Acquisition of Luzerne National Bank Corporation (Tables)

6 Months Ended

Jun. 30, 2013

Acquisition of Luzerne National Bank Corporation

Summary of the purchase of Luzerne National Bank Corporation

The following table summarizes the purchase of Luzerne National Bank Corporation as of June 1, 2013:

(In Thousands, Except Per Share Data)
Purchase Price Consideration in Common Stock
Luzerne National Bank Corporation common shares settled for stock	630,216
Exchange Ratio	1.5534
Penns Woods Bancorp, Inc. shares issued	978,977
Value assigned to Penns Woods Bancorp, Inc. common share	$	40.59
Purchase price assigned to Luzerne National Bank Corporation common shares exchanged for Penns Woods Bancorp, Inc.				$	39,736
Purchase Price Consideration - Cash for Common Stock
Luzerne National Bank Corporation shares exchanged for cash	46,480
Purchase price paid to each Luzerne National Bank Corporation common share exchanged for cash	$	61.86
Purchase price assigned to Luzerne National Bank Corporation common shares exchanged for cash				2,876
Total Purchase Price				42,612
Net Assets Acquired:
Luzerne National Bank Corporation shareholders’ equity	$	27,371
Adjustments to reflect assets acquired at fair value:
Investments	33
Loans
Interest rate	2,680
General credit	(3,206		)
Specific credit - non-amortizing	(58		)
Specific credit - amortizing	(40		)
Core deposit intangible	1,882
Trade name intangible	133
Owned premises	1,138
Leased premises contracts	122
Deferred tax assets	(603		)
Adjustments to reflect liabilities acquired at fair value:
Time deposits	(912		)
				28,540
Goodwill resulting from merger				$	14,072

Schedule of condensed statement reflecting the values assigned to Luzerne National Bank Corporation's net assets

(In Thousands)
Total purchase price				$	42,612
Net assets acquired:
Cash	$	20,296
Federal funds sold	67
Securities available for sale	21,783
Loans	250,377
Premises and equipment, net	8,014
Accrued interest receivable	726
Bank-owned life insurance	7,419
Intangibles	2,015
Deferred tax liability	(76		)
Other assets	2,636
Time deposits	(79,223		)
Deposits other than time deposits	(197,733		)
Borrowings	(2,766		)
Accrued interest payable	(103		)
Other liabilities	(4,892		)
				28,540
Goodwill resulting from Luzerne National Bank Corporation Merger				$	14,072

Schedule of the current year and estimated future amortization expense for the core deposit and trade name intangible

As of June 30, 2013, the current year and estimated future amortization expense for the core deposit and trade name intangible was:

(In Thousands)
2013	$	214
2014	345
2015	308
2016	272
2017	235
2018	198
2019	162
2020	125
2021	89
2022	52
2023	15
	$	2,015

Schedule of Actual and Pro Formas information

			Pro Formas
	Actual from Acquisition Date		Six Months Ended June 30,
(In Thousands, Except Per Share Data)	Through June 30, 2013		2013		2012
Net interest income	$	1,049	$	21,546	$	20,771
Non-interest income	137		7,090		5,995
Net income	299		6,212		8,292
Pro forma earnings per share:
Basic			$	1.29	$	1.72
Diluted			1.29		1.72