Penns Woods Bancorp(PWOD) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for the nine months ended September 30, 2024, was $14.0 million, with basic and diluted earnings per share of $1.86, compared to $11.1 million and $1.56 for the same period in 2023, representing a 26.1% increase in net income [2]. - Core earnings for the nine months ended September 30, 2024, were $14.0 million, with core earnings per share of $1.86, compared to $11.2 million and $1.55 for the same period in 2023 [5]. - Income before income tax provision surged by 119.79% to $5,853,000, compared to $2,663,000 in the prior year [18]. - Net income available to common shareholders increased by 115.87% to $4,801,000, up from $2,224,000 year-over-year [18]. - Basic earnings per share rose by 106.45% to $0.64, compared to $0.31 in the same quarter last year [18]. - GAAP net income for the three months ended September 30, 2024, was $4,801,000, compared to $2,224,000 for the same period in 2023, representing a significant increase [26]. - Non-GAAP core earnings for the three months ended September 30, 2024, were $4,773,000, up from $2,288,000 in the prior year, indicating strong operational performance [26]. Asset and Equity Growth - Total assets rose to $2.3 billion at September 30, 2024, an increase of $82.8 million compared to the previous year, with net loans increasing by $58.0 million to $1.9 billion [9]. - Shareholders' equity increased by $29.2 million to $203.7 million at September 30, 2024, with a book value per share of $26.96 compared to $24.55 in 2023 [12]. - Total assets increased by 3.80% to $2,259,250,000 from $2,176,468,000 [17]. - Total shareholders' equity increased by 16.70% to $203,694,000 from $174,540,000 [17]. - Total assets reached $2,220,944,000 as of September 30, 2024, compared to $2,092,034,000 in the previous year, reflecting a growth of 6.2% [21]. - Total shareholders' equity increased to $203,694,000 as of September 30, 2024, from $197,087,000 a year earlier, indicating a solid capital position [26]. - Book value per share improved to $26.96 as of September 30, 2024, compared to $26.13 in the prior year, reflecting growth in shareholder equity [26]. Loan and Deposit Trends - Deposits increased by $133.1 million to $1.7 billion at September 30, 2024, with interest-bearing deposits growing by $151.6 million [11]. - Total loans as of September 30, 2024, amounted to $1,861,973,000, compared to $1,734,968,000 in 2023, marking an increase of 7.3% [21]. - Total interest-bearing deposits increased to $1,189,548,000 for the three months ended September 30, 2024, from $1,084,765,000 in 2023, representing a rise of 9.7% [21]. - Total deposits grew by 8.49% to $1,700,321,000 from $1,567,267,000 [17]. Interest Income and Expense - The net interest margin for the three months ended September 30, 2024, was 2.88%, up from 2.65% in the same period of 2023, driven by an increase in interest-earning asset rates [8]. - Total interest and dividend income increased by 17.84% year-over-year to $28,188,000 for the three months ended September 30, 2024 [18]. - Total interest income for the three months ended September 30, 2024, was $28,188,000, compared to $23,921,000 for the same period in 2023, representing an increase of 17.6% [20]. - Total interest expense increased by 24.02% to $13,132,000, primarily due to higher deposit costs [18]. - Total interest expense increased to $13,132,000 for the three months ended September 30, 2024, from $10,589,000 in the prior year, reflecting a rise of 24.1% [20]. Credit Quality - The allowance for credit losses included a provision of $740,000 for the three months ended September 30, 2024, compared to $1.4 million for the same period in 2023, indicating improved credit quality [3]. - The ratio of non-performing loans to total loans increased to 0.42% at September 30, 2024, from 0.20% a year earlier, with non-performing loans rising to $7.9 million [10]. - Provision for credit losses decreased by 46.06% to $740,000, indicating improved credit quality [18]. Operational Efficiency - The efficiency ratio improved to 62.26%, down from 66.25% in the previous quarter, indicating better operational efficiency [24]. - Non-interest expense decreased slightly by 2.58% to $10,884,000, reflecting cost management efforts [18]. - Non-interest expense decreased to $10,884 thousand from $10,996 thousand in the previous quarter, a reduction of 1.0% [24].