Penns Woods Bancorp(PWOD) - 2024 Q4 - Annual Results

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]