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, Williamsport, Pennsylvania | 17703-0967 | |
(Address of principal executive offices) | (Zip Code) |
(570) 322-1111 Registrant's telephone number, including area code |
N/A |
(Former name or former address, if changed since last report.) |
PENNS WOODS BANCORP, INC. | ||
Dated: April 17, 2015 | ||
By: | /s/ Brian L. Knepp | |
Brian L. Knepp | ||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release, dated April 17, 2015, of Penns Woods Bancorp, Inc. announcing earnings for the period ended March 31, 2015. |
• | Net income from core operations (“operating earnings”), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains and bank owned life insurance gains on death benefits, decreased to $2,919,000 for the three months ended March 31, 2015 compared to $3,036,000 for the same period of 2014. Impacting the three month period was an increase in the provision for loan losses of $215,000, due to the level of charge-offs related to commercial loans. In addition, the investment portfolio has declined $50,731,000 from March 31, 2014 to March 31, 2015 as part of our strategy to position the balance sheet for a rising rate environment. |
• | Operating earnings per share for the three months ended March 31, 2015 were $0.61 basic and dilutive compared to $0.63 basic and dilutive for the same period of 2014. |
• | Return on average assets was 1.06% for the three months ended March 31, 2015 compared to 1.15% for the corresponding period of 2014. |
• | Return on average equity was 9.76% for the three months ended March 31, 2015 compared to 10.58% for the corresponding period of 2014. |
Contact: | Richard A. Grafmyre, President and Chief Executive Officer | |
300 Market Street | ||
Williamsport, PA 17701 | ||
570-322-1111 | e-mail: pwod@pwod.com |
March 31, | |||||||||||
(In Thousands, Except Share Data) | 2015 | 2014 | % Change | ||||||||
ASSETS | |||||||||||
Noninterest-bearing balances | $ | 20,871 | $ | 24,913 | (16.22 | )% | |||||
Interest-bearing balances in other financial institutions | 901 | 14,582 | (93.82 | )% | |||||||
Federal funds sold | — | 168 | (100.00 | )% | |||||||
Total cash and cash equivalents | 21,772 | 39,663 | (45.11 | )% | |||||||
Investment securities, available for sale, at fair value | 225,302 | 276,033 | (18.38 | )% | |||||||
Loans held for sale | 1,063 | 1,647 | (35.46 | )% | |||||||
Loans | 943,870 | 820,611 | 15.02 | % | |||||||
Allowance for loan losses | (10,826 | ) | (8,520 | ) | 27.07 | % | |||||
Loans, net | 933,044 | 812,091 | 14.89 | % | |||||||
Premises and equipment, net | 20,847 | 20,418 | 2.10 | % | |||||||
Accrued interest receivable | 4,326 | 4,514 | (4.16 | )% | |||||||
Bank-owned life insurance | 26,165 | 25,430 | 2.89 | % | |||||||
Investment in limited partnerships | 1,395 | 2,056 | (32.15 | )% | |||||||
Goodwill | 17,104 | 17,104 | — | % | |||||||
Intangibles | 1,373 | 1,709 | (19.66 | )% | |||||||
Deferred tax asset | 7,801 | 7,984 | (2.29 | )% | |||||||
Other assets | 8,641 | 8,488 | 1.80 | % | |||||||
TOTAL ASSETS | $ | 1,268,833 | $ | 1,217,137 | 4.25 | % | |||||
LIABILITIES | |||||||||||
Interest-bearing deposits | $ | 750,258 | $ | 764,286 | (1.84 | )% | |||||
Noninterest-bearing deposits | 246,231 | 218,740 | 12.57 | % | |||||||
Total deposits | 996,489 | 983,026 | 1.37 | % | |||||||
Short-term borrowings | 30,625 | 14,127 | 116.78 | % | |||||||
Long-term borrowings | 86,176 | 71,202 | 21.03 | % | |||||||
Accrued interest payable | 439 | 388 | 13.14 | % | |||||||
Other liabilities | 18,100 | 16,089 | 12.50 | % | |||||||
TOTAL LIABILITIES | 1,131,829 | 1,084,832 | 4.33 | % | |||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued | — | — | n/a | ||||||||
Common stock, par value $8.33, 15,000,000 shares authorized; 5,003,169 and 5,000,561 shares issued | 41,693 | 41,671 | 0.05 | % | |||||||
Additional paid-in capital | 49,914 | 49,823 | 0.18 | % | |||||||
Retained earnings | 54,205 | 48,758 | 11.17 | % | |||||||
Accumulated other comprehensive loss: | |||||||||||
Net unrealized gain on available for sale securities | 3,291 | 1,088 | 202.48 | % | |||||||
Defined benefit plan | (4,597 | ) | (2,725 | ) | (68.70 | )% | |||||
Treasury stock at cost, 207,444 and 180,596 shares | (7,502 | ) | (6,310 | ) | 18.89 | % | |||||
TOTAL SHAREHOLDERS’ EQUITY | 137,004 | 132,305 | 3.55 | % | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,268,833 | $ | 1,217,137 | 4.25 | % |
Three Months Ended March 31, | |||||||||||
(In Thousands, Except Per Share Data) | 2015 | 2014 | % Change | ||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||
Loans including fees | $ | 9,323 | $ | 8,813 | 5.79 | % | |||||
Investment securities: | |||||||||||
Taxable | 1,014 | 1,458 | (30.45 | )% | |||||||
Tax-exempt | 767 | 931 | (17.62 | )% | |||||||
Dividend and other interest income | 293 | 127 | 130.71 | % | |||||||
TOTAL INTEREST AND DIVIDEND INCOME | 11,397 | 11,329 | 0.60 | % | |||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 743 | 758 | (1.98 | )% | |||||||
Short-term borrowings | 19 | 15 | 26.67 | % | |||||||
Long-term borrowings | 524 | 469 | 11.73 | % | |||||||
TOTAL INTEREST EXPENSE | 1,286 | 1,242 | 3.54 | % | |||||||
NET INTEREST INCOME | 10,111 | 10,087 | 0.24 | % | |||||||
PROVISION FOR LOAN LOSSES | 700 | 485 | 44.33 | % | |||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,411 | 9,602 | (1.99 | )% | |||||||
NON-INTEREST INCOME: | |||||||||||
Service charges | 553 | 595 | (7.06 | )% | |||||||
Securities gains, net | 661 | 393 | 68.19 | % | |||||||
Bank-owned life insurance | 188 | 370 | (49.19 | )% | |||||||
Gain on sale of loans | 299 | 290 | 3.10 | % | |||||||
Insurance commissions | 234 | 420 | (44.29 | )% | |||||||
Brokerage commissions | 245 | 271 | (9.59 | )% | |||||||
Other | 1,080 | 872 | 23.85 | % | |||||||
TOTAL NON-INTEREST INCOME | 3,260 | 3,211 | 1.53 | % | |||||||
NON-INTEREST EXPENSE: | |||||||||||
Salaries and employee benefits | 4,470 | 4,503 | (0.73 | )% | |||||||
Occupancy | 628 | 630 | (0.32 | )% | |||||||
Furniture and equipment | 595 | 671 | (11.33 | )% | |||||||
Pennsylvania shares tax | 224 | 244 | (8.20 | )% | |||||||
Amortization of investments in limited partnerships | 165 | 165 | — | % | |||||||
Federal Deposit Insurance Corporation deposit insurance | 215 | 178 | 20.79 | % | |||||||
Marketing | 129 | 110 | 17.27 | % | |||||||
Intangible amortization | 82 | 92 | (10.87 | )% | |||||||
Other | 1,960 | 2,050 | (4.39 | )% | |||||||
TOTAL NON-INTEREST EXPENSE | 8,468 | 8,643 | (2.02 | )% | |||||||
INCOME BEFORE INCOME TAX PROVISION | 4,203 | 4,170 | 0.79 | % | |||||||
INCOME TAX PROVISION | 848 | 701 | 20.97 | % | |||||||
NET INCOME | $ | 3,355 | $ | 3,469 | (3.29 | )% | |||||
EARNINGS PER SHARE - BASIC AND DILUTED | $ | 0.70 | $ | 0.72 | (2.78 | )% | |||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED | 4,801,505 | 4,819,575 | (0.37 | )% | |||||||
DIVIDENDS DECLARED PER SHARE | $ | 0.47 | $ | 0.47 | — | % |
Three Months Ended | ||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Tax-exempt loans | $ | 36,183 | $ | 383 | 4.30 | % | $ | 27,190 | $ | 306 | 4.57 | % | ||||||||||
All other loans | 891,877 | 9,070 | 4.12 | % | 770,656 | 8,611 | 4.53 | % | ||||||||||||||
Total loans | 928,060 | 9,453 | 4.13 | % | 797,846 | 8,917 | 4.53 | % | ||||||||||||||
Federal funds sold | — | — | — | % | 562 | — | — | % | ||||||||||||||
Taxable securities | 143,421 | 1,303 | 3.63 | % | 176,725 | 1,577 | 3.57 | % | ||||||||||||||
Tax-exempt securities | 87,825 | 1,162 | 5.29 | % | 97,131 | 1,411 | 5.81 | % | ||||||||||||||
Total securities | 231,246 | 2,465 | 4.26 | % | 273,856 | 2,988 | 4.36 | % | ||||||||||||||
Interest-bearing deposits | 6,539 | 4 | 0.25 | % | 16,043 | 8 | 0.20 | % | ||||||||||||||
Total interest-earning assets | 1,165,845 | 11,922 | 4.14 | % | 1,088,307 | 11,913 | 4.42 | % | ||||||||||||||
Other assets | 96,043 | 116,465 | ||||||||||||||||||||
TOTAL ASSETS | $ | 1,261,888 | $ | 1,204,772 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||||
Savings | $ | 141,762 | 14 | 0.04 | % | $ | 139,756 | 32 | 0.09 | % | ||||||||||||
Super Now deposits | 190,438 | 129 | 0.27 | % | 176,806 | 157 | 0.36 | % | ||||||||||||||
Money market deposits | 205,243 | 136 | 0.27 | % | 206,812 | 133 | 0.26 | % | ||||||||||||||
Time deposits | 216,775 | 464 | 0.87 | % | 232,182 | 436 | 0.76 | % | ||||||||||||||
Total interest-bearing deposits | 754,218 | 743 | 0.40 | % | 755,556 | 758 | 0.41 | % | ||||||||||||||
Short-term borrowings | 28,229 | 19 | 0.27 | % | 20,101 | 15 | 0.30 | % | ||||||||||||||
Long-term borrowings | 84,009 | 524 | 2.50 | % | 71,202 | 469 | 2.63 | % | ||||||||||||||
Total borrowings | 112,238 | 543 | 1.94 | % | 91,303 | 484 | 2.12 | % | ||||||||||||||
Total interest-bearing liabilities | 866,456 | 1,286 | 0.60 | % | 846,859 | 1,242 | 0.59 | % | ||||||||||||||
Demand deposits | 240,750 | 212,152 | ||||||||||||||||||||
Other liabilities | 17,145 | 14,608 | ||||||||||||||||||||
Shareholders’ equity | 137,537 | 131,153 | ||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,261,888 | $ | 1,204,772 | ||||||||||||||||||
Interest rate spread | 3.54 | % | 3.83 | % | ||||||||||||||||||
Net interest income/margin | $ | 10,636 | 3.69 | % | $ | 10,671 | 3.96 | % |
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Total interest income | $ | 11,397 | $ | 11,329 | ||||
Total interest expense | 1,286 | 1,242 | ||||||
Net interest income | 10,111 | 10,087 | ||||||
Tax equivalent adjustment | 525 | 584 | ||||||
Net interest income (fully taxable equivalent) | $ | 10,636 | $ | 10,671 |
(Dollars in Thousands, Except Per Share Data) | Quarter Ended | |||||||||||||||||||
3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | ||||||||||||||||
Operating Data | ||||||||||||||||||||
Net income | $ | 3,355 | $ | 2,883 | $ | 4,793 | $ | 3,463 | $ | 3,469 | ||||||||||
Net interest income | 10,111 | 10,208 | 10,218 | 10,131 | 10,087 | |||||||||||||||
Provision for loan losses | 700 | 1,605 | 460 | 300 | 485 | |||||||||||||||
Net security gains | 661 | 490 | 2,145 | 487 | 393 | |||||||||||||||
Non-interest income, ex. net security gains | 2,599 | 2,954 | 2,779 | 2,442 | 2,818 | |||||||||||||||
Non-interest expense | 8,468 | 8,512 | 8,313 | 8,422 | 8,643 | |||||||||||||||
Performance Statistics | ||||||||||||||||||||
Net interest margin | 3.69 | % | 3.73 | % | 3.78 | % | 3.83 | % | 3.96 | % | ||||||||||
Annualized return on average assets | 1.06 | % | 0.93 | % | 1.56 | % | 1.13 | % | 1.15 | % | ||||||||||
Annualized return on average equity | 9.76 | % | 8.33 | % | 13.95 | % | 10.29 | % | 10.58 | % | ||||||||||
Annualized net loan charge-offs to average loans | 0.20 | % | 0.12 | % | 0.01 | % | — | % | 1.06 | % | ||||||||||
Net charge-offs | 453 | 276 | 21 | 9 | 2,109 | |||||||||||||||
Efficiency ratio | 66.0 | % | 64.0 | % | 63.3 | % | 66.3 | % | 66.3 | % | ||||||||||
Per Share Data | ||||||||||||||||||||
Basic earnings per share | $ | 0.70 | $ | 0.60 | $ | 0.99 | $ | 0.72 | $ | 0.72 | ||||||||||
Diluted earnings per share | 0.70 | 0.60 | 0.99 | 0.72 | 0.72 | |||||||||||||||
Dividend declared per share | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | |||||||||||||||
Book value | 28.57 | 28.30 | 28.49 | 28.17 | 27.45 | |||||||||||||||
Common stock price: | ||||||||||||||||||||
High | 48.91 | 49.26 | 48.79 | 48.37 | 50.95 | |||||||||||||||
Low | 44.41 | 42.18 | 42.25 | 43.21 | 43.19 | |||||||||||||||
Close | 48.91 | 49.26 | 42.25 | 47.10 | 48.78 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||||||
Basic | 4,802 | 4,805 | 4,820 | 4,820 | 4,820 | |||||||||||||||
Fully Diluted | 4,802 | 4,805 | 4,820 | 4,820 | 4,820 | |||||||||||||||
End-of-period common shares: | ||||||||||||||||||||
Issued | 5,003 | 5,003 | 5,002 | 5,001 | 5,001 | |||||||||||||||
Treasury | 207 | 198 | 192 | 181 | 181 |
Quarter Ended | ||||||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | |||||||||||||||
Financial Condition Data: | ||||||||||||||||||||
General | ||||||||||||||||||||
Total assets | $ | 1,268,833 | $ | 1,245,011 | $ | 1,227,122 | $ | 1,222,847 | $ | 1,217,137 | ||||||||||
Loans, net | 933,044 | 905,000 | 881,477 | 847,521 | 812,091 | |||||||||||||||
Goodwill | 17,104 | 17,104 | 17,104 | 17,104 | 17,104 | |||||||||||||||
Intangibles | 1,373 | 1,456 | 1,538 | 1,621 | 1,709 | |||||||||||||||
Total deposits | 996,489 | 981,419 | 989,128 | 981,826 | 983,026 | |||||||||||||||
Noninterest-bearing | 246,231 | 243,378 | 232,588 | 228,758 | 218,740 | |||||||||||||||
Savings | 143,222 | 139,278 | 141,170 | 141,362 | 142,030 | |||||||||||||||
NOW | 186,788 | 177,970 | 183,056 | 176,066 | 191,191 | |||||||||||||||
Money Market | 204,352 | 204,535 | 213,725 | 212,782 | 202,893 | |||||||||||||||
Time Deposits | 215,896 | 216,258 | 218,589 | 222,858 | 228,172 | |||||||||||||||
Total interest-bearing deposits | 750,258 | 738,041 | 756,540 | 753,068 | 764,286 | |||||||||||||||
Core deposits* | 780,593 | 765,161 | 770,539 | 758,968 | 754,854 | |||||||||||||||
Shareholders’ equity | 137,004 | 135,967 | 137,004 | 135,802 | 132,305 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Non-performing assets | $ | 11,157 | $ | 12,248 | $ | 12,294 | $ | 11,979 | $ | 10,614 | ||||||||||
Non-performing assets to total assets | 0.88 | % | 0.98 | % | 1.00 | % | 0.98 | % | 0.87 | % | ||||||||||
Allowance for loan losses | 10,826 | 10,579 | 9,250 | 8,811 | 8,520 | |||||||||||||||
Allowance for loan losses to total loans | 1.15 | % | 1.16 | % | 1.04 | % | 1.03 | % | 1.04 | % | ||||||||||
Allowance for loan losses to non-performing loans | 97.03 | % | 86.37 | % | 75.24 | % | 73.55 | % | 80.27 | % | ||||||||||
Non-performing loans to total loans | 1.18 | % | 1.34 | % | 1.38 | % | 1.40 | % | 1.29 | % | ||||||||||
Capitalization | ||||||||||||||||||||
Shareholders’ equity to total assets | 10.80 | % | 10.92 | % | 11.16 | % | 11.11 | % | 10.87 | % |
Three Months Ended March 31, | ||||||||
(Dollars in Thousands, Except Per Share Data) | 2015 | 2014 | ||||||
GAAP net income | $ | 3,355 | $ | 3,469 | ||||
Less: net securities and bank-owned life insurance gains, net of tax | 436 | 433 | ||||||
Non-GAAP operating earnings | $ | 2,919 | $ | 3,036 | ||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Return on average assets (ROA) | 1.06 | % | 1.15 | % | ||||
Less: net securities and bank-owned life insurance gains, net of tax | 0.13 | % | 0.14 | % | ||||
Non-GAAP operating ROA | 0.93 | % | 1.01 | % | ||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Return on average equity (ROE) | 9.76 | % | 10.58 | % | ||||
Less: net securities and bank-owned life insurance gains, net of tax | 1.27 | % | 1.32 | % | ||||
Non-GAAP operating ROE | 8.49 | % | 9.26 | % | ||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic earnings per share (EPS) | $ | 0.70 | $ | 0.72 | ||||
Less: net securities and bank-owned life insurance gains, net of tax | 0.09 | 0.09 | ||||||
Non-GAAP basic operating EPS | $ | 0.61 | $ | 0.63 | ||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Dilutive EPS | $ | 0.70 | $ | 0.72 | ||||
Less: net securities and bank-owned life insurance gains, net of tax | 0.09 | 0.09 | ||||||
Non-GAAP dilutive operating EPS | $ | 0.61 | $ | 0.63 |
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