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 20, 2016 | ||
By: | /s/ Brian L. Knepp | |
Brian L. Knepp | ||
Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release, dated April 20, 2016, of Penns Woods Bancorp, Inc. announcing earnings for the period ended March 31, 2016. |
• | Net income from core operations (“operating earnings”), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains, decreased to $2,764,000 for the three months ended March 31, 2016 compared to $2,919,000 for the same period of 2015. The 2015 period included non-recurring gains on the sale of other real estate owned of $270,000. In addition, the investment portfolio has declined $71,533,000 from March 31, 2015 to March 31, 2016 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, 2016 were $0.58 basic and dilutive compared to $0.61 basic and dilutive for the same period of 2015. |
• | Return on average assets was 0.94% for the three months ended March 31, 2016 compared to 1.06% for the corresponding period of 2015. |
• | Return on average equity was 8.95% for the three months ended March 31, 2016 compared to 9.76% for the corresponding period of 2015. |
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) | 2016 | 2015 | % Change | ||||||||
ASSETS | |||||||||||
Noninterest-bearing balances | $ | 22,371 | $ | 20,871 | 7.19 | % | |||||
Interest-bearing balances in other financial institutions | 24,754 | 901 | 2,647.39 | % | |||||||
Total cash and cash equivalents | 47,125 | 21,772 | 116.45 | % | |||||||
Investment securities, available for sale, at fair value | 153,709 | 225,302 | (31.78 | )% | |||||||
Investment securities, trading | 60 | — | 100.00 | % | |||||||
Loans held for sale | 514 | 1,063 | (51.65 | )% | |||||||
Loans | 1,041,252 | 943,870 | 10.32 | % | |||||||
Allowance for loan losses | (12,382 | ) | (10,826 | ) | 14.37 | % | |||||
Loans, net | 1,028,870 | 933,044 | 10.27 | % | |||||||
Premises and equipment, net | 22,158 | 20,847 | 6.29 | % | |||||||
Accrued interest receivable | 3,878 | 4,326 | (10.36 | )% | |||||||
Bank-owned life insurance | 26,867 | 26,165 | 2.68 | % | |||||||
Investment in limited partnerships | 746 | 1,395 | (46.52 | )% | |||||||
Goodwill | 17,104 | 17,104 | — | % | |||||||
Intangibles | 2,078 | 1,373 | 51.35 | % | |||||||
Deferred tax asset | 8,426 | 7,801 | 8.01 | % | |||||||
Other assets | 6,602 | 8,641 | (23.60 | )% | |||||||
TOTAL ASSETS | $ | 1,318,137 | $ | 1,268,833 | 3.89 | % | |||||
LIABILITIES | |||||||||||
Interest-bearing deposits | $ | 790,219 | $ | 750,258 | 5.33 | % | |||||
Noninterest-bearing deposits | 269,362 | 246,231 | 9.39 | % | |||||||
Total deposits | 1,059,581 | 996,489 | 6.33 | % | |||||||
Short-term borrowings | 15,874 | 30,625 | (48.17 | )% | |||||||
Long-term borrowings | 91,025 | 86,176 | 5.63 | % | |||||||
Accrued interest payable | 439 | 439 | — | % | |||||||
Other liabilities | 13,555 | 18,100 | (25.11 | )% | |||||||
TOTAL LIABILITIES | 1,180,474 | 1,131,829 | 4.30 | % | |||||||
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; 5,005,534 and 5,003,169 shares issued | 41,713 | 41,693 | 0.05 | % | |||||||
Additional paid-in capital | 50,004 | 49,914 | 0.18 | % | |||||||
Retained earnings | 58,888 | 54,205 | 8.64 | % | |||||||
Accumulated other comprehensive loss: | |||||||||||
Net unrealized gain on available for sale securities | 1,324 | 3,291 | (59.77 | )% | |||||||
Defined benefit plan | (4,032 | ) | (4,597 | ) | 12.29 | % | |||||
Treasury stock at cost, 272,452 and 207,444 shares | (10,234 | ) | (7,502 | ) | 36.42 | % | |||||
TOTAL SHAREHOLDERS’ EQUITY | 137,663 | 137,004 | 0.48 | % | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,318,137 | $ | 1,268,833 | 3.89 | % |
Three Months Ended March 31, | |||||||||||
(In Thousands, Except Per Share Data) | 2016 | 2015 | % Change | ||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||
Loans including fees | $ | 10,355 | $ | 9,323 | 11.07 | % | |||||
Investment securities: | |||||||||||
Taxable | 622 | 1,014 | (38.66 | )% | |||||||
Tax-exempt | 475 | 767 | (38.07 | )% | |||||||
Dividend and other interest income | 274 | 293 | (6.48 | )% | |||||||
TOTAL INTEREST AND DIVIDEND INCOME | 11,726 | 11,397 | 2.89 | % | |||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 834 | 743 | 12.25 | % | |||||||
Short-term borrowings | 26 | 19 | 36.84 | % | |||||||
Long-term borrowings | 492 | 524 | (6.11 | )% | |||||||
TOTAL INTEREST EXPENSE | 1,352 | 1,286 | 5.13 | % | |||||||
NET INTEREST INCOME | 10,374 | 10,111 | 2.60 | % | |||||||
PROVISION FOR LOAN LOSSES | 350 | 700 | (50.00 | )% | |||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,024 | 9,411 | 6.51 | % | |||||||
NON-INTEREST INCOME: | |||||||||||
Service charges | 532 | 553 | (3.80 | )% | |||||||
Securities gains, available for sale | 435 | 661 | (34.19 | )% | |||||||
Securities gains, trading | 40 | — | n/a | ||||||||
Bank-owned life insurance | 184 | 188 | (2.13 | )% | |||||||
Gain on sale of loans | 467 | 299 | 56.19 | % | |||||||
Insurance commissions | 206 | 234 | (11.97 | )% | |||||||
Brokerage commissions | 255 | 245 | 4.08 | % | |||||||
Other | 878 | 1,080 | (18.70 | )% | |||||||
TOTAL NON-INTEREST INCOME | 2,997 | 3,260 | (8.07 | )% | |||||||
NON-INTEREST EXPENSE: | |||||||||||
Salaries and employee benefits | 4,580 | 4,470 | 2.46 | % | |||||||
Occupancy | 541 | 628 | (13.85 | )% | |||||||
Furniture and equipment | 701 | 595 | 17.82 | % | |||||||
Pennsylvania shares tax | 258 | 224 | 15.18 | % | |||||||
Amortization of investments in limited partnerships | 152 | 165 | (7.88 | )% | |||||||
Federal Deposit Insurance Corporation deposit insurance | 232 | 215 | 7.91 | % | |||||||
Marketing | 210 | 129 | 62.79 | % | |||||||
Intangible amortization | 87 | 82 | 6.10 | % | |||||||
Other | 2,300 | 1,960 | 17.35 | % | |||||||
TOTAL NON-INTEREST EXPENSE | 9,061 | 8,468 | 7.00 | % | |||||||
INCOME BEFORE INCOME TAX PROVISION | 3,960 | 4,203 | (5.78 | )% | |||||||
INCOME TAX PROVISION | 882 | 848 | 4.01 | % | |||||||
NET INCOME | $ | 3,078 | $ | 3,355 | (8.26 | )% | |||||
EARNINGS PER SHARE - BASIC AND DILUTED | $ | 0.65 | $ | 0.70 | (7.14 | )% | |||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED | 4,740,503 | 4,801,505 | (1.27 | )% | |||||||
DIVIDENDS DECLARED PER SHARE | $ | 0.47 | $ | 0.47 | — | % |
Three Months Ended | ||||||||||||||||||||||
March 31, 2016 | March 31, 2015 | |||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Tax-exempt loans | $ | 54,014 | $ | 535 | 3.98 | % | $ | 36,183 | $ | 383 | 4.30 | % | ||||||||||
All other loans | 988,632 | 10,002 | 4.07 | % | 891,877 | 9,070 | 4.12 | % | ||||||||||||||
Total loans | 1,042,646 | 10,537 | 4.06 | % | 928,060 | 9,453 | 4.13 | % | ||||||||||||||
Taxable securities | 99,032 | 885 | 3.57 | % | 143,421 | 1,303 | 3.63 | % | ||||||||||||||
Tax-exempt securities | 63,373 | 720 | 4.54 | % | 87,825 | 1,162 | 5.29 | % | ||||||||||||||
Total securities | 162,405 | 1,605 | 3.95 | % | 231,246 | 2,465 | 4.26 | % | ||||||||||||||
Interest-bearing deposits | 12,693 | 11 | 0.35 | % | 6,539 | 4 | 0.25 | % | ||||||||||||||
Total interest-earning assets | 1,217,744 | 12,153 | 4.01 | % | 1,165,845 | 11,922 | 4.14 | % | ||||||||||||||
Other assets | 96,462 | 96,043 | ||||||||||||||||||||
TOTAL ASSETS | $ | 1,314,206 | $ | 1,261,888 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||||
Savings | $ | 148,856 | 14 | 0.04 | % | $ | 141,762 | 14 | 0.04 | % | ||||||||||||
Super Now deposits | 188,147 | 125 | 0.27 | % | 190,438 | 129 | 0.27 | % | ||||||||||||||
Money market deposits | 219,240 | 139 | 0.25 | % | 205,243 | 136 | 0.27 | % | ||||||||||||||
Time deposits | 220,554 | 556 | 1.01 | % | 216,775 | 464 | 0.87 | % | ||||||||||||||
Total interest-bearing deposits | 776,797 | 834 | 0.43 | % | 754,218 | 743 | 0.40 | % | ||||||||||||||
Short-term borrowings | 28,410 | 26 | 0.36 | % | 28,229 | 19 | 0.27 | % | ||||||||||||||
Long-term borrowings | 91,025 | 492 | 2.14 | % | 84,009 | 524 | 2.50 | % | ||||||||||||||
Total borrowings | 119,435 | 518 | 1.72 | % | 112,238 | 543 | 1.94 | % | ||||||||||||||
Total interest-bearing liabilities | 896,232 | 1,352 | 0.60 | % | 866,456 | 1,286 | 0.60 | % | ||||||||||||||
Demand deposits | 265,053 | 240,750 | ||||||||||||||||||||
Other liabilities | 15,406 | 17,145 | ||||||||||||||||||||
Shareholders’ equity | 137,515 | 137,537 | ||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,314,206 | $ | 1,261,888 | ||||||||||||||||||
Interest rate spread | 3.41 | % | 3.54 | % | ||||||||||||||||||
Net interest income/margin | $ | 10,801 | 3.57 | % | $ | 10,636 | 3.69 | % |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Total interest income | $ | 11,726 | $ | 11,397 | ||||
Total interest expense | 1,352 | 1,286 | ||||||
Net interest income | 10,374 | 10,111 | ||||||
Tax equivalent adjustment | 427 | 525 | ||||||
Net interest income (fully taxable equivalent) | $ | 10,801 | $ | 10,636 |
(Dollars in Thousands, Except Per Share Data) | Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Operating Data | ||||||||||||||||||||
Net income | $ | 3,078 | $ | 3,746 | $ | 3,364 | $ | 3,433 | $ | 3,355 | ||||||||||
Net interest income | 10,374 | 10,338 | 10,234 | 10,222 | 10,111 | |||||||||||||||
Provision for loan losses | 350 | 480 | 520 | 600 | 700 | |||||||||||||||
Net security gains | 475 | 894 | 493 | 522 | 661 | |||||||||||||||
Non-interest income, excluding net security gains | 2,522 | 2,417 | 2,644 | 2,535 | 2,599 | |||||||||||||||
Non-interest expense | 9,061 | 8,317 | 8,530 | 8,421 | 8,468 | |||||||||||||||
Performance Statistics | ||||||||||||||||||||
Net interest margin | 3.57 | % | 3.55 | % | 3.55 | % | 3.64 | % | 3.69 | % | ||||||||||
Annualized return on average assets | 0.94 | % | 1.15 | % | 1.04 | % | 1.07 | % | 1.06 | % | ||||||||||
Annualized return on average equity | 8.95 | % | 10.73 | % | 9.89 | % | 10.05 | % | 9.76 | % | ||||||||||
Annualized net loan charge-offs (recoveries) to average loans | — | % | (0.03 | )% | 0.12 | % | 0.07 | % | 0.20 | % | ||||||||||
Net charge-offs (recoveries) | 12 | (75 | ) | 296 | 161 | 453 | ||||||||||||||
Efficiency ratio | 69.6 | % | 64.6 | % | 65.7 | % | 65.3 | % | 66.0 | % | ||||||||||
Per Share Data | ||||||||||||||||||||
Basic earnings per share | $ | 0.65 | $ | 0.79 | $ | 0.71 | $ | 0.72 | $ | 0.70 | ||||||||||
Diluted earnings per share | 0.65 | 0.79 | 0.71 | 0.72 | 0.70 | |||||||||||||||
Dividend declared per share | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | |||||||||||||||
Book value | 29.09 | 28.71 | 28.54 | 28.33 | 28.57 | |||||||||||||||
Common stock price: | ||||||||||||||||||||
High | 41.32 | 45.28 | 44.56 | 48.28 | 48.91 | |||||||||||||||
Low | 36.73 | 40.47 | 40.41 | 41.84 | 44.41 | |||||||||||||||
Close | 38.54 | 42.46 | 40.92 | 44.09 | 48.91 | |||||||||||||||
Weighted average common shares: | ||||||||||||||||||||
Basic | 4,741 | 4,747 | 4,762 | 4,780 | 4,802 | |||||||||||||||
Fully Diluted | 4,741 | 4,747 | 4,762 | 4,780 | 4,802 | |||||||||||||||
End-of-period common shares: | ||||||||||||||||||||
Issued | 5,006 | 5,005 | 5,004 | 5,004 | 5,003 | |||||||||||||||
Treasury | 272 | 258 | 254 | 238 | 207 |
(Dollars in Thousands, Except Per Share Data) | Quarter Ended | |||||||||||||||||||
3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | ||||||||||||||||
Financial Condition Data: | ||||||||||||||||||||
General | ||||||||||||||||||||
Total assets | $ | 1,318,137 | $ | 1,320,057 | $ | 1,299,292 | $ | 1,291,812 | $ | 1,268,833 | ||||||||||
Loans, net | 1,028,870 | 1,033,163 | 990,164 | 966,613 | 933,044 | |||||||||||||||
Goodwill | 17,104 | 17,104 | 17,104 | 17,104 | 17,104 | |||||||||||||||
Intangibles | 2,078 | 1,240 | 1,316 | 1,294 | 1,373 | |||||||||||||||
Total deposits | 1,059,581 | 1,031,880 | 1,004,801 | 1,007,468 | 996,489 | |||||||||||||||
Noninterest-bearing | 269,362 | 280,083 | 247,848 | 244,502 | 246,231 | |||||||||||||||
Savings | 153,217 | 144,561 | 143,224 | 143,415 | 143,222 | |||||||||||||||
NOW | 190,168 | 176,078 | 188,444 | 188,092 | 186,788 | |||||||||||||||
Money Market | 226,659 | 209,782 | 204,475 | 211,412 | 204,352 | |||||||||||||||
Time Deposits | 220,175 | 221,376 | 220,810 | 220,047 | 215,896 | |||||||||||||||
Total interest-bearing deposits | 790,219 | 751,797 | 756,953 | 762,966 | 750,258 | |||||||||||||||
Core deposits* | 839,406 | 810,504 | 783,991 | 787,421 | 780,593 | |||||||||||||||
Shareholders’ equity | 137,663 | 136,279 | 135,577 | 134,998 | 137,004 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Non-performing loans | $ | 11,648 | $ | 9,446 | $ | 8,608 | $ | 9,689 | $ | 11,157 | ||||||||||
Non-performing loans to total assets | 0.88 | % | 0.72 | % | 0.66 | % | 0.75 | % | 0.88 | % | ||||||||||
Allowance for loan losses | 12,382 | 12,044 | 11,489 | 11,265 | 10,826 | |||||||||||||||
Allowance for loan losses to total loans | 1.19 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||
Allowance for loan losses to non-performing loans | 106.30 | % | 127.50 | % | 133.47 | % | 116.27 | % | 97.03 | % | ||||||||||
Non-performing loans to total loans | 1.12 | % | 0.90 | % | 0.86 | % | 0.99 | % | 1.18 | % | ||||||||||
Capitalization | ||||||||||||||||||||
Shareholders’ equity to total assets | 10.44 | % | 10.32 | % | 10.43 | % | 10.45 | % | 10.80 | % |
Three Months Ended March 31, | ||||||||
(Dollars in Thousands, Except Per Share Data) | 2016 | 2015 | ||||||
GAAP net income | $ | 3,078 | $ | 3,355 | ||||
Less: net securities gains, net of tax | 314 | 436 | ||||||
Non-GAAP operating earnings | $ | 2,764 | $ | 2,919 | ||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Return on average assets (ROA) | 0.94 | % | 1.06 | % | ||||
Less: net securities gains, net of tax | 0.10 | % | 0.13 | % | ||||
Non-GAAP operating ROA | 0.84 | % | 0.93 | % | ||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Return on average equity (ROE) | 8.95 | % | 9.76 | % | ||||
Less: net securities gains, net of tax | 0.91 | % | 1.27 | % | ||||
Non-GAAP operating ROE | 8.04 | % | 8.49 | % | ||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Basic earnings per share (EPS) | $ | 0.65 | $ | 0.70 | ||||
Less: net securities gains, net of tax | 0.07 | 0.09 | ||||||
Non-GAAP basic operating EPS | $ | 0.58 | $ | 0.61 | ||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Dilutive EPS | $ | 0.65 | $ | 0.70 | ||||
Less: net securities gains, net of tax | 0.07 | 0.09 | ||||||
Non-GAAP dilutive operating EPS | $ | 0.58 | $ | 0.61 |
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