Penns Woods Bancorp, Inc. Reports First Quarter 2025 Earnings

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]