WILLIAMSPORT, Pa., Oct. 22, 2021 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

Penns Woods Bancorp, Inc. achieved net income of $11.2 million for the nine months ended September 30, 2021, resulting in basic and diluted earnings per share of $1.58.

Highlights

Net income, as reported under GAAP, for the three and nine months ended September 30, 2021 was $4.1 million and $11.2 million, respectively, compared to $4.5 million and $11.3 million for the same periods of 2020. Results for the three and nine months ended September 30, 2021 compared to 2020 were impacted by a decrease in after-tax securities gains of $767,000 (from a gain of $799,000 to a gain of $32,000) for the three month period and a decrease in after-tax securities gains of $739,000 (from a gain of $975,000 to a gain of $236,000) for the nine month period.
The provision for loan losses decreased $570,000 and $1.1 million, respectively, for the three and nine months ended September 30, 2021, to $75,000 and $940,000 compared to $645,000 and $2.0 million for the 2020 periods. The provision for loan losses was elevated in 2020 due primarily to the uncertainty caused by the COVID-19 pandemic.
Basic and diluted earnings per share for the three and nine months ended September 30, 2021 were $0.58 and $1.58, respectively. Basic and diluted earnings per share for the three and nine months ended September 30, 2020 were $0.63 and $1.61, respectively.
Return on average assets was 0.86% for three months ended September 30, 2021, compared to 0.97% for the corresponding period of 2020. Return on average assets was 0.79% for the nine months ended September 30, 2021, compared to 0.85% for the corresponding period of 2020.
Return on average equity was 9.85% for the three months ended September 30, 2021, compared to 11.05% for the corresponding period of 2020. Return on average equity was 9.17% for the nine months ended September 30, 2021, compared to 9.57% for the corresponding period of 2020.

COVID-19 Activity

Approximately one third of employees working remotely.
As of September 30, 2021, loan modification/deferral program in place to defer payments up to 180 days for principal and/or interest with only $1.3 million in loan principal remaining in deferral.
All COVID-19 related loan deferrals meet the requirements to not be considered a troubled debt restructuring.
Participated in the Paycheck Protection Program ("PPP") by primarily utilizing third parties to service and place the loans.
Significantly reduced deposit rates during the latter half of March 2020 continuing through September 2021.
Total paycheck protection program loans originated to be held on balance sheet totaled $30.6 million with $10.6 million remaining on the balance sheet at September 30, 2021.

Net Income

Net income from core operations ("core earnings"), which is a non-generally accepted accounting principles (GAAP) measure of net income excluding net securities gains or losses, was $4.1 million for the three months ended September 30, 2021 compared to $3.7 million for the same period of 2020. Core earnings were $10.9 million for the nine months ended September 30, 2021, compared to $10.3 million for the same period of 2020. Core earnings per share for the three months ended September 30, 2021 were $0.58 basic and diluted, compared to $0.52 basic and diluted core earnings per share for the same period of 2020. Core earnings per share for the nine months ended September 30, 2021 were $1.55 basic and diluted, compared to $1.47 basic and diluted for the same period of 2020. Core return on average assets and core return on average equity were 0.86% and 9.78% for the three months ended September 30, 2021, compared to 0.79% and 9.08% for the corresponding period of 2020. Core return on average assets and core return on average equity were 0.77% and 8.98% for the nine months ended September 30, 2021 compared to 0.78% and 8.75% for the corresponding period of 2020. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, and core earnings per share described in this press release to the comparable GAAP financial measures is included at the end of this press release.

Net Interest Margin

The net interest margin for the three and nine months ended September 30, 2021 was 2.85% and 2.84%, compared to 2.76% and 2.97% for the corresponding period of 2020. The increase in the net interest margin for the nine month period was driven by a decrease in the yield of the loan portfolio of 19 and 32 basis points ("bps"), while the investment portfolio yield declined 51 and 59 bps, respectively, during the current low interest rate environment. Further compressing the net interest margin was the significant increase of interest-bearing deposits. These deposits carry a current yield of a few basis points and have increased in average balance as commercial customers have received PPP funding and retail customers have received stimulus funding. Rates paid on interest-bearing deposit liabilities decreased 48 and 53 bps as rates paid were decreased significantly during 2020 due to the economic impact of COVID-19 prolonging the low interest rate environment. These deposit rate decreases have partially offset the decline in earning asset yield.

Assets

Total assets increased $70.0 million to $1.9 billion at September 30, 2021 compared to September 30, 2020. Cash and cash equivalents increased significantly due to deposit growth resulting from the various economic recovery programs instituted at the state and federal levels that impacted both commercial and retail customers, coupled with customers becoming more risk averse and seeking safety in a bank deposit. Net loans decreased $3.0 million to $1.3 billion at September 30, 2021 compared to September 30, 2020, as the COVID-19 business and travel restrictions and supply chain interruptions curtailed various lending activities such as indirect auto, home equity, and commercial. Lending activity began to rebound as business and travel restrictions were lessened during the second half of 2020 and continues to rebound in 2021. The investment portfolio increased $16.7 million from September 30, 2020 to September 30, 2021 as a portion of the excess cash liquidity was invested into short-term municipal bonds.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.58% at September 30, 2021 from 0.78% at September 30, 2020 as non-performing loans have decreased to $7.8 million at September 30, 2021 from $10.6 million at September 30, 2020, primarily due to a commercial loan relationship that was paid-off during the fourth quarter of 2020. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses. Net loan charge-offs of $186,000 for the nine months ended September 30, 2021 impacted the allowance for loan losses, which was 1.08% of total loans at September 30, 2021 compared to 1.00% at September 30, 2020.

Deposits

Deposits increased $101.2 million to $1.6 billion at September 30, 2021 compared to September 30, 2020. Noninterest-bearing deposits increased $47.6 million to $481.9 million at September 30, 2021 compared to September 30, 2020. Driving deposit growth was the receipt of PPP funding by commercial customers, stimulus funding by retail customers, and customers becoming more risk averse and seeking safety in a bank deposit. Emphasis remains on increasing the utilization of electronic (internet and mobile) deposit banking among our customers. Utilization of internet and mobile banking has increased since the start of 2020 due to these efforts coupled with a change in consumer behavior due to the business and travel restrictions caused by the COVID-19 pandemic. The increased level of deposits has allowed for a decrease in short and long-term borrowings.

Shareholders' Equity

Shareholders' equity increased $6.1 million to $168.5 million at September 30, 2021 compared to September 30, 2020. Accumulated other comprehensive loss of $2.0 million at September 30, 2021 increased from a loss of $678,000 at September 30, 2020 primarily as a result of a decrease of $936,000 in the net unrealized gain on available for sale securities. The current level of shareholders' equity equates to a book value per share of $23.84 at September 30, 2021 compared to $23.05 at September 30, 2020, and an equity to asset ratio of 8.82% at September 30, 2021 and September 30, 2020. Dividends declared for the nine months ended September 30, 2021 and 2020 were $0.96 per share..

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates eighteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products. Investment and insurance products are offered through Jersey Shore State Bank's subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company's performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company's core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain "forward-looking statements" including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company's organization, compensation and benefit plans; (iii) the effect on the Company's competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; or (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies. For a list of other factors which could affect the Company's results, see the Company's filings with the Securities and Exchange Commission, including "Item 1A. Risk Factors," set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Previous press releases and additional information can be obtained from the Company's website at www.pwod.com.

Contact:	Richard A. Grafmyre, Chief Executive Officer
	110 Reynolds Street
	Williamsport, PA 17702
	570-322-1111	e-mail: pwod@pwod.com

PENNS WOODS BANCORP, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	September 30,
(In Thousands, Except Share Data)	2021			2020			% Change
ASSETS:
Noninterest-bearing balances	$	35,523		$	34,987		1.53		%
Interest-bearing balances in other financial institutions	206,124			191,285			7.76		%
Federal funds sold	40,000			—			n/a
Total cash and cash equivalents	281,647			226,272			24.47		%

Investment debt securities, available for sale, at fair value	166,760			149,675			11.41		%
Investment equity securities, at fair value	1,263			1,291			(2.17	)	%
Investment securities, trading	40			35			14.29		%
Restricted investment in bank stock, at fair value	14,649			15,006			(2.38	)	%
Loans held for sale	3,246			6,647			(51.17	)	%
Loans	1,347,225			1,349,140			(0.14	)	%
Allowance for loan losses	(14,557		)	(13,429		)	8.40		%
Loans, net	1,332,668			1,335,711			(0.23	)	%
Premises and equipment, net	34,434			32,886			4.71		%
Accrued interest receivable	8,529			8,540			(0.13	)	%
Bank-owned life insurance	33,836			33,474			1.08		%
Investment in limited partnerships	5,014			2,524			98.65		%
Goodwill	17,104			17,104			—		%
Intangibles	524			724			(27.62	)	%
Operating lease right of use asset	2,899			3,184			(8.95	)	%
Deferred tax asset	4,049			3,409			18.77		%
Other assets	4,129			4,297			(3.91	)	%
TOTAL ASSETS	$	1,910,791		$	1,840,779		3.80		%

LIABILITIES:
Interest-bearing deposits	$	1,111,144		$	1,057,562		5.07		%
Noninterest-bearing deposits	481,875			434,248			10.97		%
Total deposits	1,593,019			1,491,810			6.78		%

Short-term borrowings	9,404			15,009			(37.34	)	%
Long-term borrowings	126,007			153,534			(17.93	)	%
Accrued interest payable	828			1,491			(44.47	)	%
Operating lease liability	2,947			3,219			(8.45	)	%
Other liabilities	10,105			13,287			(23.95	)	%
TOTAL LIABILITIES	1,742,310			1,678,350			3.81		%

SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued	—			—			n/a
Common stock, par value $5.55, 22,500,000 shares authorized; 7,545,922 and 7,527,605 shares issued; 7,065,697 and 7,047,380 shares outstanding	41,921			41,820			0.24		%
Additional paid-in capital	53,508			52,268			2.37		%
Retained earnings	87,146			81,127			7.42		%
Accumulated other comprehensive gain (loss):
Net unrealized gain on available for sale securities	3,504			4,440			(21.08	)	%
Defined benefit plan	(5,486		)	(5,118		)	7.19		%
Treasury stock at cost, 480,225	(12,115		)	(12,115		)	—		%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY	168,478			162,422			3.73		%
Non-controlling interest	3			7			(57.14	)	%
TOTAL SHAREHOLDERS' EQUITY	168,481			162,429			3.73		%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,910,791		$	1,840,779		3.80		%

PENNS WOODS BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	Three Months Ended September 30,										Nine Months Ended September 30,
(In Thousands, Except Per Share Data)	2021			2020			% Change				2021			2020			% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	13,382		$	14,080		(4.96	)	%		$	39,826		$	43,403		(8.24	)	%
Investment securities:
Taxable	834			925			(9.84	)	%		2,491			2,958			(15.79	)	%
Tax-exempt	160			170			(5.88	)	%		495			484			2.27		%
Dividend and other interest income	338			212			59.43		%		903			747			20.88		%
TOTAL INTEREST AND DIVIDEND INCOME	14,714			15,387			(4.37	)	%		43,715			47,592			(8.15	)	%

INTEREST EXPENSE:
Deposits	1,308			2,569			(49.09	)	%		4,481			8,406			(46.69	)	%
Short-term borrowings	3			8			(62.50	)	%		7			37			(81.08	)	%
Long-term borrowings	771			965			(20.10	)	%		2,430			2,893			(16.00	)	%
TOTAL INTEREST EXPENSE	2,082			3,542			(41.22	)	%		6,918			11,336			(38.97	)	%

NET INTEREST INCOME	12,632			11,845			6.64		%		36,797			36,256			1.49		%

PROVISION FOR LOAN LOSSES	75			645			(88.37	)	%		940			2,040			(53.92	)	%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	12,557			11,200			12.12		%		35,857			34,216			4.80		%

NON-INTEREST INCOME:
Service charges	456			388			17.53		%		1,218			1,249			(2.48	)	%
Debt securities gains, available for sale	48			1,013			(95.26	)	%		323			1,220			(73.52	)	%
Equity securities (losses) gains	(6		)	—			n/a				(25		)	30			(183.33	)	%
Securities (losses) gains, trading	(2		)	(2		)	—		%		1			(16		)	106.25		%
Bank-owned life insurance	279			156			78.85		%		614			492			24.80		%
Gain on sale of loans	456			1,449			(68.53	)	%	.	2,034			2,921			(30.37	)	%
Insurance commissions	129			101			27.72		%		436			320			36.25		%
Brokerage commissions	237			224			5.80		%		663			779			(14.89	)	%
Debit card income	388			352			10.23		%		1,166			936			24.57		%
Other	966			354			172.88		%		2,044			1,162			75.90		%
TOTAL NON-INTEREST INCOME	2,951			4,035			(26.86	)	%		8,474			9,093			(6.81	)	%

NON-INTEREST EXPENSE:
Salaries and employee benefits	5,837			5,465			6.81		%		17,107			16,362			4.55		%
Occupancy	745			599			24.37		%		2,438			1,927			26.52		%
Furniture and equipment	883			837			5.50		%		2,663			2,525			5.47		%
Software amortization	226			257			(12.06	)	%		632			743			(14.94	)	%
Pennsylvania shares tax	373			340			9.71		%		1,097			948			15.72		%
Professional fees	615			608			1.15		%		1,882			1,888			(0.32	)	%
Federal Deposit Insurance Corporation deposit insurance	220			271			(18.82	)	%		705			650			8.46		%
Marketing	231			61			278.69		%		434			170			155.29		%
Intangible amortization	44			53			(16.98	)	%		147			174			(15.52	)	%
Other	1,273			1,216			4.69		%		3,541			4,041			(12.37	)	%
TOTAL NON-INTEREST EXPENSE	10,447			9,707			7.62		%		30,646			29,428			4.14		%
INCOME BEFORE INCOME TAX PROVISION	5,061			5,528			(8.45	)	%		13,685			13,881			(1.41	)	%
INCOME TAX PROVISION	932			1,051			(11.32	)	%		2,516			2,563			(1.83	)	%
NET INCOME	$	4,129		$	4,477		(7.77	)	%		$	11,169		$	11,318		(1.32	)	%
Earnings attributable to noncontrolling interest	4			5			(20.00	)	%		15			13			15.38		%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'	$	4,125		$	4,472		(7.76	)	%		$	11,154		$	11,305		(1.34	)	%
EARNINGS PER SHARE - BASIC	$	0.58		$	0.63		(7.94	)	%		$	1.58		$	1.61		(1.86	)	%
EARNINGS PER SHARE - DILUTED	$	0.58		$	0.63		(7.94	)	%		$	1.58		$	1.61		(1.86	)	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC	7,063,994			7,045,336			0.26		%		7,059,625			7,042,578			0.24		%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED	7,063,994			7,045,336			0.26		%		7,059,625			7,042,578			0.24		%
DIVIDENDS DECLARED PER SHARE	$	0.32		$	0.32		—		%		$	0.96		$	0.96		—		%

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

	Three Months Ended
	September 30, 2021						September 30, 2020
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	46,193	$	307	2.64	%	$	42,047	$	386	3.65	%
All other loans	1,296,790		13,139		4.02	%	1,313,474		13,775		4.17	%
Total loans	1,342,983		13,446		3.97	%	1,355,521		14,161		4.16	%

Federal funds sold	40,000		72		0.71	%	—		—		—	%

Taxable securities	150,308		1,022		2.76	%	140,695		1,116		3.23	%
Tax-exempt securities	37,069		203		2.22	%	30,587		216		2.87	%
Total securities	187,377		1,225		2.65	%	171,282		1,332		3.16	%

Interest-bearing deposits	205,715		78		0.15	%	203,817		21		0.04	%

Total interest-earning assets	1,776,075		14,821		3.32	%	1,730,620		15,514		3.57	%

Other assets	132,820						121,901

TOTAL ASSETS	$	1,908,895					$	1,852,521

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	228,255	22		0.04	%	$	199,420	51		0.10	%
Super Now deposits	308,591		219		0.28	%	273,190		489		0.71	%
Money market deposits	306,177		238		0.31	%	263,926		330		0.50	%
Time deposits	248,649		829		1.32	%	329,190		1,699		2.05	%
Total interest-bearing deposits	1,091,672		1,308		0.48	%	1,065,726		2,569		0.96	%

Short-term borrowings	8,696		3		0.14	%	17,517		8		0.18	%
Long-term borrowings	133,536		771		2.29	%	165,064		965		2.33	%
Total borrowings	142,232		774		2.16	%	182,581		973		2.12	%

Total interest-bearing liabilities	1,233,904		2,082		0.67	%	1,248,307		3,542		1.13	%

Demand deposits	490,500						424,753
Other liabilities	17,027						17,644
Shareholders' equity	167,464						161,817

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,908,895					$	1,852,521
Interest rate spread					2.65	%					2.44	%
Net interest income/margin			$	12,739	2.85	%			$	11,972	2.76	%

	Three Months Ended September 30,
	2021		2020
Total interest income	$	14,714	$	15,387
Total interest expense	2,082		3,542
Net interest income	12,632		11,845
Tax equivalent adjustment	107		127
Net interest income (fully taxable equivalent)	$	12,739	$	11,972

	Nine Months Ended
	September 30, 2021						September 30, 2020
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	46,217	$	991	2.87	%	$	46,476	$	1,138	3.27	%
All other loans	1,292,028		39,043		4.04	%	1,304,207		42,504		4.35	%
Total loans	1,338,245		40,034		4.00	%	1,350,683		43,642		4.32	%

Federal funds sold	21,993		117		0.71	%	—		—		—	%

Taxable securities	147,942		3,105		2.84	%	143,601		3,582		3.38	%
Tax-exempt securities	36,638		627		2.31	%	27,558		613		3.02	%
Total securities	184,580		3,732		2.73	%	171,159		4,195		3.32	%

Interest-bearing deposits	206,895		172		0.11	%	125,447		123		0.13	%

Total interest-earning assets	1,751,713		44,055		3.37	%	1,647,289		47,960		3.89	%

Other assets	128,567						116,868

TOTAL ASSETS	$	1,880,280					$	1,764,157

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	222,889	94		0.06	%	$	189,205	209		0.15	%
Super Now deposits	294,570		694		0.31	%	248,327		1,322		0.71	%
Money market deposits	307,309		761		0.33	%	234,772		1,225		0.70	%
Time deposits	253,130		2,932		1.55	%	356,897		5,650		2.11	%
Total interest-bearing deposits	1,077,898		4,481		0.56	%	1,029,201		8,406		1.09	%

Short-term borrowings	7,152		7		0.13	%	13,195		37		0.37	%
Long-term borrowings	138,669		2,430		2.34	%	165,702		2,893		2.33	%
Total borrowings	145,821		2,437		2.23	%	178,897		2,930		2.19	%

Total interest-bearing liabilities	1,223,719		6,918		0.76	%	1,208,098		11,336		1.25	%

Demand deposits	473,088						378,889
Other liabilities	21,327						19,682
Shareholders' equity	162,146						157,488

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,880,280					$	1,764,157
Interest rate spread					2.61	%					2.64	%
Net interest income/margin			$	37,137	2.84	%			$	36,624	2.97	%

	Nine Months Ended September 30,
	2021		2020
Total interest income	$	43,715	$	47,592
Total interest expense	6,918		11,336
Net interest income	36,797		36,256
Tax equivalent adjustment	340		368
Net interest income (fully taxable equivalent)	$	37,137	$	36,624

(Dollars in Thousands, Except Per Share Data)	Quarter Ended
	9/30/2021				6/30/2021			3/31/2021			12/31/2020			9/30/2020
Operating Data
Net income	$	4,125			$	3,588		$	3,441		$	3,901		$	4,472
Net interest income	12,632				12,095			12,070			11,967			11,845
Provision for loan losses	75				350			515			585			645
Net security gains	40				140			119			374			1,011
Non-interest income, excluding net security gains	2,911				2,769			2,495			2,701			3,024
Non-interest expense	10,447				10,248			9,951			9,640			9,707

Performance Statistics
Net interest margin	2.85			%	2.78		%	2.88		%	2.81		%	2.76		%
Annualized return on average assets	0.86			%	0.76		%	0.75		%	0.85		%	0.97		%
Annualized return on average equity	9.85			%	8.70		%	8.59		%	9.55		%	11.05		%
Annualized net loan charge-offs (recoveries) to average loans	(0.01		)	%	0.03		%	0.04		%	0.06		%	0.06		%
Net charge-offs (recoveries)	(44		)		114			116			211			193
Efficiency ratio	66.93			%	68.61		%	67.96		%	65.36		%	64.89		%

Per Share Data
Basic earnings per share	$	0.58			$	0.51		$	0.49		$	0.55		$	0.63
Diluted earnings per share	0.58				0.51			0.49			0.55			0.63
Dividend declared per share	0.32				0.32			0.32			0.32			0.32
Book value	23.84				23.63			23.25			23.27			23.05
Common stock price:		21.12				21.12
High	24.42				26.51			27.78			27.30			22.83
Low	22.78				23.03			20.55			19.61			19.61
Close	23.92				23.82			24.09			26.01			19.85
Weighted average common shares:
Basic	7,064				7,060			7,055			7,050			7,045
Fully Diluted	7,064				7,060			7,055			7,050			7,045
End-of-period common shares:
Issued	7,546				7,542			7,537			7,533			7,528
Treasury	480				480			480			480			480

(Dollars in Thousands, Except Per Share Data)	Quarter Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Financial Condition Data:
General
Total assets	$	1,910,791		$	1,894,870		$	1,896,192		$	1,834,643		$	1,840,779
Loans, net	1,332,668			1,323,509			1,321,697			1,330,524			1,335,711
Goodwill	17,104			17,104			17,104			17,104			17,104
Intangibles	524			568			618			671			724
Total deposits	1,593,019			1,563,696			1,564,364			1,494,443			1,491,810
Noninterest-bearing	481,875			477,344			478,916			449,357			434,248
Savings	231,189			226,573			224,890			209,924			202,781
NOW	340,441			296,450			290,355			287,775			268,463
Money Market	305,156			301,405			324,207			283,742			274,480
Time Deposits	234,358			261,924			245,996			263,645			311,838
Total interest-bearing deposits	1,111,144			1,086,352			1,085,448			1,045,086			1,057,562

Core deposits*	1,358,661			1,301,772			1,318,368			1,230,798			1,179,972
Shareholders' equity	168,478			166,830			164,059			164,142			162,422

Asset Quality
Non-performing loans	$	7,763		$	7,931		$	9,272		$	10,334		$	10,553
Non-performing loans to total assets	0.41		%	0.42		%	0.49		%	0.56		%	0.57		%
Allowance for loan losses	14,557			14,438			14,202			13,803			13,429
Allowance for loan losses to total loans	1.08		%	1.08		%	1.06		%	1.03		%	1.00		%
Allowance for loan losses to non-performing loans	187.52		%	182.05		%	153.17		%	133.57		%	127.25		%
Non-performing loans to total loans	0.58		%	0.59		%	0.69		%	0.77		%	0.78		%

Capitalization
Shareholders' equity to total assets	8.82		%	8.80		%	8.65		%	8.95		%	8.82		%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in Thousands, Except Per Share Data)	2021			2020			2021			2020
GAAP net income	$	4,125		$	4,472		$	11,154		$	11,305
Less: net securities gains, net of tax	32			799			236			975
Non-GAAP core earnings	$	4,093		$	3,673		$	10,918		$	10,330

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Return on average assets (ROA)	0.86		%	0.97		%	0.79		%	0.85		%
Less: net securities gains, net of tax	—		%	0.18		%	0.02		%	0.07		%
Non-GAAP core ROA	0.86		%	0.79		%	0.77		%	0.78		%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Return on average equity (ROE)	9.85		%	11.05		%	9.17		%	9.57		%
Less: net securities gains, net of tax	0.07		%	1.97		%	0.19		%	0.82		%
Non-GAAP core ROE	9.78		%	9.08		%	8.98		%	8.75		%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Basic earnings per share (EPS)	$	0.58		$	0.63		$	1.58		$	1.61
Less: net securities gains, net of tax	—			0.11			0.03			0.14
Non-GAAP basic core EPS	$	0.58		$	0.52		$	1.55		$	1.47

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Diluted EPS	$	0.58		$	0.63		$	1.58		$	1.61
Less: net securities gains, net of tax	—			0.11			0.03			0.14
Non-GAAP diluted core EPS	$	0.58		$	0.52		$	1.55		$	1.47

COVID-19 Loan Deferrals as of September 30, 2021

(In Thousands)	Amount
Commercial, financial, and agricultural	$	—
Real estate mortgage:
Residential	1,066
Commercial	271
Consumer automobile loans	—
Other consumer installment loans	9
Total loan deferrals	$	1,346

Penns Woods Bancorp, Inc. Reports Third Quarter 2021 Earnings