,0517,059
Fully Diluted7,0627,3347,0557,0517,059
End-of-period common shares:
Issued7,5747,5707,5677,5637,559
Treasury(510)(510)(510)(510)(510)
8

(Dollars in Thousands)Quarter Ended
6/30/20233/31/202312/31/20229/30/20226/30/2022
Financial Condition Data:     
General     
Total assets$2,135,319$2,065,143$2,000,080$1,905,116$1,891,806
Loans, net1,757,8111,688,2891,624,0941,545,4891,474,739
Goodwill16,45016,45016,45017,10417,104
Intangibles260292327361396
Total deposits1,553,7571,638,8351,556,4601,590,4151,589,579
Noninterest-bearing475,937502,352519,063537,403524,288
Savings229,108239,526247,952249,532249,057
NOW238,353363,548372,574392,140353,102
Money Market296,957300,273270,589268,532309,453
Time Deposits226,224191,203137,949137,348145,714
Brokered Deposits87,17841,9338,3335,4607,965
Total interest-bearing deposits1,077,8201,136,4831,037,3971,053,0121,065,291
Core deposits*1,240,3551,405,6991,410,1781,447,6071,435,900
Shareholders’ equity174,402173,970167,665164,489166,054
Asset Quality
Non-performing loans$4,276$4,766$4,890$5,743$5,100
Non-performing loans to total assets0.20 %0.23 %0.24 %0.30 %0.27 %
Allowance for loan losses11,59211,73415,63715,21114,393
Allowance for loan losses to total loans0.66 %0.69 %0.95 %0.97 %0.97 %
Allowance for loan losses to non-performing loans
271.09 %246.20 %319.78 %264.86 %282.22 %
Non-performing loans to total loans0.24 %0.28 %0.30 %0.37 %0.34 %
Capitalization
Shareholders’ equity to total assets8.17 %8.42 %8.40 %8.63 %8.78 %

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

Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)2023202220232022
GAAP net income$4,171$4,231$8,829$7,663
Net securities losses, net of tax31436291
Non-GAAP core earnings$4,202$4,274$8,891$7,754
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Return on average assets (ROA)0.80 %0.88 %0.86 %0.80 %
Net securities losses, net of tax— %0.01 %— %0.01 %
Non-GAAP core ROA0.80 %0.89 %0.86 %0.81 %
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Return on average equity (ROE)9.53 %10.15 %10.37 %9.20 %
Net securities losses, net of tax0.07 %0.10 %0.07 %0.11 %
Non-GAAP core ROE9.60 %10.25 %10.44 %9.31 %
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Basic earnings per share (EPS)$0.59$0.60$1.25$1.08
Net securities losses, net of tax0.010.010.010.02
Non-GAAP basic core EPS$0.60$0.61$1.26$1.10
 Three Months Ended June 30,Six Months Ended June 30,
 2023202220232022
Diluted EPS$0.59$0.60$1.25$1.08
Net securities losses, net of tax0.010.010.010.02
Non-GAAP diluted core EPS$0.60$0.61$1.26$1.10




10
v3.23.2
Cover Document
Jul. 25, 2023
Cover [Abstract]  
Title of 12(b) Security Common stock, $5.55 par value
City Area Code (570)
Entity Address, Address Line One 300 Market Street
Entity Incorporation, State or Country Code PA
Entity Registrant Name PENNS WOODS BANCORP, INC.
Document Type 8-K
Document Period End Date Jul. 25, 2023
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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Penns Woods Bancorp (NASDAQ:PWOD)
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