0000716605False00007166052024-01-292024-01-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
January 29, 2024 
Date of Report (Date of earliest event reported)
 
PENNS WOODS BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 000-17077 23-2226454
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Ident. No.)
 
300 Market StreetP.O. Box 96717703-0967
WilliamsportPennsylvania(Zip Code)
(Address of principal executive offices)
 
(570) 322-1111
Registrant's telephone number, including area code
 
N/A
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

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


Item 2.02                                           Results of Operation and Financial Condition.
 
On January 29, 2024, Penns Woods Bancorp, Inc. (the “Company”) distributed a press release announcing its earnings for the period ended December 31, 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 January 29, 2024, of Penns Woods Bancorp, Inc. announcing earnings for the period ended December 31, 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:January 29, 2024  
   
 By:/s/  Brian L. Knepp
  Brian L. Knepp
  President and Chief Financial Officer
 

EXHIBIT INDEX
 
Exhibit Number Description
 Press release, dated January 29, 2024, of Penns Woods Bancorp, Inc. announcing earnings for the period ended December 31, 2023.
104Cover page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).



Exhibit 99.1
image0a17a.jpg

Press Release — For Immediate Release
January 29, 2024

Penns Woods Bancorp, Inc. Reports Fourth Quarter and Year Ended 2023 Earnings

Williamsport, PA — January 29, 2024 - Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $16.6 million for the twelve months ended December 31, 2023, resulting in basic and diluted earnings per share of $2.34.

Highlights

•Net income, as reported under GAAP, for the three and twelve months ended December 31, 2023 was $5.6 million and $16.6 million, compared to $4.5 million and $17.4 million for the same periods of 2022. Results for the three and twelve months ended December 31, 2023 compared to 2022 were impacted by a decrease in net interest income of $1.6 million and $2.8 million, respectively, as interest expense increased significantly due to the velocity and magnitude of the rate increases enacted by the Federal Open Market Committee ("FOMC"). In addition, results were impacted by a decrease in after-tax securities losses of $17,000 (from a loss of $31,000 to a loss of $14,000) for the three month period and a decrease in after-tax securities losses of $147,000 (from a loss of $288,000 to a loss of $141,000) for the twelve month period. Bank-owned life insurance income increased due to a gain on death benefit of $380,000 during the twelve months ended December 31, 2023. The sale of a former branch property resulted in an after-tax gain of $117,000 for the twelve month period ended December 31, 2023, while an after-tax loss of $201,000 related to a branch closure negatively impacted the same period of 2022.

•The provision for credit losses decreased $2.3 million for the three months ended December 31, 2023 and decreased $3.4 million for the twelve months ended December 31, 2023 to a recovery of $1.7 million and $1.5 million, respectively, compared to a provision of $575,000 and $1.9 million for the 2022 periods. The decrease for the three and twelve month 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 and twelve months ended December 31, 2023 were $0.77 and $2.34, respectively, compared to basic and diluted earnings per share of $0.64 and $2.47 for the three and twelve month periods ended December 31, 2022.

•Annualized return on average assets was 1.02% for three months ended December 31, 2023, compared to 0.92% for the corresponding period of 2022. Annualized return on average assets was 0.79% for the twelve months ended December 31, 2023, compared to 0.90% for the corresponding period of 2022.

•Annualized return on average equity was 12.60% for the three months ended December 31, 2023, compared to 10.92% for the corresponding period of 2022. Annualized return on average equity was 9.84% for the twelve months ended December 31, 2023, compared to 10.73% 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 $5.6 million and $16.7 million for the three and twelve months ended December 31, 2023 compared to $5.1 million and $18.2 million for the same periods of 2022. Basic and diluted core earnings per share (non-GAAP) for the three and twelve months ended December 31, 2023 were $0.77 and $2.36, respectively, while basic and diluted core earnings per share for the same periods of 2022 were $0.71 and $2.58. Annualized core return on average assets and core return on average equity (non-GAAP) were 1.02% and 12.63% for the three months ended December 31, 2023, compared to
1

1.04% and 12.25% for the corresponding periods of 2022. Core return on average assets and core return on average equity (non-GAAP) were 0.79% and 9.93% for the twelve months ended December 31, 2023 compared to 0.94% and 11.22% 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.

Net Interest Margin

The net interest margin for the three and twelve months ended December 31, 2023 was 2.73% and 2.80%, compared to 3.42% and 3.24% for the corresponding periods of 2022. The decrease in the net interest margin for the three and twelve month periods was driven by an increase in the rate paid on interest-bearing liabilities of 215 and 197 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 165 bps and 192 bps for the three and twelve month periods ended December 31, 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 $1.3 million and $7.4 million, respectively, in expense for the three and twelve month periods ended December 31, 2023 compared to the same periods of 2022. The rate paid on interest-bearing deposits increased 207 and 168 bps for the three and twelve month periods ended December 31, 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 twelve month periods ended December 31, 2023 compared to the same periods of 2022 increased 324 bps and 282 bps, respectively, as deposit gathering campaigns initiated in the latter part of 2022 continued throughout 2023. In addition, brokered deposits 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 increase in the yield on interest-earning assets and growth in the average balance of the earning assets portfolio compared to the same periods in 2022. The average loan portfolio balance increased $220.6 million and $263.7 million for the three and twelve month periods as the average yield on the portfolio increased 96 and 81 bps for the same periods. The three and twelve month periods ended December 31, 2023 were impacted by an increase of 81 and 94 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 $2.2 billion at December 31, 2023, an increase of $204.7 million compared to December 31, 2022.  Net loans increased $204.2 million to $1.8 billion at December 31, 2023 compared to December 31, 2022, as continued emphasis was placed on commercial loan growth coupled with growth in indirect auto lending. The investment portfolio increased $2.4 million from December 31, 2022 to December 31, 2023 as restricted investment in bank stock increased $5.2 million resulting from the requirement to hold additional stock in the Federal Home Loan Bank of Pittsburgh ("FHLB") due to an increase in the level of borrowings from the FHLB. The increase in total borrowings of $142.4 million to $398.5 million at December 31, 2023 was utilized to provide funding for the growth in the loan portfolio.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.17% at December 31, 2023 from 0.30% at December 31, 2022, as non-performing loans decreased to $3.1 million at December 31, 2023 from $4.9 million at December 31, 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 $525,000 for the twelve months ended December 31, 2023 impacted the allowance for credit losses, which was 0.62% of total loans at December 31, 2023 compared to 0.95% at December 31, 2022 (prior to the adoption of CECL).

Deposits

Deposits increased $33.0 million to $1.6 billion at December 31, 2023 compared to December 31, 2022. Noninterest-bearing deposits decreased $47.9 million to $471.2 million at December 31, 2023 compared to December 31, 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 $80.9 million from December 31, 2022 to December 31, 2023 primarily due to increased utilization of brokered deposits of $116.4 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 commenced during the latter part of 2022 and has continued during 2023 with current efforts centered on five to ten months.

2

Shareholders’ Equity

Shareholders’ equity increased $23.9 million to $191.6 million at December 31, 2023 compared to December 31, 2022.  During the twelve months ended December 31, 2023 the Company sold 420,069 shares of common stock, for net proceeds of $8.3 million, in a registered at-the-market offering. An additional 17,929 shares for net proceeds of $406,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2023. Accumulated other comprehensive loss of $9.2 million at December 31, 2023 decreased from a loss of $14.0 million at December 31, 2022 as a result of a decrease in net unrealized loss on available for sale securities to $6.4 million at December 31, 2023 from a net unrealized loss of $9.8 million at December 31, 2022 coupled with a decrease in loss of $1.4 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $25.51 at December 31, 2023 compared to $23.76 at December 31, 2022, and an equity to asset ratio of 8.69% at December 31, 2023 and 8.40% at December 31, 2022. Dividends declared for the twelve months ended December 31, 2023 and 2022 were $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; 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)
 
 December 31,
(In Thousands, Except Share and Per Share Data)20232022% Change
ASSETS:   
Noninterest-bearing balances$28,969 $27,390 5.76 %
Interest-bearing balances in other financial institutions8,493 12,943 (34.38)%
Total cash and cash equivalents37,462 40,333 (7.12)%
Investment debt securities, available for sale, at fair value190,945 193,673 (1.41)%
Investment equity securities, at fair value1,122 1,142 (1.75)%
Restricted investment in bank stock24,323 19,171 26.87 %
Loans held for sale3,993 3,298 21.07 %
Loans1,839,764 1,639,731 12.20 %
Allowance for credit losses(11,446)(15,637)(26.80)%
Loans, net1,828,318 1,624,094 12.57 %
Premises and equipment, net30,250 31,844 (5.01)%
Accrued interest receivable11,044 9,481 16.49 %
Bank-owned life insurance33,867 34,452 (1.70)%
Investment in limited partnerships7,815 8,656 (9.72)%
Goodwill16,450 16,450 — %
Intangibles210 327 (35.78)%
Operating lease right of use asset2,512 2,651 (5.24)%
Deferred tax asset4,655 6,868 (32.22)%
Other assets11,843 7,640 55.01 %
TOTAL ASSETS$2,204,809 $2,000,080 10.24 %
LIABILITIES:   
Interest-bearing deposits$1,118,320 $1,037,397 7.80 %
Noninterest-bearing deposits471,173 519,063 (9.23)%
Total deposits1,589,493 1,556,460 2.12 %
Short-term borrowings145,926 153,349 (4.84)%
Long-term borrowings252,598 102,783 145.76 %
Accrued interest payable3,814 603 532.50 %
Operating lease liability2,570 2,708 (5.10)%
Other liabilities18,852 16,512 14.17 %
TOTAL LIABILITIES2,013,253 1,832,415 9.87 %
SHAREHOLDERS’ EQUITY:   
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued— — n/a
Common stock, par value $5.55, 22,500,000 shares authorized; 8,019,219 and 7,566,810 shares issued; 7,508,994 and 7,056,585 shares outstanding44,550 42,039 5.97 %
Additional paid-in capital61,733 54,252 13.79 %
Retained earnings107,238 98,147 9.26 %
Accumulated other comprehensive loss:  
Net unrealized loss on available for sale securities(6,396)(9,819)34.86 %
Defined benefit plan(2,754)(4,139)33.46 %
Treasury stock at cost, 510,225 shares(12,815)(12,815)— %
TOTAL SHAREHOLDERS' EQUITY191,556 167,665 14.25 %
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,204,809 $2,000,080 10.24 %
4

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)20232022% Change20232022% Change
INTEREST AND DIVIDEND INCOME:      
Loans including fees$23,720 $16,973 39.75 %$83,291 $58,682 41.94 %
Investment securities:     
Taxable1,476 1,084 36.16 %5,346 3,634 47.11 %
Tax-exempt107 229 (53.28)%517 823 (37.18)%
Dividend and other interest income614 319 92.48 %2,441 1,789 36.44 %
TOTAL INTEREST AND DIVIDEND INCOME25,917 18,605 39.30 %91,595 64,928 41.07 %
INTEREST EXPENSE:      
Deposits7,445 1,499 396.66 %22,131 3,690 499.76 %
Short-term borrowings2,317 978 136.91 %8,401 1,007 734.26 %
Long-term borrowings2,207 580 280.52 %6,099 2,451 148.84 %
TOTAL INTEREST EXPENSE11,969 3,057 291.53 %36,631 7,148 412.47 %
NET INTEREST INCOME13,948 15,548 (10.29)%54,964 57,780 (4.87)%
(Recovery) provision for loan credit losses(1,653)575 (387.48)%(927)1,910 (148.53)%
Recovery for off balance sheet credit exposures(89)— n/a(552)— n/a
TOTAL (RECOVERY) PROVISION FOR CREDIT LOSSES (1,742)575 (402.96)%(1,479)1,910 (177.43)%
NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR CREDIT LOSSES15,690 14,973 4.79 %56,443 55,870 1.03 %
NON-INTEREST INCOME:     
Service charges533 540 (1.30)%2,090 2,103 (0.62)%
Net debt securities losses, available for sale(68)(51)(33.33)%(193)(219)11.87 %
Net equity securities gains (losses)50 12 316.67 %15 (146)110.27 %
Bank-owned life insurance171 163 4.91 %1,063 664 60.09 %
Gain on sale of loans314 226 38.94 %.1,046 1,131 (7.52)%
Insurance commissions113 105 7.62 %529 491 7.74 %
Brokerage commissions127 120 5.83 %575 620 (7.26)%
Loan broker income264 324 (18.52)%992 1,674 (40.74)%
Debit card income333 384 (13.28)%1,328 1,464 (9.29)%
Other384 258 48.84 %930 931 (0.11)%
TOTAL NON-INTEREST INCOME2,221 2,081 6.73 %8,375 8,713 (3.88)%
NON-INTEREST EXPENSE:      
Salaries and employee benefits6,284 5,846 7.49 %25,062 24,267 3.28 %
Occupancy746 700 6.57 %3,168 3,080 2.86 %
Furniture and equipment889 834 6.59 %3,392 3,288 3.16 %
Software amortization250 180 38.89 %843 840 0.36 %
Pennsylvania shares tax275 333 (17.42)%1,082 1,452 (25.48)%
Professional fees640 688 (6.98)%2,953 2,434 21.32 %
Federal Deposit Insurance Corporation deposit insurance456 248 83.87 %1,578 938 68.23 %
Marketing90 255 (64.71)%684 690 (0.87)%
Intangible amortization25 35 (28.57)%117 154 (24.03)%
Goodwill impairment— 653 n/a— 653 n/a
Other1,342 1,479 (9.26)%5,617 5,202 7.98 %
TOTAL NON-INTEREST EXPENSE10,997 11,251 (2.26)%44,496 42,998 3.48 %
INCOME BEFORE INCOME TAX PROVISION6,914 5,803 19.15 %20,322 21,585 (5.85)%
INCOME TAX PROVISION1,359 1,294 5.02 %3,714 4,163 (10.79)%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'$5,555 $4,509 23.20 %$16,608 $17,422 (4.67)%
EARNINGS PER SHARE - BASIC $0.77 $0.64 20.31 %$2.34 $2.47 (5.26)%
EARNINGS PER SHARE - DILUTED$0.77 $0.64 20.31 %$2.34 $2.47 (5.26)%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC7,255,222 7,055,181 2.84 %7,112,450 7,059,437 0.75 %
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED7,255,222 7,055,181 2.84 %7,112,450 7,059,437 0.75 %


5

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
 Three Months Ended
 December 31, 2023December 31, 2022
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$68,234 $478 2.78 %$61,756 $408 2.62 %
All other loans1,760,509 23,342 5.26 %1,546,338 16,651 4.27 %
Total loans (2)
1,828,743 23,820 5.17 %1,608,094 17,059 4.21 %
Federal funds sold— — — %— — — %
Taxable securities193,744 1,932 4.04 %167,405 1,329 3.22 %
Tax-exempt securities (3)
18,041 135 3.03 %41,167 290 2.86 %
Total securities211,785 2,067 3.96 %208,572 1,619 3.15 %
Interest-bearing balances in other financial institutions11,795 158 5.31 %5,797 74 5.06 %
Total interest-earning assets2,052,323 26,045 5.04 %1,822,463 18,752 4.09 %
Other assets130,421 128,084   
TOTAL ASSETS$2,182,744   $1,950,547   
LIABILITIES AND SHAREHOLDERS’ EQUITY:      
Savings$222,740 229 0.41 %$249,793 66 0.10 %
Super Now deposits227,113 1,129 1.97 %385,060 623 0.64 %
Money market deposits293,542 2,217 3.00 %268,519 509 0.75 %
Time deposits377,516 3,870 4.07 %144,491 301 0.83 %
Total interest-bearing deposits1,120,911 7,445 2.64 %1,047,863 1,499 0.57 %
Short-term borrowings163,088 2,317 5.63 %97,585 978 3.98 %
Long-term borrowings235,998 2,207 3.71 %102,814 580 2.24 %
Total borrowings399,086 4,524 4.50 %200,399 1,558 3.09 %
Total interest-bearing liabilities1,519,997 11,969 3.12 %1,248,262 3,057 0.97 %
Demand deposits457,546 517,977  
Other liabilities28,786 19,151  
Shareholders’ equity176,415 165,157  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,182,744  $1,950,547  
Interest rate spread (3)
  1.92 %  3.12 %
Net interest income/margin (3)
 $14,076 2.73 % $15,695 3.42 %
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,
 20232022
Total interest income$25,917 $18,605 
Total interest expense11,969 3,057 
Net interest income (GAAP)13,948 15,548 
Tax equivalent adjustment128 147 
Net interest income (fully taxable equivalent) (non-GAAP)$14,076 $15,695 
6

PENNS WOODS BANCORP, INC.
AVERAGE BALANCES AND INTEREST RATES 
(UNAUDITED)
Twelve Months Ended
 December 31, 2023December 31, 2022
(Dollars in Thousands)
Average 
Balance (1)
InterestAverage 
Rate
Average 
Balance (1)
InterestAverage 
Rate
ASSETS:      
Tax-exempt loans (3)
$66,863 $1,849 2.77 %$55,364 $1,441 2.60 %
All other loans1,691,742 81,830 4.84 %1,439,550 57,544 4.00 %
Total loans (2)
1,758,605 83,679 4.76 %1,494,914 58,985 3.95 %
Federal funds sold— — — %32,863 465 1.41 %
Taxable securities189,804 7,263 3.83 %156,584 4,455 2.88 %
Tax-exempt securities (3)
23,872 654 2.74 %44,301 1,042 2.38 %
Total securities213,676 7,917 3.71 %200,885 5,497 2.77 %
Interest-bearing balances in other financial institutions10,916 524 4.80 %74,401 503 0.68 %
Total interest-earning assets1,983,197 92,120 4.65 %1,803,063 65,450 3.63 %
Other assets131,704  128,213  
TOTAL ASSETS$2,114,901  $1,931,276  
LIABILITIES AND SHAREHOLDERS’ EQUITY:    
Savings$231,000 685 0.30 %$247,003 138 0.06 %
Super Now deposits276,868 4,155 1.50 %387,370 1,344 0.35 %
Money market deposits292,755 7,024 2.40 %289,820 1,105 0.38 %
Time deposits293,252 10,267 3.50 %161,982 1,103 0.68 %
Total interest-bearing deposits1,093,875 22,131 2.02 %1,086,175 3,690 0.34 %
Short-term borrowings157,140 8,401 5.36 %29,315 1,007 3.44 %
Long-term borrowings186,094 6,099 3.28 %110,027 2,451 2.23 %
Total borrowings343,234 14,500 4.23 %139,342 3,458 2.48 %
Total interest-bearing liabilities1,437,109 36,631 2.55 %1,225,517 7,148 0.58 %
Demand deposits477,828  519,189  
Other liabilities31,243  24,182  
Shareholders’ equity168,721  162,388  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,114,901  $1,931,276  
Interest rate spread (3)
  2.10 %  3.05 %
Net interest income/margin (3)
 $55,489 2.80 % $58,302 3.24 %
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,
 20232022
Total interest income$91,595 $64,928 
Total interest expense36,631 7,148 
Net interest income54,964 57,780 
Tax equivalent adjustment525 522 
Net interest income (fully taxable equivalent) (non-GAAP)$55,489 $58,302 
7


(Dollars in Thousands, Except Per Share Data, Unaudited)Quarter Ended
12/31/20239/30/20236/30/20233/31/202312/31/2022
Operating Data 
Net income$5,555$2,224$4,171$4,658$4,509
Net interest income13,94813,33213,38614,29815,548
(Recovery) provision for credit losses(1,742)1,372(1,180)71575
Net security losses(18)(81)(39)(40)(39)
Non-interest income, excluding net security losses2,2391,9562,0612,2972,120
Non-interest expense10,99711,17211,42910,89811,251
Performance Statistics
Net interest margin2.73 %2.65 %2.77 %3.10 %3.42 %
Annualized return on average assets1.02 %0.41 %0.80 %0.92 %0.92 %
Annualized return on average equity12.60 %5.06 %9.53 %11.12 %10.92 %
Annualized net loan (recoveries) charge-offs to average loans(0.05)%0.01 %(0.11)%0.03 %0.04 %
Net (recoveries) charge-offs(209)33(472)123149
Efficiency ratio67.78 %72.76 %73.78 %65.46 %59.79 %
Per Share Data
Basic earnings per share$0.77$0.31$0.59$0.66$0.64
Diluted earnings per share0.770.310.590.640.64
Dividend declared per share0.320.320.320.320.32
Book value25.5124.5524.7024.6423.76
Common stock price:
High23.6427.1727.3427.7726.89
Low20.0520.7021.9521.9023.15
Close22.5121.0825.0323.1026.62
Weighted average common shares: 
Basic7,2557,0727,0627,0587,055
Fully Diluted7,2557,2297,0627,3347,055
End-of-period common shares:
Issued8,0197,6207,5747,5707,567
Treasury(510)(510)(510)(510)(510)
8

(Dollars in Thousands)Quarter Ended
12/31/20239/30/20236/30/20233/31/202312/31/2022
Financial Condition Data:     
General     
Total assets$2,204,809$2,176,468$2,135,319$2,065,143$2,000,080
Loans, net1,828,3181,805,5711,757,8111,688,2891,624,094
Goodwill16,45016,45016,45016,45016,450
Intangibles210235260292327
Total deposits1,589,4931,567,2671,553,7571,638,8351,556,460
Noninterest-bearing471,173471,507475,937502,352519,063
Savings219,287226,897229,108239,526247,952
NOW214,888220,730238,353363,548372,574
Money Market299,353291,889296,957300,273270,589
Time Deposits260,067249,550226,224191,203137,949
Brokered Deposits124,725106,69487,17841,9338,333
Total interest-bearing deposits1,118,3201,095,7601,077,8201,136,4831,037,397
Core deposits*1,204,7011,211,0231,240,3551,405,6991,410,178
Shareholders’ equity191,556174,540174,402173,970167,665
Asset Quality
Non-performing loans$3,148$3,683$4,276$4,766$4,890
Non-performing loans to total assets0.14 %0.17 %0.20 %0.23 %0.24 %
Allowance for loan losses11,44612,89011,59211,73415,637
Allowance for loan losses to total loans0.62 %0.71 %0.66 %0.69 %0.95 %
Allowance for loan losses to non-performing loans
363.60 %349.99 %271.09 %246.20 %319.78 %
Non-performing loans to total loans0.17 %0.20 %0.24 %0.28 %0.30 %
Capitalization
Shareholders’ equity to total assets8.69 %8.02 %8.17 %8.42 %8.40 %

* 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 December 31,Twelve Months Ended December 31,
(Dollars in Thousands, Except Per Share Data)2023202220232022
GAAP net income$5,555$4,509$16,608$17,422
Net securities losses, net of tax1431141288
Goodwill impairment—516—516
Non-GAAP core earnings$5,569$5,056$16,749$18,226
 Three Months Ended December 31,Twelve Months Ended December 31,
 2023202220232022
Return on average assets (ROA)1.02 %0.92 %0.79 %0.90 %
Net securities losses, net of tax— %0.01 %— %0.01 %
Goodwill impairment— %0.11 %— %0.03 %
Non-GAAP core ROA1.02 %1.04 %0.79 %0.94 %
 Three Months Ended December 31,Twelve Months Ended December 31,
 2023202220232022
Return on average equity (ROE)12.60 %10.92 %9.84 %10.73 %
Net securities losses, net of tax0.03 %0.08 %0.09 %0.17 %
Goodwill impairment— %1.25 %— %0.32 %
Non-GAAP core ROE12.63 %12.25 %9.93 %11.22 %
 Three Months Ended December 31,Twelve Months Ended December 31,
 2023202220232022
Basic earnings per share (EPS)$0.77$0.64$2.34$2.47
Net securities losses, net of tax——0.020.04
Goodwill impairment—0.07—0.07
Non-GAAP basic core EPS$0.77$0.71$2.36$2.58
 Three Months Ended December 31,Twelve Months Ended December 31,
 2023202220232022
Diluted EPS$0.77$0.64$2.34$2.47
Net securities losses, net of tax——0.020.04
Goodwill impairment—0.07—0.07
Non-GAAP diluted core EPS$0.77$0.71$2.36$2.58




10
v3.24.0.1
Cover Document
Jan. 29, 2024
Cover [Abstract]  
Title of 12(b) Security Common stock, $5.55 par value
City Area Code (570)
Entity Address, Address Line One 300 Market Street
Entity Incorporation, State or Country Code PA
Entity Registrant Name PENNS WOODS BANCORP, INC.
Document Type 8-K
Document Period End Date Jan. 29, 2024
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity File Number 000-17077
Entity Tax Identification Number 23-2226454
Entity Address, Address Line Two P.O. Box 967
Entity Address, Postal Zip Code 17703-0967
Entity Address, City or Town Williamsport
Entity Address, State or Province PA
Local Phone Number 322-1111
Trading Symbol PWOD
Security Exchange Name NASDAQ
Entity Central Index Key 0000716605
Amendment Flag false
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