Exhibit 99.1

Press Release — For Immediate Release

July 21, 2022

Penns Woods Bancorp, Inc. Reports Second Quarter 2022 Earnings

Williamsport, PA — July 21, 2022 - Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

Penns Woods Bancorp, Inc. achieved net income of $7.7 million for the six months ended June 30, 2022, resulting in basic and diluted earnings per share of $1.08.

Highlights

•Net income, as reported under GAAP, for the three and six months ended June 30, 2022 was $4.2 million and $7.7 million, respectively, compared to $3.6 million and $7.0 million for the same periods of 2021. Results for the three and six months ended June 30, 2022 compared to 2021 were impacted by an increase in after-tax securities losses of $154,000 (from a gain of $111,000 to a loss of $43,000) for the three month period and an increase in after-tax securities losses of $296,000 (from a gain of $205,000 to a loss of $91,000) for the six month period. Results for the three and six months ended June 30, 2022 were impacted by additional compensation expense of $183,000 (after-tax $145,000) associated with the voluntary cash settlement of 346,725 outstanding stock options. In addition, an after-tax loss of $201,000 related to a branch closure negatively impacted results for the six months ended June 30, 2022.

•The provision for loan losses decreased $20,000 and $385,000 for the three and six months ended June 30, 2022 to $330,000 and $480,000, respectively, compared to $350,000 and $865,000 for the 2021 periods. The provision for loan losses was elevated during 2021 due primarily to the uncertainty caused by the COVID-19 pandemic.

•Basic and diluted earnings per share for the three and six months ended June 30, 2022 were $0.60 and $1.08. Basic and diluted earnings per share for the three and six months ended June 30, 2021 were $0.51 and $1.00.

•Annualized return on average assets was 0.88% for three months ended June 30, 2022, compared to 0.76% for the corresponding period of 2021. Annualized return on average assets was 0.80% for the six months ended June 30, 2022, compared to 0.75% for the corresponding period of 2021.

•Annualized return on average equity was 10.15% for the three months ended June 30, 2022, compared to 8.70% for the corresponding period of 2021. Annualized return on average equity was 9.20% for the six months ended June 30, 2022, compared to 8.69% for the corresponding period of 2021.

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 $4.3 million for the three months ended June 30, 2022 compared to $3.5 million for the same period of 2021. Core earnings were $7.8 million for the six months ended June 30, 2022, compared to $6.8 million for the same period of 2021. Core earnings per share for the three months ended June 30, 2022 were $0.61 basic and diluted, compared to $0.49 basic and diluted core earnings per share for the same period of 2021. Core earnings per share for the six months ended June 30, 2022 were $1.10 basic and diluted, compared to $0.97 basic and diluted for the same period of 2021. Core return on average assets and core return on average equity were 0.89% and 10.25% for the three months ended June 30, 2022, compared to 0.74% and 8.43% for the corresponding period of 2021. Core return on average assets and core return on average equity were 0.81% and 9.31% for the six months ended June 30, 2022 compared to 0.73% and 8.44% for the corresponding period of 2021. Core earnings for the three and six months ended June 30, 2022 were impacted negatively by an after-tax compensation expense of $145,000 relating to the voluntary cash settlement of 346,725 stock options while the six month period ended June 30, 2022 was also impacted negatively by an after-tax loss of $201,000 relating to a branch closure. A

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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 six months ended June 30, 2022 was 3.12% and 3.03%, compared to 2.78% and 2.83% for the corresponding periods of 2021. The increase in the net interest margin for the three and six month periods was driven by a decline in the rate paid on interest-bearing deposits of 29 and 33 basis points ("bps") as rates paid decreased throughout 2021 and remained at historically low levels during 2022. Leading the decline in the rate paid on interest-bearing deposits were decreases of 98 and 95 bps in the rate paid on time deposits as time deposits issued prior to the COVID-19 pandemic matured. The increase in the earning asset yield was driven by an increase in yield on federal funds sold and interest-bearing deposits due to the rate increases enacted by the Federal Open Market Committee ("FOMC"). For the three and six months ended June 30, 2022 there was an increase in rate on federal funds sold of 57 and 30 bps, respectively, while the rate on interest bearing deposits increased 57 and 26 bps.

Assets

Total assets decreased $3.1 million to $1.9 billion at June 30, 2022 compared to June 30, 2021.  Cash and cash equivalents decreased $176.1 million as interest-bearing accounts in other financial institutions decreased $174.9 million. Net loans increased $151.2 million to $1.5 billion at June 30, 2022 compared to June 30, 2021, as an emphasis was placed on commercial loan growth and customers focused on obtaining funding prior to additional FOMC rate increases. The investment portfolio increased $18.9 million from June 30, 2021 to June 30, 2022 as a portion of the excess cash liquidity was invested primarily into short-term municipal bonds with a maturity of five years or less.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.34% at June 30, 2022 from 0.59% at June 30, 2021 as non-performing loans have decreased to $5.1 million at June 30, 2022 from $7.9 million at June 30, 2021. 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 a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $263,000 for the six months ended June 30, 2022 impacted the allowance for loan losses, which was 0.97% of total loans at June 30, 2022 compared to 1.08% at June 30, 2021.

Deposits

Deposits increased $25.9 million to $1.6 billion at June 30, 2022 compared to June 30, 2021. Noninterest-bearing deposits increased $46.9 million to $524.3 million at June 30, 2022 compared to June 30, 2021.  Driving deposit growth was the continued emphasis on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic. Interest-bearing deposits decreased due to the maturity of higher cost time deposits. The increased level of deposits has allowed for a $28.2 million decrease in long-term borrowings.

Shareholders’ Equity

Shareholders’ equity decreased $781,000 to $166.1 million at June 30, 2022 compared to June 30, 2021.  Accumulated other comprehensive loss of $9.7 million at June 30, 2022 increased from a loss of $1.4 million at June 30, 2021 as a result of a $6.2 million net unrealized loss on available for sale securities at June 30, 2022 compared to a unrealized gain of $4.1 million at June 30, 2021 coupled with a decrease in loss of $2.1 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $23.56 at June 30, 2022 compared to $23.63 at June 30, 2021, and an equity to asset ratio of 8.78% at June 30, 2022 and 8.80% at June 30, 2021. Dividends declared for the six months ended June 30, 2022 and 2021 were $0.64 per share.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen 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.

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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, 2021.

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
	570-322-1111	e-mail: pwod@pwod.com

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PENNS WOODS BANCORP, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	June 30,
(In Thousands, Except Share and Per Share Data)	2022		2021		% Change
ASSETS:
Noninterest-bearing balances	$	26,540	$	27,731	(4.29)	%
Interest-bearing balances in other financial institutions	24,452		199,389		(87.74)	%
Federal funds sold	40,000		40,000		—	%
Total cash and cash equivalents	90,992		267,120		(65.94)	%
Investment debt securities, available for sale, at fair value	192,438		171,783		12.02	%
Investment equity securities, at fair value	1,153		1,269		(9.14)	%
Investment securities, trading	33		43		(23.26)	%
Restricted investment in bank stock, at fair value	13,458		15,120		(10.99)	%
Loans held for sale	3,857		4,927		(21.72)	%
Loans	1,489,132		1,337,947		11.30	%
Allowance for loan losses	(14,393)		(14,438)		0.31	%
Loans, net	1,474,739		1,323,509		11.43	%
Premises and equipment, net	32,671		34,629		(5.65)	%
Accrued interest receivable	8,246		8,363		(1.40)	%
Bank-owned life insurance	34,115		34,005		0.32	%
Investment in limited partnerships	4,901		4,795		2.21	%
Goodwill	17,104		17,104		—	%
Intangibles	396		568		(30.28)	%
Operating lease right of use asset	2,747		2,946		(6.75)	%
Deferred tax asset	5,689		3,624		56.98	%
Other assets	9,267		5,065		82.96	%
TOTAL ASSETS	$	1,891,806	$	1,894,870	(0.16)	%
LIABILITIES:
Interest-bearing deposits	$	1,065,291	$	1,086,352	(1.94)	%
Noninterest-bearing deposits	524,288		477,344		9.83	%
Total deposits	1,589,579		1,563,696		1.66	%
Short-term borrowings	5,464		7,520		(27.34)	%
Long-term borrowings	112,874		141,051		(19.98)	%
Accrued interest payable	452		961		(52.97)	%
Operating lease liability	2,800		2,992		(6.42)	%
Other liabilities	14,583		11,815		23.43	%
TOTAL LIABILITIES	1,725,752		1,728,035		(0.13)	%
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; 7,559,165 and 7,541,627 shares issued; 7,048,940 and 7,061,042 shares outstanding	41,995		41,897		0.23	%
Additional paid-in capital	53,651		53,205		0.84	%
Retained earnings	92,903		85,281		8.94	%
Accumulated other comprehensive (loss) gain:
Net unrealized (loss) gain on available for sale securities	(6,222)		4,085		(252.31)	%
Defined benefit plan	(3,458)		(5,523)		37.39	%
Treasury stock at cost, 510,225 and 480,225	(12,815)		(12,115)		5.78	%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY	166,054		166,830		(0.47)	%
Non-controlling interest	—		5		(100.00)	%
TOTAL SHAREHOLDERS' EQUITY	166,054		166,835		(0.47)	%
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,891,806	$	1,894,870	(0.16)	%

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PENNS WOODS BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	Three Months Ended June 30,							Six Months Ended June 30,
(In Thousands, Except Share and Per Share Data)	2022		2021		% Change			2022		2021		% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	13,620	$	13,099	3.98	%		$	26,658	$	26,444	0.81	%
Investment securities:
Taxable	864		838		3.10	%		1,601		1,657		(3.38)	%
Tax-exempt	194		164		18.29	%		358		335		6.87	%
Dividend and other interest income	506		305		65.90	%		842		565		49.03	%
TOTAL INTEREST AND DIVIDEND INCOME	15,184		14,406		5.40	%		29,459		29,001		1.58	%
INTEREST EXPENSE:
Deposits	710		1,489		(52.32)	%		1,498		3,173		(52.79)	%
Short-term borrowings	2		2		—	%		3		4		(25.00)	%
Long-term borrowings	625		820		(23.78)	%		1,258		1,659		(24.17)	%
TOTAL INTEREST EXPENSE	1,337		2,311		(42.15)	%		2,759		4,836		(42.95)	%
NET INTEREST INCOME	13,847		12,095		14.49	%		26,700		24,165		10.49	%
PROVISION FOR LOAN LOSSES	330		350		(5.71)	%		480		865		(44.51)	%
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	13,517		11,745		15.09	%		26,220		23,300		12.53	%
NON-INTEREST INCOME:
Service charges	509		379		34.30	%		1,004		762		31.76	%
Debt securities (losses) gains, available for sale	(10)		137		(107.30)	%		(12)		275		(104.36)	%
Equity securities (losses) gains	(41)		4		(1,125.00)	%		(99)		(19)		(421.05)	%
Securities (losses) gains, trading	(3)		(1)		(200.00)	%		(4)		3		(233.33)	%
Bank-owned life insurance	161		162		(0.62)	%		331		335		(1.19)	%
Gain on sale of loans	266		670		(60.30)	%	.	611		1,578		(61.28)	%
Insurance commissions	107		150		(28.67)	%		277		307		(9.77)	%
Brokerage commissions	158		207		(23.67)	%		358		426		(15.96)	%
Loan broker income	371		238		55.88	%		912		677		34.71	%
Debit card income	391		398		(1.76)	%		736		778		(5.40)	%
Other	228		565		(59.65)	%		435		401		8.48	%
TOTAL NON-INTEREST INCOME	2,137		2,909		(26.54)	%		4,549		5,523		(17.64)	%
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,141		5,672		8.27	%		12,405		11,270		10.07	%
Occupancy	740		717		3.21	%		1,650		1,693		(2.54)	%
Furniture and equipment	746		971		(23.17)	%		1,638		1,780		(7.98)	%
Software amortization	219		208		5.29	%		472		406		16.26	%
Pennsylvania shares tax	396		372		6.45	%		785		724		8.43	%
Professional fees	582		684		(14.91)	%		1,120		1,267		(11.60)	%
Federal Deposit Insurance Corporation deposit insurance	228		264		(13.64)	%		430		485		(11.34)	%
Marketing	220		140		57.14	%		284		203		39.90	%
Intangible amortization	41		50		(18.00)	%		85		103		(17.48)	%
Other	1,107		1,170		(5.38)	%		2,558		2,268		12.79	%
TOTAL NON-INTEREST EXPENSE	10,420		10,248		1.68	%		21,427		20,199		6.08	%
INCOME BEFORE INCOME TAX PROVISION	5,234		4,406		18.79	%		9,342		8,624		8.33	%
INCOME TAX PROVISION	1,003		813		23.37	%		1,679		1,584		6.00	%
NET INCOME	$	4,231	$	3,593	17.76	%		$	7,663	$	7,040	8.85	%
Earnings attributable to noncontrolling interest	—		5		(100.00)	%		—		11		(100.00)	%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'	$	4,231	$	3,588	17.92	%		$	7,663	$	7,029	9.02	%
EARNINGS PER SHARE - BASIC	$	0.60	$	0.51	17.65	%		$	1.08	$	1.00	8.00	%
EARNINGS PER SHARE - DILUTED	$	0.60	$	0.51	17.65	%		$	1.08	$	1.00	8.00	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC	7,059,045		7,059,667		(0.01)	%		7,065,772		7,057,404		0.12	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED	7,059,045		7,059,667		(0.01)	%		7,065,772		7,057,404		0.12	%

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PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES 

(UNAUDITED)

	Three Months Ended
	June 30, 2022						June 30, 2021
(Dollars in Thousands)	Average  Balance		Interest		Average  Rate		Average  Balance		Interest		Average  Rate
ASSETS:
Tax-exempt loans	$	52,886	$	331	2.51	%	$	46,926	$	334	2.85	%
All other loans	1,394,631		13,358		3.84	%	1,285,853		12,835		4.00	%
Total loans	1,447,517		13,689		3.79	%	1,332,779		13,169		3.96	%
Federal funds sold	48,352		154		1.28	%	25,538		45		0.71	%
Taxable securities	154,484		1,048		2.75	%	148,415		1,051		2.87	%
Tax-exempt securities	45,824		245		2.17	%	36,469		208		2.31	%
Total securities	200,308		1,293		2.62	%	184,884		1,259		2.76	%
Interest-bearing deposits	102,172		168		0.66	%	218,868		48		0.09	%
Total interest-earning assets	1,798,349		15,304		3.42	%	1,762,069		14,521		3.31	%
Other assets	131,117						128,402
TOTAL ASSETS	$	1,929,466					$	1,890,471
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings	$	248,063	24		0.04	%	$	225,625	28		0.05	%
Super Now deposits	388,002		239		0.25	%	285,672		208		0.29	%
Money market deposits	304,636		210		0.28	%	309,749		256		0.33	%
Time deposits	164,301		237		0.58	%	256,345		997		1.56	%
Total interest-bearing deposits	1,105,002		710		0.26	%	1,077,391		1,489		0.55	%
Short-term borrowings	5,636		2		0.14	%	7,047		2		0.11	%
Long-term borrowings	112,901		625		2.22	%	141,076		820		2.33	%
Total borrowings	118,537		627		2.12	%	148,123		822		2.23	%
Total interest-bearing liabilities	1,223,539		1,337		0.44	%	1,225,514		2,311		0.76	%
Demand deposits	518,467						482,513
Other liabilities	20,708						17,384
Shareholders’ equity	166,752						165,060
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,929,466					$	1,890,471
Interest rate spread					2.98	%					2.55	%
Net interest income/margin			$	13,967	3.12	%			$	12,210	2.78	%

	Three Months Ended June 30,
	2022		2021
Total interest income	$	15,184	$	14,406
Total interest expense	1,337		2,311
Net interest income (GAAP)	13,847		12,095
Tax equivalent adjustment	120		115
Net interest income (fully taxable equivalent) (non-GAAP)	$	13,967	$	12,210

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PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES 

(UNAUDITED)

	Six Months Ended
	June 30, 2022						June 30, 2021
(Dollars in Thousands)	Average  Balance		Interest		Average  Rate		Average  Balance		Interest		Average  Rate
ASSETS:
Tax-exempt loans	$	50,775	$	639	2.54	%	$	46,177	$	684	2.99	%
All other loans	1,372,810		26,153		3.84	%	1,289,660		25,904		4.05	%
Total loans	1,423,585		26,792		3.80	%	1,335,837		26,588		4.01	%
Federal funds sold	49,171		247		1.01	%	12,840		45		0.71	%
Taxable securities	149,489		1,968		2.67	%	146,740		2,083		2.88	%
Tax-exempt securities	43,416		453		2.12	%	36,420		424		2.36	%
Total securities	192,905		2,421		2.54	%	183,160		2,507		2.78	%
Interest-bearing deposits	129,704		228		0.35	%	207,495		94		0.09	%
Total interest-earning assets	1,795,365		29,688		3.34	%	1,739,332		29,234		3.39	%
Other assets	128,624						126,418
TOTAL ASSETS	$	1,923,989					$	1,865,750
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Savings	$	244,528	46		0.04	%	$	220,161	72		0.07	%
Super Now deposits	379,496		434		0.23	%	287,444		475		0.33	%
Money market deposits	301,744		396		0.26	%	307,885		523		0.34	%
Time deposits	177,487		622		0.71	%	255,408		2,103		1.66	%
Total interest-bearing deposits	1,103,255		1,498		0.27	%	1,070,898		3,173		0.60	%
Short-term borrowings	5,416		3		0.11	%	6,368		4		0.13	%
Long-term borrowings	114,077		1,258		2.23	%	141,279		1,659		2.37	%
Total borrowings	119,493		1,261		2.13	%	147,647		1,663		2.27	%
Total interest-bearing liabilities	1,222,748		2,759		0.46	%	1,218,545		4,836		0.80	%
Demand deposits	512,441						464,237
Other liabilities	22,184						21,227
Shareholders’ equity	166,616						161,741
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,923,989					$	1,865,750
Interest rate spread					2.88	%					2.59	%
Net interest income/margin			$	26,929	3.03	%			$	24,398	2.83	%

	Six Months Ended June 30,
	2022		2021
Total interest income	$	29,459	$	29,001
Total interest expense	2,759		4,836
Net interest income	26,700		24,165
Tax equivalent adjustment	229		233
Net interest income (fully taxable equivalent) (non-GAAP)	$	26,929	$	24,398

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(Dollars in Thousands, Except Per Share Data, Unaudited)	Quarter Ended
	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Operating Data
Net income	$	4,231		$	3,432		$	4,879		$	4,125		$	3,588
Net interest income	13,847			12,853			12,921			12,632			12,095
Provision for loan losses	330			150			(300)			75			350
Net security (losses) gains	(54)			(61)			360			40			140
Non-interest income, excluding net security gains	2,191			2,473			2,835			2,911			2,769
Non-interest expense	10,420			11,007			10,259			10,447			10,248
Performance Statistics
Net interest margin	3.12		%	2.93		%	2.90		%	2.85		%	2.78		%
Annualized return on average assets	0.88		%	0.72		%	1.02		%	0.86		%	0.76		%
Annualized return on average equity	10.15		%	8.17		%	11.59		%	9.85		%	8.70		%
Annualized net loan (recoveries) charge-offs to average loans	(0.01)		%	0.09		%	0.02		%	(0.01)		%	0.03		%
Net (recoveries) charge-offs	(40)			303			81			(44)			114
Efficiency ratio	64.72		%	71.53		%	64.83		%	66.93		%	68.61		%
Per Share Data
Basic earnings per share	$	0.60		$	0.49		$	0.69		$	0.58		$	0.51
Diluted earnings per share	0.60			0.49			0.69			0.58			0.51
Dividend declared per share	0.32			0.32			0.32			0.32			0.32
Book value	23.56			23.81			24.37			23.84			23.63
Common stock price:
High	24.35			24.67			24.65			24.42			26.51
Low	22.34			23.64			23.50			22.78			23.03
Close	23.09			24.43			23.65			23.92			23.82
Weighted average common shares:
Basic	7,059			7,073			7,068			7,064			7,060
Fully Diluted	7,059			7,073			7,068			7,064			7,060
End-of-period common shares:
Issued	7,559			7,555			7,550			7,546			7,542
Treasury	(510)			(480)			(480)			(480)			(480)

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(Dollars in Thousands, Except Per Share Data, Unaudited)	Quarter Ended
	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Financial Condition Data:
General
Total assets	$	1,891,806	$	1,916,809	$	1,940,809	$	1,910,791	$	1,894,870
Loans, net	1,474,739		1,391,943		1,377,971		1,332,668		1,323,509
Goodwill	17,104		17,104		17,104		17,104		17,104
Intangibles	396		437		480		524		568
Total deposits	1,589,579		1,612,395		1,621,315		1,593,019		1,563,696
Noninterest-bearing	524,288		514,130		494,360		481,875		477,344
Savings	249,057		245,661		236,312		231,189		226,573
NOW	353,102		379,838		366,399		340,441		296,450
Money Market	309,453		299,166		318,877		305,156		301,405
Time Deposits	153,679		173,600		205,367		234,358		261,924
Total interest-bearing deposits	1,065,291		1,098,265		1,126,955		1,111,144		1,086,352
Core deposits*	1,435,900		1,438,795		1,415,948		1,358,661		1,301,772
Shareholders’ equity	166,054		168,427		172,274		168,478		166,830
Asset Quality
Non-performing loans	$	5,100	$	5,281	$	6,250	$	7,763	$	7,931
Non-performing loans to total assets	0.27%		0.28%		0.32%		0.41%		0.42%
Allowance for loan losses	14,393		14,023		14,176		14,557		14,438
Allowance for loan losses to total loans	0.97%		1.00%		1.02%		1.08%		1.08%
Allowance for loan losses to non-performing loans	282.22%		265.54%		226.82%		187.52%		182.05%
Non-performing loans to total loans	0.34%		0.38%		0.45%		0.58%		0.59%
Capitalization
Shareholders’ equity to total assets	8.78%		8.79%		8.88%		8.82%		8.80%

* Core deposits are defined as total deposits less time deposits

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Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)	2022			2021			2022			2021
GAAP net income	$	4,231		$	3,588		$	7,663		$	7,029
Less: net securities (losses) gains, net of tax	(43)			111			(91)			205
Non-GAAP core earnings	$	4,274		$	3,477		$	7,754		$	6,824
	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Return on average assets (ROA)	0.88		%	0.76		%	0.80		%	0.75		%
Less: net securities (losses) gains, net of tax	(0.01)		%	0.02		%	(0.01)		%	0.02		%
Non-GAAP core ROA	0.89		%	0.74		%	0.81		%	0.73		%
	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Return on average equity (ROE)	10.15		%	8.70		%	9.20		%	8.69		%
Less: net securities (losses) gains, net of tax	(0.10)		%	0.27		%	(0.11)		%	0.25		%
Non-GAAP core ROE	10.25		%	8.43		%	9.31		%	8.44		%
	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Basic earnings per share (EPS)	$	0.60		$	0.51		$	1.08		$	1.00
Less: net securities (losses) gains, net of tax	(0.01)			0.02			(0.02)			0.03
Non-GAAP basic core EPS	$	0.61		$	0.49		$	1.10		$	0.97
	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Diluted EPS	$	0.60		$	0.51		$	1.08		$	1.00
Less: net securities (losses) gains, net of tax	(0.01)			0.02			(0.02)			0.03
Non-GAAP diluted core EPS	$	0.61		$	0.49		$	1.10		$	0.97

10