Pennsylvania | 000-17077 | 23-2226454 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Ident. No.) |
300 Market Street | P.O. Box 967 | 17703-0967 |
Williamsport | Pennsylvania | (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.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, $5.55 par value | PWOD | The Nasdaq Global Select Market |
PENNS WOODS BANCORP, INC. | |||
Dated: | April 23, 2020 | ||
By: | /s/ Brian L. Knepp | ||
Brian L. Knepp | |||
President and Chief Financial Officer |
Exhibit Number | Description | |
Press release, dated April 23, 2020, of Penns Woods Bancorp, Inc. announcing earnings for the period ended March 31, 2020. |
• | Net income, as reported under GAAP, for the three months ended March 31, 2020 was $3.1 million, compared to $3.9 million for the same period of 2019. Results for the three months ended March 31, 2020 compared to 2019 were impacted by an decrease in after-tax securities gains of $30,000 (from a gain of $52,000 to a gain of $22,000) for the three month period. |
• | The provision for loan losses increased $390,000 to $750,000 for the three months ended March 31, 2020 compared to $360,000 for the 2019 period. The increase is the result of the economic uncertainty caused by the COVID-19 pandemic. |
• | Basic and diluted earnings per share for the three months ended March 31, 2020 were $0.44 and $0.43, respectively, compared to basic and diluted earnings per share of $0.56 for the three months ended March 31, 2019. |
• | Return on average assets was 0.74% for the three months ended March 31, 2020, compared to 0.95% for the corresponding period of 2019. |
• | Return on average equity was 7.83% for the three months ended March 31, 2020, compared to 10.93% for the corresponding period of 2019. |
• | Approximately one third of employees working remotely. |
• | Loan modification/deferral program in place to defer payments up to 90 days for principal and/or interest with approximately 500 loans affected by this program. |
• | All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring. |
• | Participated in the Paycheck Protection Program by primarily utilizing third parties to service and place the loans. |
• | Significantly reduced deposit rates during the latter half of March 2020. |
• | Increased the provision for loan losses due to the economic uncertainty caused by the COVID-19 pandemic. |
• | Net interest margin compression expected to continue as the rate environment remains below historical levels. |
Contact: | Richard A. Grafmyre, Chief Executive Officer | |
110 Reynolds Street | ||
Williamsport, PA 17702 | ||
570-322-1111 | e-mail: pwod@pwod.com |
March 31, | |||||||||||
(In Thousands, Except Share Data) | 2020 | 2019 | % Change | ||||||||
ASSETS: | |||||||||||
Noninterest-bearing balances | $ | 29,572 | $ | 31,211 | (5.25 | )% | |||||
Interest-bearing balances in other financial institutions | 48,189 | 42,385 | 13.69 | % | |||||||
Total cash and cash equivalents | 77,761 | 73,596 | 5.66 | % | |||||||
Investment debt securities, available for sale, at fair value | 155,522 | 141,762 | 9.71 | % | |||||||
Investment equity securities, at fair value | 1,281 | 1,819 | (29.58 | )% | |||||||
Investment securities, trading | 37 | 42 | (11.90 | )% | |||||||
Restricted investment in bank stock, at fair value | 14,611 | 15,725 | (7.08 | )% | |||||||
Loans held for sale | 4,294 | 1,787 | 140.29 | % | |||||||
Loans | 1,349,400 | 1,384,470 | (2.53 | )% | |||||||
Allowance for loan losses | (12,500 | ) | (13,792 | ) | (9.37 | )% | |||||
Loans, net | 1,336,900 | 1,370,678 | (2.46 | )% | |||||||
Premises and equipment, net | 33,170 | 33,270 | (0.30 | )% | |||||||
Accrued interest receivable | 5,307 | 5,542 | (4.24 | )% | |||||||
Bank-owned life insurance | 29,228 | 28,812 | 1.44 | % | |||||||
Goodwill | 17,104 | 17,104 | — | % | |||||||
Intangibles | 836 | 1,091 | (23.37 | )% | |||||||
Operating lease right of use asset | 3,278 | 4,239 | (22.67 | )% | |||||||
Deferred tax asset | 3,281 | 4,241 | (22.64 | )% | |||||||
Other assets | 5,898 | 5,000 | 17.96 | % | |||||||
TOTAL ASSETS | $ | 1,688,508 | $ | 1,704,708 | (0.95 | )% | |||||
LIABILITIES: | |||||||||||
Interest-bearing deposits | $ | 993,975 | $ | 987,404 | 0.67 | % | |||||
Noninterest-bearing deposits | 332,759 | 321,657 | 3.45 | % | |||||||
Total deposits | 1,326,734 | 1,309,061 | 1.35 | % | |||||||
Short-term borrowings | 17,741 | 84,499 | (79.00 | )% | |||||||
Long-term borrowings | 171,903 | 144,631 | 18.86 | % | |||||||
Accrued interest payable | 1,635 | 1,278 | 27.93 | % | |||||||
Operating lease liability | 3,299 | 4,241 | (22.21 | )% | |||||||
Other liabilities | 10,608 | 13,962 | (24.02 | )% | |||||||
TOTAL LIABILITIES | 1,531,920 | 1,557,672 | (1.65 | )% | |||||||
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; 7,521,491 and 7,518,410 shares issued; 7,041,266 and 7,038,185 shares outstanding | 41,786 | 41,767 | 0.05 | % | |||||||
Additional paid-in capital | 51,701 | 50,890 | 1.59 | % | |||||||
Retained earnings | 77,403 | 71,526 | 8.22 | % | |||||||
Accumulated other comprehensive loss: | |||||||||||
Net unrealized gain on available for sale securities | 2,986 | 197 | 1,415.74 | % | |||||||
Defined benefit plan | (5,199 | ) | (5,239 | ) | 0.76 | % | |||||
Treasury stock at cost, 480,225 | (12,115 | ) | (12,115 | ) | — | % | |||||
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY | 156,562 | 147,026 | 6.49 | % | |||||||
Non-controlling interest | 26 | 10 | 160.00 | % | |||||||
TOTAL SHAREHOLDERS' EQUITY | 156,588 | 147,036 | 6.50 | % | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,688,508 | $ | 1,704,708 | (0.95 | )% |
Three Months Ended March 31, | |||||||||||
(In Thousands, Except Per Share Data) | 2020 | 2019 | % Change | ||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||
Loans including fees | $ | 14,657 | $ | 14,869 | (1.43 | )% | |||||
Investment securities: | |||||||||||
Taxable | 1,010 | 934 | 8.14 | % | |||||||
Tax-exempt | 145 | 174 | (16.67 | )% | |||||||
Dividend and other interest income | 349 | 457 | (23.63 | )% | |||||||
TOTAL INTEREST AND DIVIDEND INCOME | 16,161 | 16,434 | (1.66 | )% | |||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 3,035 | 2,300 | 31.96 | % | |||||||
Short-term borrowings | 22 | 605 | (96.36 | )% | |||||||
Long-term borrowings | 943 | 851 | 10.81 | % | |||||||
TOTAL INTEREST EXPENSE | 4,000 | 3,756 | 6.50 | % | |||||||
NET INTEREST INCOME | 12,161 | 12,678 | (4.08 | )% | |||||||
PROVISION FOR LOAN LOSSES | 750 | 360 | 108.33 | % | |||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,411 | 12,318 | (7.36 | )% | |||||||
NON-INTEREST INCOME: | |||||||||||
Service charges | 549 | 562 | (2.31 | )% | |||||||
Debt securities gains, available for sale | 21 | 13 | 61.54 | % | |||||||
Equity securities gains | 20 | 43 | (53.49 | )% | |||||||
Securities (losses) gains, trading | (13 | ) | 10 | (230.00 | )% | ||||||
Bank-owned life insurance | 192 | 168 | 14.29 | % | |||||||
Gain on sale of loans | 444 | 316 | 40.51 | % | |||||||
Insurance commissions | 127 | 134 | (5.22 | )% | |||||||
Brokerage commissions | 369 | 323 | 14.24 | % | |||||||
Debit card income | 274 | 310 | (11.61 | )% | |||||||
Other | 454 | 375 | 21.07 | % | |||||||
TOTAL NON-INTEREST INCOME | 2,437 | 2,254 | 8.12 | % | |||||||
NON-INTEREST EXPENSE: | |||||||||||
Salaries and employee benefits | 5,667 | 5,501 | 3.02 | % | |||||||
Occupancy | 702 | 779 | (9.88 | )% | |||||||
Furniture and equipment | 860 | 752 | 14.36 | % | |||||||
Software amortization | 250 | 207 | 20.77 | % | |||||||
Pennsylvania shares tax | 285 | 293 | (2.73 | )% | |||||||
Professional fees | 622 | 522 | 19.16 | % | |||||||
Federal Deposit Insurance Corporation deposit insurance | 194 | 268 | (27.61 | )% | |||||||
Marketing | 53 | 102 | (48.04 | )% | |||||||
Intangible amortization | 62 | 71 | (12.68 | )% | |||||||
Other | 1,415 | 1,319 | 7.28 | % | |||||||
TOTAL NON-INTEREST EXPENSE | 10,110 | 9,814 | 3.02 | % | |||||||
INCOME BEFORE INCOME TAX PROVISION | 3,738 | 4,758 | (21.44 | )% | |||||||
INCOME TAX PROVISION | 661 | 812 | (18.60 | )% | |||||||
NET INCOME | $ | 3,077 | $ | 3,946 | (22.02 | )% | |||||
Earnings attributable to noncontrolling interest | 4 | 2 | 100.00 | % | |||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' | $ | 3,073 | $ | 3,944 | (22.08 | )% | |||||
EARNINGS PER SHARE - BASIC | $ | 0.44 | $ | 0.56 | (21.43 | )% | |||||
EARNINGS PER SHARE - DILUTED | $ | 0.43 | $ | 0.56 | (23.21 | )% | |||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 7,040,740 | 7,037,628 | 0.04 | % | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 7,102,990 | 7,037,628 | 0.93 | % | |||||||
DIVIDENDS DECLARED PER SHARE | $ | 0.32 | $ | 0.31 | 3.23 | % |
Three Months Ended | ||||||||||||||||||||||
March 31, 2020 | March 31, 2019 | |||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Tax-exempt loans | $ | 52,979 | $ | 404 | 3.07 | % | $ | 72,714 | $ | 539 | 3.01 | % | ||||||||||
All other loans | 1,303,838 | 14,338 | 4.42 | % | 1,311,315 | 14,443 | 4.47 | % | ||||||||||||||
Total loans | 1,356,817 | 14,742 | 4.37 | % | 1,384,029 | 14,982 | 4.39 | % | ||||||||||||||
Taxable securities | 142,788 | 1,273 | 3.63 | % | 126,033 | 1,350 | 4.28 | % | ||||||||||||||
Tax-exempt securities | 23,773 | 184 | 3.15 | % | 26,711 | 220 | 3.29 | % | ||||||||||||||
Total securities | 166,561 | 1,457 | 3.56 | % | 152,744 | 1,570 | 4.11 | % | ||||||||||||||
Interest-bearing deposits | 26,716 | 86 | 1.29 | % | 6,534 | 41 | 2.54 | % | ||||||||||||||
Total interest-earning assets | 1,550,094 | 16,285 | 4.23 | % | 1,543,307 | 16,593 | 4.35 | % | ||||||||||||||
Other assets | 112,219 | 111,600 | ||||||||||||||||||||
TOTAL ASSETS | $ | 1,662,313 | $ | 1,654,907 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||||
Savings | $ | 177,840 | 91 | 0.21 | % | $ | 166,927 | 30 | 0.07 | % | ||||||||||||
Super Now deposits | 219,826 | 424 | 0.78 | % | 231,508 | 379 | 0.66 | % | ||||||||||||||
Money market deposits | 210,708 | 477 | 0.91 | % | 241,402 | 472 | 0.79 | % | ||||||||||||||
Time deposits | 379,259 | 2,043 | 2.17 | % | 299,644 | 1,419 | 1.92 | % | ||||||||||||||
Total interest-bearing deposits | 987,633 | 3,035 | 1.24 | % | 939,481 | 2,300 | 0.99 | % | ||||||||||||||
Short-term borrowings | 10,847 | 22 | 0.85 | % | 96,029 | 605 | 2.56 | % | ||||||||||||||
Long-term borrowings | 159,920 | 943 | 2.37 | % | 144,191 | 851 | 2.23 | % | ||||||||||||||
Total borrowings | 170,767 | 965 | 2.28 | % | 240,220 | 1,456 | 2.36 | % | ||||||||||||||
Total interest-bearing liabilities | 1,158,400 | 4,000 | 1.39 | % | 1,179,701 | 3,756 | 1.27 | % | ||||||||||||||
Demand deposits | 326,817 | 313,112 | ||||||||||||||||||||
Other liabilities | 19,991 | 17,776 | ||||||||||||||||||||
Shareholders’ equity | 157,105 | 144,318 | ||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,662,313 | $ | 1,654,907 | ||||||||||||||||||
Interest rate spread | 2.84 | % | 3.08 | % | ||||||||||||||||||
Net interest income/margin | $ | 12,285 | 3.19 | % | $ | 12,837 | 3.37 | % |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Total interest income | $ | 16,161 | $ | 16,434 | ||||
Total interest expense | 4,000 | 3,756 | ||||||
Net interest income | 12,161 | 12,678 | ||||||
Tax equivalent adjustment | 124 | 159 | ||||||
Net interest income (fully taxable equivalent) | $ | 12,285 | $ | 12,837 |
(Dollars in Thousands, Except Per Share Data) | Quarter Ended | |||||||||||||||||||
3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | ||||||||||||||||
Operating Data | ||||||||||||||||||||
Net income | $ | 3,073 | $ | 2,833 | $ | 4,650 | $ | 4,245 | $ | 3,944 | ||||||||||
Net interest income | 12,161 | 12,321 | 12,903 | 12,913 | 12,678 | |||||||||||||||
Provision for loan losses | 750 | 1,700 | 360 | 315 | 360 | |||||||||||||||
Net security gains | 28 | 489 | 170 | 23 | 66 | |||||||||||||||
Non-interest income, excluding net security gains | 2,409 | 2,418 | 2,652 | 2,446 | 2,188 | |||||||||||||||
Non-interest expense | 10,110 | 10,294 | 9,541 | 10,059 | 9,814 | |||||||||||||||
Performance Statistics | ||||||||||||||||||||
Net interest margin | 3.19 | % | 3.22 | % | 3.32 | % | 3.39 | % | 3.37 | % | ||||||||||
Annualized return on average assets | 0.74 | % | 0.68 | % | 1.10 | % | 1.02 | % | 0.95 | % | ||||||||||
Annualized return on average equity | 7.83 | % | 7.22 | % | 12.18 | % | 11.42 | % | 10.93 | % | ||||||||||
Annualized net loan charge-offs to average loans | 0.04 | % | 1.19 | % | 0.03 | % | 0.03 | % | 0.12 | % | ||||||||||
Net charge-offs | 144 | 4,055 | 112 | 106 | 405 | |||||||||||||||
Efficiency ratio | 68.96 | % | 69.42 | % | 60.98 | % | 65.04 | % | 65.50 | % | ||||||||||
Per Share Data | ||||||||||||||||||||
Basic earnings per share | $ | 0.44 | $ | 0.40 | $ | 0.66 | $ | 0.61 | $ | 0.56 | ||||||||||
Diluted earnings per share | 0.43 | 0.39 | 0.66 | 0.61 | 0.56 | |||||||||||||||
Dividend declared per share | 0.32 | 0.32 | 0.31 | 0.31 | 0.31 | |||||||||||||||
Book value | 22.23 | 22.01 | 22.03 | 21.53 | 20.89 | |||||||||||||||
Common stock price: | ||||||||||||||||||||
High | 35.36 | 35.58 | 30.93 | 30.17 | 29.67 | |||||||||||||||
Low | 19.05 | 29.68 | 26.87 | 26.03 | 23.23 | |||||||||||||||
Close | 24.30 | 35.58 | 30.83 | 30.17 | 27.40 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||||||
Basic | 7,041 | 7,040 | 7,037 | 7,038 | 7,038 | |||||||||||||||
Fully Diluted | 7,103 | 7,338 | 7,037 | 7,038 | 7,038 | |||||||||||||||
End-of-period common shares: | ||||||||||||||||||||
Issued | 7,521 | 7,521 | 7,518 | 7,518 | 7,518 | |||||||||||||||
Treasury | 480 | 480 | 480 | 480 | 480 |
(Dollars in Thousands, Except Per Share Data) | Quarter Ended | |||||||||||||||||||
3/31/2020 | 12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | ||||||||||||||||
Financial Condition Data: | ||||||||||||||||||||
General | ||||||||||||||||||||
Total assets | $ | 1,688,508 | $ | 1,665,323 | $ | 1,673,095 | $ | 1,711,500 | $ | 1,704,708 | ||||||||||
Loans, net | 1,336,900 | 1,343,650 | 1,350,735 | 1,365,284 | 1,370,678 | |||||||||||||||
Goodwill | 17,104 | 17,104 | 17,104 | 17,104 | 17,104 | |||||||||||||||
Intangibles | 836 | 898 | 960 | 1,022 | 1,091 | |||||||||||||||
Total deposits | 1,326,734 | 1,324,005 | 1,332,407 | 1,327,086 | 1,309,061 | |||||||||||||||
Noninterest-bearing | 332,759 | 334,746 | 327,329 | 322,755 | 321,657 | |||||||||||||||
Savings | 183,929 | 176,732 | 171,370 | 171,992 | 170,005 | |||||||||||||||
NOW | 229,919 | 218,605 | 219,466 | 238,410 | 253,475 | |||||||||||||||
Money Market | 204,832 | 216,038 | 239,926 | 238,352 | 244,753 | |||||||||||||||
Time Deposits | 375,295 | 377,884 | 374,316 | 355,577 | 319,171 | |||||||||||||||
Total interest-bearing deposits | 993,975 | 989,259 | 1,005,078 | 1,004,331 | 987,404 | |||||||||||||||
Core deposits* | 951,439 | 946,121 | 958,091 | 971,509 | 989,890 | |||||||||||||||
Shareholders’ equity | 156,562 | 154,960 | 155,061 | 151,527 | 147,026 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Non-performing loans | $ | 11,300 | $ | 12,758 | $ | 17,208 | $ | 15,383 | $ | 15,794 | ||||||||||
Non-performing loans to total assets | 0.67 | % | 0.77 | % | 1.03 | % | 0.90 | % | 0.93 | % | ||||||||||
Allowance for loan losses | 12,500 | 11,894 | 14,249 | 14,001 | 13,792 | |||||||||||||||
Allowance for loan losses to total loans | 0.93 | % | 0.88 | % | 1.04 | % | 1.02 | % | 1.00 | % | ||||||||||
Allowance for loan losses to non-performing loans | 110.62 | % | 93.23 | % | 82.80 | % | 91.02 | % | 87.32 | % | ||||||||||
Non-performing loans to total loans | 0.84 | % | 0.94 | % | 1.26 | % | 1.12 | % | 1.14 | % | ||||||||||
Capitalization | ||||||||||||||||||||
Shareholders’ equity to total assets | 9.27 | % | 9.31 | % | 9.27 | % | 8.85 | % | 8.62 | % |
Three Months Ended March 31, | ||||||||
(Dollars in Thousands, Except Per Share Data) | 2020 | 2019 | ||||||
GAAP net income | $ | 3,073 | $ | 3,944 | ||||
Less: net securities gains, net of tax | 22 | 52 | ||||||
Non-GAAP core earnings | $ | 3,051 | $ | 3,892 | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Return on average assets (ROA) | 0.74 | % | 0.95 | % | ||||
Less: net securities gains, net of tax | 0.01 | % | 0.01 | % | ||||
Non-GAAP core ROA | 0.73 | % | 0.94 | % | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Return on average equity (ROE) | 7.83 | % | 10.93 | % | ||||
Less: net securities gains, net of tax | 0.06 | % | 0.14 | % | ||||
Non-GAAP core ROE | 7.77 | % | 10.79 | % | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Basic earnings per share (EPS) | $ | 0.44 | $ | 0.56 | ||||
Less: net securities gains, net of tax | — | 0.01 | ||||||
Non-GAAP basic core EPS | $ | 0.44 | $ | 0.55 | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Diluted EPS | $ | 0.43 | $ | 0.56 | ||||
Less: net securities gains, net of tax | — | 0.01 | ||||||
Non-GAAP diluted core EPS | $ | 0.43 | $ | 0.55 |
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