On July 25, 2024, Penns Woods Bancorp Inc (PWOD, Financial) released its 8-K filing for the second quarter of 2024. Penns Woods Bancorp Inc is the bank holding company for Jersey Shore State Bank and Luzerne Bank, serving customers in North Central and North Eastern Pennsylvania through various banking and financial services.
Performance Overview
Penns Woods Bancorp Inc reported a net income of $5.4 million for the three months ended June 30, 2024, compared to $4.2 million for the same period in 2023. For the six months ended June 30, 2024, net income was $9.2 million, up from $8.8 million in the prior year. Basic and diluted earnings per share for the three and six months ended June 30, 2024, were $0.72 and $1.22, respectively, compared to $0.59 and $1.25 for the same periods in 2023.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Income | $5.4 million | $4.2 million | 28.57% |
| Net Interest Income | $14.5 million | $13.4 million | 8.21% |
| Net Interest Margin | 2.83% | 2.77% | 2.17% |
| Annualized Return on Average Assets | 0.97% | 0.80% | 21.25% |
| Annualized Return on Average Equity | 11.12% | 9.53% | 16.67% |
Income Statement Highlights
Net interest income for the three months ended June 30, 2024, was $14.5 million, an increase from $13.4 million in the same period of 2023. This growth was driven by a $1.1 million increase in net interest income due to the stabilization of the cost of funds, resulting in a 14 basis point increase in the net interest margin for Q2 2024 compared to Q1 2024.
Non-interest income remained relatively stable at $2.0 million for Q2 2024, compared to $2.0 million in Q2 2023. Non-interest expense decreased by 3.79% to $11.0 million in Q2 2024 from $11.4 million in Q2 2023.
Balance Sheet and Asset Quality
Total assets increased to $2.2 billion as of June 30, 2024, up from $2.1 billion as of June 30, 2023. Net loans grew by $97.2 million to $1.9 billion, driven by commercial loan growth and indirect auto lending. The investment portfolio also saw an increase of $11.4 million.
The ratio of non-performing loans to total loans rose to 0.36% at June 30, 2024, from 0.24% at June 30, 2023. Despite this increase, the allowance for credit losses was 0.60% of total loans at June 30, 2024, compared to 0.66% at June 30, 2023.
Deposits and Shareholders' Equity
Total deposits increased by $94.3 million to $1.6 billion as of June 30, 2024. Interest-bearing deposits grew by $109.2 million, while noninterest-bearing deposits decreased by $14.8 million. Shareholders' equity rose to $197.1 million, a 13.01% increase from $174.4 million as of June 30, 2023.
Basic and diluted core earnings per share (non-GAAP) for the three and six months ended June 30, 2024, were $0.72 and $1.23, respectively, compared to $0.60 and $1.26 for the same periods in 2023.
Analysis
Penns Woods Bancorp Inc's performance in Q2 2024 reflects a solid increase in net income and net interest income, driven by a stabilizing cost of funds and strategic loan growth. The increase in non-performing loans is a point of concern, but the company's strong allowance for credit losses and minimal loan charge-offs provide a buffer against potential risks. The growth in deposits and shareholders' equity further strengthens the company's financial position.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Penns Woods Bancorp Inc for further details.
