Penns Woods Bancorp, Inc. Reports First Quarter 2025 Earnings

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].