Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from to Commission file number 0-17077 PENNS WOODS BANCORP, INC. (Exact name of registrant as specified in its charter) Pennsylvania 300 Market ...

Financial Performance - Net income for the three months ended September 30, 2023 was $2.2 million, a decrease from $5.3 million in the same period of 2022, while net income for the nine months was $11.1 million compared to $12.9 million in 2022[129]. - Basic earnings per share for the three months ended September 30, 2023 were $0.31, down from $0.74 in 2022, and for the nine months, it was $1.56 compared to $1.83 in 2022[134]. - Core earnings for the three months ended September 30, 2023 were $2.3 million, down from $5.4 million in 2022, and for the nine months, it was $11.2 million compared to $13.2 million in 2022[129]. - Total non-interest income for the three months ended September 30, 2023, decreased by $208,000 compared to the same period in 2022, with a notable decline in loan broker commissions by 44.98%[161]. - Total non-interest income decreased by $478,000, or 7.21%, from $6,632,000 in September 30, 2022 to $6,154,000 in September 30, 2023[163]. Interest Income and Expense - Interest and dividend income increased by $7.1 million (41.85%) for the three months and $19.4 million (41.78%) for the nine months ended September 30, 2023 compared to the same periods in 2022[135][138]. - Interest expense surged by $9.3 million (694.97%) for the three months and $20.6 million (502.84%) for the nine months ended September 30, 2023 compared to the same periods in 2022[139][140]. - Total interest income for Q3 2023 was $23.9 million, up from $16.9 million in Q3 2022, while total interest expense rose to $10.6 million from $1.3 million in the same period[148]. - The net interest income on a fully taxable equivalent basis for Q3 2023 was $13.5 million, down from $15.7 million in Q3 2022[148]. - Net interest income decreased by $2,219,000 for the three months ended September 30, 2023, compared to the same period in 2022, primarily due to a decrease in volume and rate changes[149]. Asset and Loan Portfolio - The increase in loan portfolio income was attributed to a higher average loan portfolio balance and an increase in the average rate earned on the portfolio[135]. - The average loan portfolio balance increased by $276.8 million for Q3 2023 and $278.2 million for the nine months ended September 30, 2023, with an increase in average yield of 87 bps and 76 bps respectively[142]. - Gross loans increased by $178,730,000, or 10.90%, from $1,639,731,000 at December 31, 2022 to $1,818,461,000 at September 30, 2023, driven by increases in residential and commercial real estate mortgages and consumer automobile loans[170]. - The total interest-earning assets increased by $7,038,000 for the three months ended September 30, 2023, compared to the same period in 2022[149]. Credit Losses and Nonperforming Loans - The provision for credit losses increased by $517,000 for the three months ended September 30, 2023, while it decreased by $1.1 million for the nine months due to a recovery on a commercial loan[129]. - The provision for credit losses for the three months ended September 30, 2023, was $1,372,000, an increase from $855,000 in the same period of 2022, attributed to loan portfolio growth[155]. - Nonperforming loans decreased to $3,683,000 at September 30, 2023, down from $4,890,000 at December 31, 2022, indicating a reduction in the nonperforming loans ratio to 0.20%[156]. - The ratio of nonperforming loans to total loans decreased from 0.37% at September 30, 2022, to 0.20% at September 30, 2023[156]. Deposits and Borrowings - Total deposits decreased by $10,807,000 from $40,333,000 at December 31, 2022 to $35,590,000 at September 30, 2023, while time deposits increased by $111,601,000[179]. - Demand deposits decreased by $47,556,000 (9.16%) from $519,063,000 to $471,507,000, while NOW accounts saw a significant decline of $151,844,000 (40.76%) from $372,574,000 to $220,730,000[180]. - Total borrowed funds increased by 60.62%, or $155,259,000, reaching $411,391,000 as of September 30, 2023, compared to $256,132,000 at December 31, 2022[181]. - Long-term FHLB borrowings rose by $115,000,000 (121.05%) from $95,000,000 to $210,000,000, indicating a strategic move to lock in interest rates[183]. Capital and Liquidity - Common Equity Tier I Capital ratio was 9.505% as of September 30, 2023, down from 9.973% on December 31, 2022, while Total Capital ratio decreased from 10.925% to 10.290%[190]. - The Company maintained a Common Equity Tier I Capital of $173,291,000 for risk-weighted assets as of September 30, 2023, compared to $165,346,000 at the end of 2022[190]. - The net loans to total deposits ratio was 115% as of September 30, 2023, indicating a focus on maintaining liquidity while managing interest rate risk[193]. - Management believes the Company has sufficient liquidity to satisfy estimated short-term and long-term funding needs[197]. Interest Rate Sensitivity - The Company aims to maintain a capital level sufficient to support existing assets and anticipated growth, ensuring favorable access to capital markets[186]. - The Company’s asset/liability management policy includes a market value at risk calculation to monitor the effects of interest rate changes on shareholders' equity[200]. - Interest rate sensitivity is assessed through a simulation analysis, with no substantial changes in the Company's gap analysis compared to the previous year[207]. - Management emphasizes that movements in interest rates affect financial condition more significantly than changes in inflation rates[206].

WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2023. ☐ Transition report pursuant to Section 13 or 15 (d) of the Exchange Act Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the Transition Period from to . No. 0-17077 (Commission File Number) PENNS WOODS BANCORP INC. (Exact name of Registrant as specified in its charter) Pennsylvania 300 Market Street, P.O. Box 967 23-2 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2023. ☐ Transition report pursuant to Section 13 or 15 (d) of the Exchange Act For the Transition Period from to . No. 0-17077 (Commission File Number) PENNS WOODS BANCORP INC. (Exact name of Registrant as specified in its charter) Pennsylvania 300 Market Street, P.O. Box 967 23- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from to Commission file number 0-17077 PENNS WOODS BANCORP, INC. (Exact name of registrant as specified in its charter) | Title of each class | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended September 30, 2022. ☐ Transition report pursuant to Section 13 or 15 (d) of the Exchange Act For the Transition Period from to . No. 0-17077 (Commission File Number) PENNS WOODS BANCORP INC. (Exact name of Registrant as specified in its charter) Pennsylvania 300 Market Street, P.O. Box 967 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2022. ☐ Transition report pursuant to Section 13 or 15 (d) of the Exchange Act For the Transition Period from to . No. 0-17077 (Commission File Number) PENNS WOODS BANCORP INC. (Exact name of Registrant as specified in its charter) Pennsylvania 300 Market Street, P.O. Box 967 23-2 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2022. ☐ Transition report pursuant to Section 13 or 15 (d) of the Exchange Act For the Transition Period from to . No. 0-17077 (Commission File Number) PENNS WOODS BANCORP INC. (Exact name of Registrant as specified in its charter) Pennsylvania 300 Market Street, P.O. Box 967 23- ...

Interest Income and Expenses - Reported net interest income increased by $1,495,000 to $49,718,000 for the year ended December 31, 2021, compared to 2020, despite a decrease in yield on earning assets to 3.35% from 3.80%[104] - Total interest income decreased by $4,224,000 for 2021, primarily due to a decrease in the tax equivalent yield on the loan portfolio, which fell by 28 basis points[104] - Interest expense decreased by $5,719,000 to $8,696,000 for the year ended December 31, 2021, driven by a 51 basis point decrease in the average rate paid on interest-bearing deposits[105] - Total interest income for 2021 was $58,414,000, down from $62,638,000 in 2020[112] - Net interest income on a fully taxable equivalent basis for 2021 was $50,167,000, compared to $48,699,000 in 2020[112] - The interest rate spread for 2021 was 2.64%, compared to 2.61% in 2020[109] - The average yield on total interest-earning assets decreased to 3.35% in 2021 from 3.80% in 2020[109] Loan Portfolio and Allowance for Loan Losses - The allowance for loan losses increased from $13,803,000 at December 31, 2020 to $14,176,000 at December 31, 2021, representing 1.02% of total loans[118] - The provision for loan losses totaled $640,000 for the year ended December 31, 2021, a significant decrease from $2,625,000 in 2020[119] - Nonperforming loans decreased by $4,084,000 in 2021 as the economic environment improved[119] - The total amount of loans with variable interest rates was $1,077,110,000, which is approximately 77.3% of total loans[140] - The total amount of loans with fixed interest rates was $314,736,000, accounting for about 22.7% of total loans[140] - The allowance for loan losses at the end of 2021 was $14,176,000, an increase from $13,803,000 in 2020, reflecting a 2.69% growth[150] - The ratio of allowance for loan losses to total loans was 1.02% as of December 31, 2021, compared to 1.03% in 2020[151] - Non-accrual loans decreased to $5,389,000 in 2021 from $9,122,000 in 2020, indicating improved loan portfolio performance[156] Non-Interest Income and Expenses - Total non-interest income decreased by $499,000 from 2020 to 2021, with a notable decrease in net securities gains by $893,000[122] - Debit card income increased by $231,000 in 2021, attributed to a rise in debit card usage as COVID-19 restrictions eased[122] - Total non-interest expenses increased by $1,837,000 from 2020 to 2021, driven by routine wage increases and a return to full staffing levels[126] - Total non-interest expenses increased to $40,905,000 in 2021, up from $39,068,000 in 2020, reflecting an increase of about 5%[196] Assets and Equity - The total assets increased to $1,889,942,000 in 2021 from $1,780,104,000 in 2020[109] - Shareholders' equity rose by $8,128,000 to $172,274,000 at December 31, 2021, resulting in a book value per share of $24.37[162] - The Corporation's total assets increased to $1,940,809,000 in 2021 from $1,834,643,000 in 2020, representing a growth of approximately 5.8%[194] - The total liabilities of the Corporation were $1,768,535,000 in 2021, compared to $1,670,497,000 in 2020, showing an increase of approximately 5.9%[194] Cash Flow and Financing Activities - Net cash provided by operating activities decreased to $17,923,000 in 2021 from $22,000,000 in 2020, reflecting a decline of 18.9%[204] - The net cash used for investing activities was $55,979,000 in 2021, compared to a net cash provided of $10,739,000 in 2020, indicating a significant shift in investment strategy[204] - The net cash provided by financing activities was $88,560,000 in 2021, down from $153,508,000 in 2020, indicating a change in financing strategy[204] Regulatory and Compliance - The Corporation's common equity tier 1 capital to risk-weighted assets was 10.791% at December 31, 2021, exceeding the minimum requirement of 7.000%[164] - Management evaluated the Federal Home Loan Bank stock and concluded it was not impaired, maintaining regulatory capital ratios above requirements[287] Earnings and Dividends - Consolidated net income rose to $16,048,000 in 2021, compared to $15,224,000 in 2020, marking an increase of approximately 5%[199] - Earnings per share (basic and diluted) increased to $2.27 in 2021 from $2.16 in 2020, representing a growth of about 5%[196] - Dividends declared for the twelve months ended December 31, 2021, were $1.28 per share, consistent with the previous year[162] Investment Portfolio - The fair value of the investment portfolio increased by $4,109,000 from December 31, 2020, to December 31, 2021, reaching $167,698,000[133] - Approximately 85% of the debt securities portfolio is rated A or higher, indicating strong credit quality[133] - The total amortized cost of investment securities as of December 31, 2021, was $163,406,000, with a fair value of $166,410,000[275] Accounting Standards Updates - The Company is currently evaluating the impact of various ASUs on its financial position and results of operations[257][263][264] - ASU 2020-06 simplifies accounting for certain financial instruments, effective for public business entities after December 15, 2021, and for all other entities after December 15, 2023[259]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended September 30, 2021. ☐ Transition report pursuant to Section 13 or 15 (d) of the Exchange Act For the Transition Period from to . No. 0-17077 (Commission File Number) PENNS WOODS BANCORP INC. (Exact name of Registrant as specified in its charter) Pennsylvania 300 Market Street, P.O. Box 967 ...