Core Points - The merger between Northwest Bancshares, Inc. and Penns Woods Bancorp, Inc. has been completed as of July 25, 2025, enhancing Northwest's banking presence in Pennsylvania [1][2] - Richard A. Grafmyre, the CEO of Penns Woods, has been appointed to the Board of Directors of Northwest and Northwest Bank following the merger [2] - The merger adds 21 branch locations to Northwest, bringing the total to 151 financial centers across Pennsylvania, New York, Ohio, and Indiana [2][3] - The former Jersey Shore State Bank and Luzerne Bank locations have been rebranded to Northwest Bank after a successful customer and data conversion [3] Company Overview - Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and operates as a full-service financial institution offering a range of banking products and services [7] - The company was founded in 1896 and currently operates 151 full-service financial centers and eleven drive-up facilities [7] - Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market under the symbol NWBI [7]

Company Profile - As of November 19, 2024, Penns Woods Bancorp, Inc (PWOD) has a market capitalization of $2303 million[7] - The company's total assets are $23 billion, with gross loans totaling $19 billion and total deposits of $17 billion[7] - The company operates 24 branch offices, with $1649 million in total deposits across its main market areas[7, 9] Financial Performance - As of Q3 2024, the Return on Average Tangible Common Equity (ROATCE) plus dividends for PWOD is 157%, outperforming its peers by 6%[25] - PWOD's deposit beta (2022-Now) is 140 bps, lower than the KRX (NASDAQ Regional Banking Index) at 157 bps, indicating a stickier deposit base[28] - For the nine months ended September 30, 2024, net income attributable to PWB is $13998 thousand[91] - The company's earnings per share (basic) for the year-to-date 2024 is $248[31] Balance Sheet and Loan Portfolio - As of Q3 2024, non-interest-bearing deposits constitute 27% of the total deposit composition[46] - Residential real estate loans make up 44% of the loan portfolio composition[46] - The yield on total loans is 546%, while the cost of total deposits is 227% as of Q3 2024[46] Value Proposition - Cumulative net charge-offs/avg loans from 2019-2024Q3 is 04% for PWOD compared to 13% for Pennsylvania banks and 28% for all banks[67] - Fee income accounts for 14% of total revenue, and the combined fee income and consumer income represent 66% of total revenue[69]

Financial Performance - Net income for Q1 2025 was $7,367,000, a 93.5% increase from $3,808,000 in Q1 2024[85] - Basic and diluted earnings per share for Q1 2025 were $0.97 and $0.95, respectively, compared to $0.51 in Q1 2024[87] - Annualized return on average assets increased to 1.31% in Q1 2025 from 0.69% in Q1 2024[87] - Non-GAAP core earnings for Q1 2025 were $8,061,000, up from $3,834,000 in Q1 2024, representing a 109.5% increase[87] Interest Income and Expenses - The net interest margin improved to 3.13% in Q1 2025, compared to 2.69% in Q1 2024, driven by a 38 basis points increase in rates[95] - Interest and dividend income rose by $2,148,000, or 8.19%, to $28,378,000 in Q1 2025 from $26,230,000 in Q1 2024[92] - Total interest income for the three months ended March 31, 2025, was $28,378,000, an increase from $26,230,000 in 2024, representing a growth of 8.2%[98] - Net interest income on a fully taxable equivalent basis for Q1 2025 was $16,273,000, compared to $13,869,000 in Q1 2024, reflecting a year-over-year increase of 17.3%[98] - Total interest expense decreased by $246,000, or 1.97%, to $12,238,000 in Q1 2025 from $12,484,000 in Q1 2024[93] Credit Losses and Nonperforming Loans - The allowance for credit losses showed a negative provision of $2,969,000 in Q1 2025, compared to a provision of $138,000 in Q1 2024[85] - The allowance for credit losses decreased from $11,848,000 at December 31, 2024, to $9,990,000 at March 31, 2025, due to a negative provision for credit losses of $2,969,000[104] - Nonperforming loans increased to $9,987,000 at March 31, 2025, up from $8,904,000 at December 31, 2024, resulting in a nonperforming loans to total loans ratio of 0.53%[106] - The net loan recoveries for the three months ended March 31, 2025, were $957,000, impacting the allowance for credit losses[106] Non-Interest Income and Expenses - Total non-interest income for Q1 2025 was $2,568,000, an increase of $106,000 or 4.31% compared to the same period in 2024[109] - Total non-interest expense increased by $971,000 for the three months ended March 31, 2025, primarily due to higher salaries and employee benefits[111] - Non-interest expenses for the three months ended March 31, 2025, totaled $12,594,000, an increase of 8.35% compared to $11,623,000 for the same period in 2024[113] - Salaries and employee benefits accounted for 51.48% of total non-interest expenses in Q1 2025, slightly down from 55.25% in Q1 2024[113] - Gain on sale of loans increased by 33.77% to $408,000 in Q1 2025 compared to $305,000 in Q1 2024[110] Capital and Liquidity - As of March 31, 2025, the Company and both Banks were classified as "well capitalized" under regulatory standards, with Common Equity Tier I Capital ratio at 10.588%[135] - The Company's Total Capital ratio was 11.139% as of March 31, 2025, exceeding the minimum requirement of 10.000% to be considered well capitalized[135] - Jersey Shore State Bank's Common Equity Tier I Capital ratio was 10.328% as of March 31, 2025, above the required minimum of 6.500%[136] - Luzerne Bank's Total Capital ratio was 11.137% as of March 31, 2025, surpassing the minimum requirement of 10.000%[136] - The Company maintained a capital conservation buffer of 2.5% above the regulatory minimum capital requirements for CET1, Tier 1, and Total Capital ratios[133] - The net loans to total deposits ratio was 109% as of March 31, 2025, indicating a need for careful liquidity management[138] - The Company has strategically taken an asset-sensitive gap position to enhance net interest income in response to market interest rate changes[144] - The Company’s liquidity management includes monitoring cash flow needs and maintaining adequate resources to meet funding requirements[141] Market Risk and Interest Rate Sensitivity - Market risk is primarily composed of interest rate risk exposure and liquidity risk, monitored through independent third-party measures[152] - Management believes that movements in interest rates have a greater impact on financial condition than inflation changes[151] - The percent change in net interest income from the static scenario varies from -5.18% to +1.88% depending on the interest rate shift[148] - The company is well positioned to respond quickly to changes in market interest rate outlook[153] - The company’s ability to match interest sensitivity of assets and liabilities may minimize performance impacts from interest rate changes[151] Tax and Cash Management - The effective tax rate increased to 18.89% for Q1 2025, up from 14.37% in Q1 2024, due to higher taxable income from increased net interest income[114] - Cash and cash equivalents increased by $8,473,000 to $37,445,000 as of March 31, 2025, compared to $28,972,000 at December 31, 2024[115] Investment Portfolio - The fair value of the investment debt securities portfolio decreased by $8,821,000 since December 31, 2024, while the amortized cost decreased by $11,106,000[119] Borrowing Capacity - The Company has a total current maximum borrowing capacity at the FHLB of $847,542,000, with FHLB borrowings totaling $288,546,000 as of March 31, 2025[142]

Core Financial Performance - Penns Woods Bancorp, Inc. reported a net income of $7.4 million for the three months ended March 31, 2025, with basic and diluted earnings per share of $0.97 and $0.95, respectively, compared to $3.8 million and $0.51 for the same period in 2024 [1][5][20] - Core earnings, a non-GAAP measure, were $8.1 million for the same period, up from $3.8 million in 2024, with core earnings per share increasing from $0.51 to $1.06 (basic) and $1.04 (diluted) [3][5] - The annualized return on average assets was 1.31% for Q1 2025, compared to 0.69% in Q1 2024, while the return on average equity rose to 14.76% from 8.03% [5][24] Net Interest Margin and Income - The net interest margin increased to 3.13% for the three months ended March 31, 2025, up from 2.69% in the same period of 2024, driven by a 38 basis points increase in the rate collected on interest-earning assets [4][24] - Net interest income rose by $2.4 million, reflecting the expanded net interest margin [5][24] - Total interest and dividend income for Q1 2025 was $28.4 million, an increase of 8.19% from $26.2 million in Q1 2024 [19][24] Asset and Loan Growth - Total assets increased to $2.3 billion as of March 31, 2025, a rise of $42.1 million from the previous year [7][24] - Net loans grew by $43.3 million to $1.9 billion, with a focus on commercial loan growth and indirect auto lending [7][24] - The average loan portfolio balance increased by $41.8 million, contributing to a taxable equivalent interest income increase of $2.2 million [4][24] Deposits and Funding - Total deposits rose by $105.4 million to $1.7 billion, with interest-bearing deposits increasing by $111.1 million [9][24] - Noninterest-bearing deposits decreased by $5.7 million, while core deposits remained stable at $1.2 billion over the past five quarters [9][24] - Brokered deposits increased by $51.2 million to $177.0 million, utilized to support loan portfolio growth [9][24] Shareholders' Equity - Shareholders' equity increased by $18.5 million to $212.0 million, with a book value per share rising to $27.85 from $25.72 [10][24] - The accumulated other comprehensive loss decreased significantly, contributing to the overall increase in equity [10][24] Non-Performing Loans - The ratio of non-performing loans to total loans increased to 0.53% from 0.43%, with non-performing loans rising to $10.0 million [8][24] - The allowance for credit losses was 0.54% of total loans, down from 0.62% in the previous year [8][24]

Core Insights - Penns Woods Bancorp, Inc. reported a net income of $7.4 million for the three months ended March 31, 2025, with basic earnings per share of $0.97 and diluted earnings per share of $0.95, reflecting a significant increase from $3.8 million in net income for the same period in 2024 [1][5]. Financial Performance - Core earnings, a non-GAAP measure, were $8.1 million for the three months ended March 31, 2025, compared to $3.8 million for the same period in 2024, resulting in core earnings per share of $1.06 (basic) and $1.04 (diluted) [3]. - The annualized core return on average assets and average equity were 1.43% and 16.15%, respectively, for the three months ended March 31, 2025, compared to 0.69% and 8.09% for the same period in 2024 [3]. Net Interest Margin - The net interest margin increased to 3.13% for the three months ended March 31, 2025, up from 2.69% for the same period in 2024, driven by a 38 basis points increase in the rate collected on interest-earning assets [4][5]. - The average loan portfolio balance increased by $41.8 million, contributing to a taxable equivalent interest income increase of $2.2 million for the period [4]. Asset and Loan Growth - Total assets rose to $2.3 billion at March 31, 2025, an increase of $42.1 million compared to March 31, 2024, with net loans increasing by $43.3 million to $1.9 billion [7]. - The investment portfolio decreased by $14.3 million as cash flow was utilized to fund loan growth [7]. Deposits and Borrowings - Total deposits increased by $105.4 million to $1.7 billion at March 31, 2025, with interest-bearing deposits rising by $111.1 million due to growth in the time deposit portfolio [9]. - Short-term and long-term borrowings decreased by $28.3 million and $47.2 million, respectively, as deposit growth allowed for a reduction in total borrowings [7]. Shareholders' Equity - Shareholders' equity increased by $18.5 million to $212.0 million at March 31, 2025, with a book value per share of $27.85, up from $25.72 at March 31, 2024 [10]. - The accumulated other comprehensive loss decreased significantly, contributing to the overall increase in shareholders' equity [10]. Non-Performing Loans - The ratio of non-performing loans to total loans increased to 0.53% at March 31, 2025, from 0.43% at March 31, 2024, with non-performing loans rising to $10.0 million [8]. - The allowance for credit losses was 0.54% of total loans at March 31, 2025, compared to 0.62% at March 31, 2024 [8].

Financial Performance - Net income for the first quarter of 2025 was $7.4 million, an increase from $3.8 million in the same period of 2024, resulting in basic earnings per share of $0.97 and diluted earnings per share of $0.95[2][5] - Core earnings for the first quarter of 2025 were $8.1 million, up from $3.8 million in the same period of 2024, with core earnings per share increasing from $0.51 to $1.06[4] - Net income available to common shareholders increased by 93.46% to $7,367,000, up from $3,808,000 in the same quarter last year[21] - Net income for Q1 2025 was $7,367,000, an increase of 97.5% compared to $3,741,000 in Q4 2024[25] - Basic earnings per share for Q1 2025 were $0.97, a significant increase from $0.50 in Q4 2024[25] - GAAP net income for Q1 2025 was $7,367,000, compared to $3,808,000 in Q1 2024, representing an increase of 93.5%[28] - Non-GAAP core earnings increased to $8,061,000 in Q1 2025 from $3,834,000 in Q1 2024, a growth of 110.5%[28] - Basic earnings per share (EPS) for Q1 2025 was $0.97, up from $0.51 in Q1 2024, reflecting an increase of 90.2%[28] - Non-GAAP diluted core EPS for Q1 2025 was $1.04, up from $0.51 in Q1 2024, representing a growth of 104%[28] Asset and Liability Management - Total assets rose to $2.3 billion as of March 31, 2025, an increase of $42.1 million from the previous year, with net loans increasing by $43.3 million to $1.9 billion[8] - Total assets increased by 1.91% to $2,252,235,000 compared to $2,210,116,000 in the previous year[19] - Total assets increased to $2,252,235,000, compared to $2,232,338,000 in Q4 2024, reflecting a growth of 0.9%[26] - Total deposits grew by 6.51% to $1,723,954,000 from $1,618,562,000[19] - Deposits increased by $105.4 million to $1.7 billion at March 31, 2025, with interest-bearing deposits growing by $111.1 million[10] - Total deposits reached $1,723,954,000, a slight increase from $1,706,081,000 in the prior quarter[26] - Interest-bearing deposits increased by 9.68% to $1,258,188,000 compared to $1,147,111,000 in the previous year[19] Profitability Metrics - The net interest margin improved to 3.13% in Q1 2025, compared to 2.69% in Q1 2024, driven by a 38 basis points increase in the rate collected on interest-earning assets[7] - Net interest income rose by 17.42% to $16,140,000 from $13,746,000 year-over-year[21] - Net interest income rose to $16,140,000, up 3.7% from $15,563,000 in the previous quarter[25] - The net interest margin improved to 3.13%, compared to 2.98% in Q4 2024, indicating enhanced profitability on interest-earning assets[25] - The annualized return on average assets improved to 1.31%, compared to 0.67% in the previous quarter[25] - Return on average assets (ROA) improved to 1.31% in Q1 2025, up from 0.69% in Q1 2024[28] - Return on average equity (ROE) rose to 14.76% in Q1 2025, compared to 8.03% in Q1 2024, indicating a significant increase of 83.5%[28] Equity and Shareholder Value - Shareholders' equity increased by $18.5 million to $212.0 million at March 31, 2025, with a book value per share rising to $27.85 from $25.72[11][12] - Total shareholders' equity reached $212,023,000 in Q1 2025, an increase from $193,517,000 in Q1 2024, marking a growth of 9.5%[28] - Tangible shareholders' equity increased to $195,491,000 in Q1 2025 from $176,883,000 in Q1 2024, a rise of 10.5%[28] - Book value per share improved to $27.85 in Q1 2025, compared to $25.72 in Q1 2024, an increase of 8.3%[28] Credit Quality - The allowance for credit losses showed a negative provision of $3.0 million in Q1 2025, compared to a provision of $138,000 in Q1 2024, primarily due to a recovery on a commercial loan[5] - The allowance for credit losses decreased by 11.32% to $10,236,000 from $11,542,000[19] - The ratio of non-performing loans to total loans increased to 0.53% at March 31, 2025, up from 0.43% a year earlier, with non-performing loans totaling $10.0 million[9] - Non-performing loans increased to $9,987,000, up from $8,904,000 in Q4 2024, representing a rise of 12.2%[26] Merger Activity - The company is in the process of merging with Northwest Bancshares, Inc., which has resulted in after-tax merger-related expenses of $948,000 in Q1 2025[5] - The company incurred merger expenses of $948,000 in Q1 2025, while there were no such expenses reported in Q1 2024[28]

Interest Income and Expense - Reported net interest income increased by $3,916,000 to $58,880,000 for the year ended December 31, 2024, compared to 2023 [115]. - Total interest income rose by $18,103,000 or $18,064,000 on a tax equivalent basis, primarily due to growth in the loan portfolio balance and yield [115]. - Interest expense increased by $14,187,000 to $50,818,000 for the year ended December 31, 2024, driven by a 96 basis point increase in the average rate paid on interest-bearing deposits [116]. - The average rate paid on time deposits increased by 87 basis points, contributing to the rise in interest expense [116]. - Total interest income for 2023 was $91,595,000, up from $64,928,000 in 2022, reflecting a significant increase in the loan portfolio [123]. - Net interest income for 2023 was $54,964,000, a decrease of $2,816,000 compared to 2022 [117]. - The interest rate spread for 2024 was 1.98%, down from 2.10% in 2023 [120]. - The company experienced a net increase in interest income of $3,877,000 from 2023 to 2024, despite a decrease in net interest income from 2022 to 2023 [125]. Credit Losses and Allowance - The allowance for credit losses increased from $11,446,000 at December 31, 2023 to $11,848,000 at December 31, 2024, representing 0.63% of total loans compared to 0.62% in the previous year [130]. - The provision for loan credit losses totaled $942,000 for the year ended December 31, 2024, compared to a recovery of $927,000 for the year ended December 31, 2023, reflecting a significant increase in net charge-offs and gross loan growth of $37,314,000 [131]. - The allowance for credit losses decreased from $15,637,000 at December 31, 2022 to $11,446,000 at December 31, 2023, primarily due to the adoption of CECL, which reduced the reserve by $3,789,000 [132]. - Non-performing loans increased due to the addition of a commercial relationship during 2024, with the majority being secured loans with strong underlying financial positions [131]. - The allowance for credit losses allocated to commercial, financial, and agricultural loans was $2,323,000, representing 1.10% of total loans in that category [167]. - The total non-accrual loans outstanding were $4,388,000, which is 0.23% of total loans [167]. - The allowance for credit losses allocated to consumer automobile loans was $2,909,000, with a ratio of net charge-offs to recoveries at (0.37)% [167]. - The allowance for credit losses (ACL) increased to $(11,848,000) in 2024 from $(11,446,000) in 2023, indicating a rise in expected credit losses [307]. Non-Interest Income and Expenses - Total non-interest income increased by $1,243,000 from $8,375,000 in 2023 to $9,618,000 in 2024, with notable increases in gain on sale of loans and loan broker income due to higher mortgage volume [135]. - Salaries and employee benefits increased by $1,194,000 from $25,062,000 in 2023 to $26,256,000 in 2024, primarily due to routine wage and benefit increases [140]. - Total non-interest expenses rose by $1,988,000 from $44,496,000 in 2023 to $46,484,000 in 2024, with merger-related expenses of $735,000 incurred during the fourth quarter of 2024 [139]. - Total non-interest expense increased to $46,484 thousand in 2024, up from $44,496 thousand in 2023, a rise of 4.5% [213]. Loans and Deposits - Gross loans increased by $200,033,000, or 12.2%, from $1,639,731,000 in 2022 to $1,839,764,000 in 2023 [152]. - The residential loan segment increased by $31,906,000, or 4.00%, from $798,501,000 in 2023 to $830,407,000 in 2024 [153]. - The total loans outstanding as of December 31, 2024 amounted to $1,876,115,000, with a net charge-off of $540,000 or 0.03% of average loans for the year [162]. - Total average deposits increased by $89,919,000 or 5.72% from 2023 to 2024, with time deposits rising by $167,617,000 [175]. - The net loans to total deposits ratio was 109% as of December 31, 2024, indicating a strong liquidity position [188]. - The total past due loans (30 to 89 days) increased to $22,773,000 in 2024 from $16,553,000 in 2023, marking a growth of about 37.0% [306]. - The total past due loans (90 days or more) also increased to $6,064,000 in 2024 from $3,148,000 in 2023, reflecting a rise of approximately 92.0% [306]. Shareholders' Equity and Income - Shareholders' equity increased by $13,675,000 to $205,231,000 at December 31, 2024, resulting in a book value per share of $27.16 [182]. - Consolidated net income for 2024 was $17,739 thousand, compared to $16,608 thousand in 2023, reflecting a year-over-year increase of 6.8% [213]. - The percentage of dividends declared to net income was 54.38% in 2024, slightly down from 55.18% in 2023 [186]. - The company declared dividends of $1.28 per share, totaling $9,646,000 in 2024, compared to $9,164,000 in 2023 [219]. Investment Portfolio - The fair value of the investment portfolio decreased by $2,748,000 from December 31, 2022, to December 31, 2023, primarily due to a decrease in the municipal segment [147]. - The total investment portfolio decreased by $6,414,000, or 3.34%, from $192,067,000 in 2023 to $185,653,000 in 2024 [148]. - Approximately 82% of the debt securities portfolio is currently rated A or higher by S&P or Moody's, indicating strong credit quality [146]. - The total yield of the investment portfolio was 3.90% as of December 31, 2024 [148]. - The net unrealized loss on available-for-sale securities was $(4,567,000) as of December 31, 2024, compared to $(6,396,000) in 2023 [286]. Mergers and Acquisitions - The merger agreement between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc. may impact future operational efficiencies and integration efforts [208]. - The Corporation will merge with Northwest Bancshares, Inc., with each share of the Corporation's common stock converting into 2.385 shares of Northwest common stock [229]. - The Merger requires approval from regulatory authorities and shareholders, with a special meeting scheduled for April 22, 2025 [230]. Management and Operational Strategies - Management's review of the loan portfolio includes assessing loan quality, analyzing delinquencies, and evaluating potential charge-offs and recoveries [157]. - The Corporation's liquidity management includes cash on hand, loan repayments, and sales of investments, ensuring sufficient resources for funding needs [191]. - The Corporation maintains a gap position that is asset sensitive, with a focus on short-term funding and a slight lengthening of the investment portfolio due to higher yields [194]. - Management emphasizes interest rate sensitivity and utilizes a market value at risk calculation to monitor the effects of interest rate changes on shareholders' equity [195]. - The Corporation's asset/liability management aims to match maturities and rates between assets and liabilities to cope with market rate fluctuations [193].

Core Points - Penns Woods Bancorp, Inc. reported a net income of $17.7 million for the twelve months ended December 31, 2024, with earnings per share of $2.35 [1][7] - Core earnings for the same period were $18.4 million, up from $16.7 million in 2023, with core earnings per share increasing to $2.44 from $2.36 [3] - The company experienced an increase in total assets to $2.2 billion, a rise of $27.5 million compared to the previous year [5] Net Income - Net income from core operations was $4.4 million for the three months ended December 31, 2024, compared to $5.6 million in 2023 [3] - The annualized core return on average assets was 0.83% for the twelve months ended December 31, 2024, compared to 0.79% in 2023 [3] - The net income reported under GAAP for the three months ended December 31, 2024, was $3.7 million, down from $5.6 million in 2023 [7] Net Interest Margin - The net interest margin for the three months ended December 31, 2024, was 2.98%, up from 2.73% in 2023 [4] - The average loan portfolio balance increased by $47.4 million for the three months ended December 31, 2024, compared to the same period in 2023 [4] - Interest income from the loan portfolio increased by $2.0 million for the three months ended December 31, 2024 [4] Assets - Total assets reached $2.2 billion at December 31, 2024, marking a 1.25% increase from the previous year [5] - Net loans increased to $1.9 billion, up $36.9 million from December 31, 2023, driven by commercial loan growth [5] - The investment portfolio decreased by $10.7 million from the previous year [5] Non-performing Loans - The ratio of non-performing loans to total loans increased to 0.47% at December 31, 2024, from 0.17% in 2023 [8] - Non-performing loans rose to $8.9 million, up from $3.1 million in the previous year [8] - The allowance for credit losses was 0.63% of total loans at December 31, 2024, compared to 0.62% in 2023 [8] Deposits - Total deposits increased by $116.6 million to $1.7 billion at December 31, 2024 [9] - Noninterest-bearing deposits decreased by $14.2 million, while interest-bearing deposits increased by $130.8 million [9] - Core deposits remained stable at $1.2 billion over the past five quarters [9] Shareholders' Equity - Shareholders' equity increased by $13.7 million to $205.2 million at December 31, 2024 [10] - The book value per share rose to $27.16 from $25.51 in the previous year [10] - The accumulated other comprehensive loss decreased from $9.2 million to $5.3 million [10]

Core Financial Performance - Penns Woods Bancorp, Inc. reported a net income of $17.7 million for the twelve months ended December 31, 2024, with earnings per share of $2.35 [1][5] - Core earnings for the three and twelve months ended December 31, 2024 were $4.4 million and $18.4 million, respectively, compared to $5.6 million and $16.7 million for the same periods in 2023 [3] - The annualized core return on average assets and equity for the twelve months ended December 31, 2024 were 0.83% and 9.46%, respectively, compared to 0.79% and 9.93% for the same period in 2023 [3] Net Interest Margin and Income - The net interest margin for the three and twelve months ended December 31, 2024 was 2.98% and 2.83%, respectively, compared to 2.73% and 2.80% for the same periods in 2023 [4] - Net interest income increased by $1.6 million and $3.9 million for the three and twelve months ended December 31, 2024, respectively, as the cost of funds stabilized [5] - The average loan portfolio balance increased by $47.4 million and $106.9 million for the three and twelve months ended December 31, 2024, respectively [4] Asset and Loan Growth - Total assets increased to $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023 [7] - Net loans increased by $36.9 million to $1.9 billion at December 31, 2024, with a focus on commercial loan growth and indirect auto lending [7] - The ratio of non-performing loans to total loans increased to 0.47% at December 31, 2024, from 0.17% at December 31, 2023 [8] Deposits and Funding - Total deposits increased by $116.6 million to $1.7 billion at December 31, 2024, with interest-bearing deposits growing by $130.8 million [9] - Noninterest-bearing deposits decreased by $14.2 million, while core deposits declined by $17.8 million as customers migrated to higher-rate time deposits [9] - Brokered deposit balances increased by $53.6 million to $178.3 million at December 31, 2024, as this funding source was utilized to support loan portfolio growth [9] Shareholders' Equity - Shareholders' equity increased by $13.7 million to $205.2 million at December 31, 2024, with a book value per share of $27.16 [10] - The accumulated other comprehensive loss decreased from $9.2 million at December 31, 2023, to $5.3 million at December 31, 2024 [10] - Tangible book value per share increased to $24.97 at December 31, 2024, compared to $23.29 at December 31, 2023 [10]

Financial Performance - Net income for the twelve months ended December 31, 2024 was $17.7 million, with basic and diluted earnings per share of $2.35[2] - Core earnings for the three and twelve months ended December 31, 2024 were $4.4 million and $18.4 million, respectively, compared to $5.6 million and $16.7 million for the same periods in 2023[4] - Net income available to common shareholders decreased by 32.66% to $3,741,000 for the three months ended December 31, 2024, down from $5,555,000 in 2023[22] - Earnings per share (basic) fell by 35.06% to $0.50 from $0.77 in the previous year[22] - Net income for the quarter ended December 31, 2024, was $3,741,000, a decrease of 32.5% compared to $5,555,000 for the same quarter last year[29] - Non-GAAP core earnings for Q4 2024 were $4,357,000, down 21.5% from $5,569,000 in Q4 2023[32] - Basic earnings per share (EPS) for Q4 2024 were $0.50, a decrease of 35.1% compared to $0.77 in Q4 2023[32] Asset and Deposit Growth - Total assets increased to $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023[9] - Total assets increased by 1.25% to $2,232,338,000 compared to $2,204,809,000 in 2023[20] - Total deposits rose by 7.33% to $1,706,081,000, up from $1,589,493,000 in 2023[20] - Deposits increased by $116.6 million to $1.7 billion at December 31, 2024, with interest-bearing deposits rising by $130.8 million[11] - Total assets as of December 31, 2024, were $2,238,340,000, compared to $2,182,744,000 in 2023, reflecting an increase of 2.5%[24] - Total deposits increased to $1,706,081,000, up 7.4% from $1,589,493,000 year-over-year[30] Loan Performance - The average loan portfolio balance increased by $47.4 million and $106.9 million for the three and twelve months ended December 31, 2024, respectively[8] - Loans, net grew by 2.02% to $1,865,230,000 from $1,828,318,000 in the previous year[20] - Total loans increased to $1,876,179,000 as of December 31, 2024, from $1,828,743,000 in 2023, marking a growth of 2.6%[24] - The ratio of non-performing loans to total loans increased to 0.47% at December 31, 2024, up from 0.17% at December 31, 2023, with non-performing loans rising to $8.9 million[10] - Non-performing loans increased to $8,904,000, representing 0.40% of total assets, compared to 0.14% in the same quarter last year[30] Interest Income and Expense - The net interest margin for the three and twelve months ended December 31, 2024 was 2.98% and 2.83%, respectively, compared to 2.73% and 2.80% for the corresponding periods in 2023[8] - Net interest income increased by 11.58% to $15,563,000 for the three months ended December 31, 2024, compared to $13,948,000 in 2023[22] - Total interest income for the three months ended December 31, 2024, was $28,251,000, an increase from $25,917,000 in the same period of 2023, representing a growth of 5.15%[25] - Total interest expense for the three months ended December 31, 2024, was $12,688,000, up from $11,969,000 in 2023, an increase of 6.0%[25] - Interest expense on deposits increased by 27.91% to $9,523,000 for the three months ended December 31, 2024, compared to $7,445,000 in 2023[22] Shareholders' Equity - Shareholders' equity increased by $13.7 million to $205.2 million at December 31, 2024, resulting in a book value per share of $27.16[13] - Shareholders' equity increased to $205,538,000 as of December 31, 2024, from $176,415,000 in 2023, representing a growth of 16.5%[24] - Total shareholders' equity increased to $205,231,000 in Q4 2024 from $191,556,000 in Q4 2023[32] - Tangible shareholders' equity rose to $188,674,000 in Q4 2024, up from $174,896,000 in Q4 2023[32] - Book value per share increased to $27.16 in Q4 2024, compared to $25.51 in Q4 2023[32] Operational Efficiency - The efficiency ratio for the quarter was 70.73%, compared to 67.78% in the same quarter last year, indicating a decrease in operational efficiency[29] - The annualized return on average assets was 0.67%, down from 1.02% in the same quarter last year, indicating a decline in profitability[29] - Return on average assets (ROA) for Q4 2024 was 0.67%, a decline from 1.02% in Q4 2023[32] - Return on average equity (ROE) for Q4 2024 was 7.28%, down from 12.60% in Q4 2023[32] Merger Activity - A merger agreement with Northwest Bancshares, Inc. was announced, which may impact future performance and operational efficiencies[16] - Merger expenses for Q4 2024 amounted to $581,000, with no expenses reported in Q4 2023[32]