WILLIAMSPORT, Pa., July 21, 2022 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

Penns Woods Bancorp, Inc. achieved net income of $7.7 million for the six months ended June 30, 2022, resulting in basic and diluted earnings per share of $1.08.

Highlights

Net income, as reported under GAAP, for the three and six months ended June 30, 2022 was $4.2 million and $7.7 million, respectively, compared to $3.6 million and $7.0 million for the same periods of 2021. Results for the three and six months ended June 30, 2022 compared to 2021 were impacted by an increase in after-tax securities losses of $154,000 (from a gain of $111,000 to a loss of $43,000) for the three month period and an increase in after-tax securities losses of $296,000 (from a gain of $205,000 to a loss of $91,000) for the six month period. Results for the three and six months ended June 30, 2022 were impacted by additional compensation expense of $183,000 (after-tax $145,000) associated with the voluntary cash settlement of 346,725 outstanding stock options. In addition, an after-tax loss of $201,000 related to a branch closure negatively impacted results for the six months ended June 30, 2022.
The provision for loan losses decreased $20,000 and $385,000 for the three and six months ended June 30, 2022 to $330,000 and $480,000, respectively, compared to $350,000 and $865,000 for the 2021 periods. The provision for loan losses was elevated during 2021 due primarily to the uncertainty caused by the COVID-19 pandemic.
Basic and diluted earnings per share for the three and six months ended June 30, 2022 were $0.60 and $1.08. Basic and diluted earnings per share for the three and six months ended June 30, 2021 were $0.51 and $1.00.
Annualized return on average assets was 0.88% for three months ended June 30, 2022, compared to 0.76% for the corresponding period of 2021. Annualized return on average assets was 0.80% for the six months ended June 30, 2022, compared to 0.75% for the corresponding period of 2021.
Annualized return on average equity was 10.15% for the three months ended June 30, 2022, compared to 8.70% for the corresponding period of 2021. Annualized return on average equity was 9.20% for the six months ended June 30, 2022, compared to 8.69% for the corresponding period of 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 $4.3 million for the three months ended June 30, 2022 compared to $3.5 million for the same period of 2021. Core earnings were $7.8 million for the six months ended June 30, 2022, compared to $6.8 million for the same period of 2021. Core earnings per share for the three months ended June 30, 2022 were $0.61 basic and diluted, compared to $0.49 basic and diluted core earnings per share for the same period of 2021. Core earnings per share for the six months ended June 30, 2022 were $1.10 basic and diluted, compared to $0.97 basic and diluted for the same period of 2021. Core return on average assets and core return on average equity were 0.89% and 10.25% for the three months ended June 30, 2022, compared to 0.74% and 8.43% for the corresponding period of 2021. Core return on average assets and core return on average equity were 0.81% and 9.31% for the six months ended June 30, 2022 compared to 0.73% and 8.44% for the corresponding period of 2021. Core earnings for the three and six months ended June 30, 2022 were impacted negatively by an after-tax compensation expense of $145,000 relating to the voluntary cash settlement of 346,725 stock options while the six month period ended June 30, 2022 was also impacted negatively by an after-tax loss of $201,000 relating to a branch closure. 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 six months ended June 30, 2022 was 3.12% and 3.03%, compared to 2.78% and 2.83% for the corresponding periods of 2021. The increase in the net interest margin for the three and six month periods was driven by a decline in the rate paid on interest-bearing deposits of 29 and 33 basis points ("bps") as rates paid decreased throughout 2021 and remained at historically low levels during 2022. Leading the decline in the rate paid on interest-bearing deposits were decreases of 98 and 95 bps in the rate paid on time deposits as time deposits issued prior to the COVID-19 pandemic matured. The increase in the earning asset yield was driven by an increase in yield on federal funds sold and interest-bearing deposits due to the rate increases enacted by the Federal Open Market Committee ("FOMC"). For the three and six months ended June 30, 2022 there was an increase in rate on federal funds sold of 57 and 30 bps, respectively, while the rate on interest bearing deposits increased 57 and 26 bps.

Assets

Total assets decreased $3.1 million to $1.9 billion at June 30, 2022 compared to June 30, 2021. Cash and cash equivalents decreased $176.1 million as interest-bearing accounts in other financial institutions decreased $174.9 million. Net loans increased $151.2 million to $1.5 billion at June 30, 2022 compared to June 30, 2021, as an emphasis was placed on commercial loan growth and customers focused on obtaining funding prior to additional FOMC rate increases. The investment portfolio increased $18.9 million from June 30, 2021 to June 30, 2022 as a portion of the excess cash liquidity was invested primarily into short-term municipal bonds with a maturity of five years or less.

Non-performing Loans

The ratio of non-performing loans to total loans ratio decreased to 0.34% at June 30, 2022 from 0.59% at June 30, 2021 as non-performing loans have decreased to $5.1 million at June 30, 2022 from $7.9 million at June 30, 2021. 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 $263,000 for the six months ended June 30, 2022 impacted the allowance for loan losses, which was 0.97% of total loans at June 30, 2022 compared to 1.08% at June 30, 2021.

Deposits

Deposits increased $25.9 million to $1.6 billion at June 30, 2022 compared to June 30, 2021. Noninterest-bearing deposits increased $46.9 million to $524.3 million at June 30, 2022 compared to June 30, 2021. Driving deposit growth was the continued emphasis 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. Interest-bearing deposits decreased due to the maturity of higher cost time deposits. The increased level of deposits has allowed for a $28.2 million decrease in long-term borrowings.

Shareholders' Equity

Shareholders' equity decreased $781,000 to $166.1 million at June 30, 2022 compared to June 30, 2021. Accumulated other comprehensive loss of $9.7 million at June 30, 2022 increased from a loss of $1.4 million at June 30, 2021 as a result of a $6.2 million net unrealized loss on available for sale securities at June 30, 2022 compared to a unrealized gain of $4.1 million at June 30, 2021 coupled with a decrease in loss of $2.1 million in the defined benefit plan obligation. The current level of shareholders' equity equates to a book value per share of $23.56 at June 30, 2022 compared to $23.63 at June 30, 2021, and an equity to asset ratio of 8.78% at June 30, 2022 and 8.80% at June 30, 2021. Dividends declared for the six months ended June 30, 2022 and 2021 were $0.64 per share.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates seventeen 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, 2021.

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)

	June 30,
(In Thousands, Except Share and Per Share Data)		2022			2021		% Change
ASSETS:
Noninterest-bearing balances	$	26,540		$	27,731		(4.29	)%
Interest-bearing balances in other financial institutions		24,452			199,389		(87.74	)%
Federal funds sold		40,000			40,000		—	%
Total cash and cash equivalents		90,992			267,120		(65.94	)%

Investment debt securities, available for sale, at fair value		192,438			171,783		12.02	%
Investment equity securities, at fair value		1,153			1,269		(9.14	)%
Investment securities, trading		33			43		(23.26	)%
Restricted investment in bank stock, at fair value		13,458			15,120		(10.99	)%
Loans held for sale		3,857			4,927		(21.72	)%
Loans		1,489,132			1,337,947		11.30	%
Allowance for loan losses		(14,393	)		(14,438	)	0.31	%
Loans, net		1,474,739			1,323,509		11.43	%
Premises and equipment, net		32,671			34,629		(5.65	)%
Accrued interest receivable		8,246			8,363		(1.40	)%
Bank-owned life insurance		34,115			34,005		0.32	%
Investment in limited partnerships		4,901			4,795		2.21	%
Goodwill		17,104			17,104		—	%
Intangibles		396			568		(30.28	)%
Operating lease right of use asset		2,747			2,946		(6.75	)%
Deferred tax asset		5,689			3,624		56.98	%
Other assets		9,267			5,065		82.96	%
TOTAL ASSETS	$	1,891,806		$	1,894,870		(0.16	)%

LIABILITIES:
Interest-bearing deposits	$	1,065,291		$	1,086,352		(1.94	)%
Noninterest-bearing deposits		524,288			477,344		9.83	%
Total deposits		1,589,579			1,563,696		1.66	%

Short-term borrowings		5,464			7,520		(27.34	)%
Long-term borrowings		112,874			141,051		(19.98	)%
Accrued interest payable		452			961		(52.97	)%
Operating lease liability		2,800			2,992		(6.42	)%
Other liabilities		14,583			11,815		23.43	%
TOTAL LIABILITIES		1,725,752			1,728,035		(0.13	)%

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; 7,559,165 and 7,541,627 shares issued; 7,048,940 and 7,061,042 shares outstanding		41,995			41,897		0.23	%
Additional paid-in capital		53,651			53,205		0.84	%
Retained earnings		92,903			85,281		8.94	%
Accumulated other comprehensive (loss) gain:
Net unrealized (loss) gain on available for sale securities		(6,222	)		4,085		(252.31	)%
Defined benefit plan		(3,458	)		(5,523	)	37.39	%
Treasury stock at cost, 510,225 and 480,225		(12,815	)		(12,115	)	5.78	%
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS' EQUITY		166,054			166,830		(0.47	)%
Non-controlling interest		—			5		(100.00	)%
TOTAL SHAREHOLDERS' EQUITY		166,054			166,835		(0.47	)%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,891,806		$	1,894,870		(0.16	)%

PENNS WOODS BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	Three Months Ended June 30,									Six Months Ended June 30,
(In Thousands, Except Share and Per Share Data)		2022			2021		% Change				2022			2021		% Change
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	13,620		$	13,099		3.98	%		$	26,658		$	26,444		0.81	%
Investment securities:
Taxable		864			838		3.10	%			1,601			1,657		(3.38	)%
Tax-exempt		194			164		18.29	%			358			335		6.87	%
Dividend and other interest income		506			305		65.90	%			842			565		49.03	%
TOTAL INTEREST AND DIVIDEND INCOME		15,184			14,406		5.40	%			29,459			29,001		1.58	%

INTEREST EXPENSE:
Deposits		710			1,489		(52.32	)%			1,498			3,173		(52.79	)%
Short-term borrowings		2			2		—	%			3			4		(25.00	)%
Long-term borrowings		625			820		(23.78	)%			1,258			1,659		(24.17	)%
TOTAL INTEREST EXPENSE		1,337			2,311		(42.15	)%			2,759			4,836		(42.95	)%

NET INTEREST INCOME		13,847			12,095		14.49	%			26,700			24,165		10.49	%

PROVISION FOR LOAN LOSSES		330			350		(5.71	)%			480			865		(44.51	)%

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		13,517			11,745		15.09	%			26,220			23,300		12.53	%

NON-INTEREST INCOME:
Service charges		509			379		34.30	%			1,004			762		31.76	%
Debt securities (losses) gains, available for sale		(10	)		137		(107.30	)%			(12	)		275		(104.36	)%
Equity securities (losses) gains		(41	)		4		(1,125.00	)%			(99	)		(19	)	(421.05	)%
Securities (losses) gains, trading		(3	)		(1	)	(200.00	)%			(4	)		3		(233.33	)%
Bank-owned life insurance		161			162		(0.62	)%			331			335		(1.19	)%
Gain on sale of loans		266			670		(60.30	)%	.		611			1,578		(61.28	)%
Insurance commissions		107			150		(28.67	)%			277			307		(9.77	)%
Brokerage commissions		158			207		(23.67	)%			358			426		(15.96	)%
Loan broker income		371			238		55.88	%			912			677		34.71	%
Debit card income		391			398		(1.76	)%			736			778		(5.40	)%
Other		228			565		(59.65	)%			435			401		8.48	%
TOTAL NON-INTEREST INCOME		2,137			2,909		(26.54	)%			4,549			5,523		(17.64	)%

NON-INTEREST EXPENSE:
Salaries and employee benefits		6,141			5,672		8.27	%			12,405			11,270		10.07	%
Occupancy		740			717		3.21	%			1,650			1,693		(2.54	)%
Furniture and equipment		746			971		(23.17	)%			1,638			1,780		(7.98	)%
Software amortization		219			208		5.29	%			472			406		16.26	%
Pennsylvania shares tax		396			372		6.45	%			785			724		8.43	%
Professional fees		582			684		(14.91	)%			1,120			1,267		(11.60	)%
Federal Deposit Insurance Corporation deposit insurance		228			264		(13.64	)%			430			485		(11.34	)%
Marketing		220			140		57.14	%			284			203		39.90	%
Intangible amortization		41			50		(18.00	)%			85			103		(17.48	)%
Other		1,107			1,170		(5.38	)%			2,558			2,268		12.79	%
TOTAL NON-INTEREST EXPENSE		10,420			10,248		1.68	%			21,427			20,199		6.08	%
INCOME BEFORE INCOME TAX PROVISION		5,234			4,406		18.79	%			9,342			8,624		8.33	%
INCOME TAX PROVISION		1,003			813		23.37	%			1,679			1,584		6.00	%
NET INCOME	$	4,231		$	3,593		17.76	%		$	7,663		$	7,040		8.85	%
Earnings attributable to noncontrolling interest		—			5		(100.00	)%			—			11		(100.00	)%
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS'	$	4,231		$	3,588		17.92	%		$	7,663		$	7,029		9.02	%
EARNINGS PER SHARE - BASIC	$	0.60		$	0.51		17.65	%		$	1.08		$	1.00		8.00	%
EARNINGS PER SHARE - DILUTED	$	0.60		$	0.51		17.65	%		$	1.08		$	1.00		8.00	%
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC		7,059,045			7,059,667		(0.01	)%			7,065,772			7,057,404		0.12	%
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED		7,059,045			7,059,667		(0.01	)%			7,065,772			7,057,404		0.12	%

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

(UNAUDITED)

	Three Months Ended
	June 30, 2022						June 30, 2021
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	52,886	$	331	2.51	%	$	46,926	$	334	2.85	%
All other loans		1,394,631		13,358	3.84	%		1,285,853		12,835	4.00	%
Total loans		1,447,517		13,689	3.79	%		1,332,779		13,169	3.96	%

Federal funds sold		48,352		154	1.28	%		25,538		45	0.71	%

Taxable securities		154,484		1,048	2.75	%		148,415		1,051	2.87	%
Tax-exempt securities		45,824		245	2.17	%		36,469		208	2.31	%
Total securities		200,308		1,293	2.62	%		184,884		1,259	2.76	%

Interest-bearing deposits		102,172		168	0.66	%		218,868		48	0.09	%

Total interest-earning assets		1,798,349		15,304	3.42	%		1,762,069		14,521	3.31	%

Other assets		131,117						128,402

TOTAL ASSETS	$	1,929,466					$	1,890,471

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	248,063		24	0.04	%	$	225,625		28	0.05	%
Super Now deposits		388,002		239	0.25	%		285,672		208	0.29	%
Money market deposits		304,636		210	0.28	%		309,749		256	0.33	%
Time deposits		164,301		237	0.58	%		256,345		997	1.56	%
Total interest-bearing deposits		1,105,002		710	0.26	%		1,077,391		1,489	0.55	%

Short-term borrowings		5,636		2	0.14	%		7,047		2	0.11	%
Long-term borrowings		112,901		625	2.22	%		141,076		820	2.33	%
Total borrowings		118,537		627	2.12	%		148,123		822	2.23	%

Total interest-bearing liabilities		1,223,539		1,337	0.44	%		1,225,514		2,311	0.76	%

Demand deposits		518,467						482,513
Other liabilities		20,708						17,384
Shareholders' equity		166,752						165,060

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,929,466					$	1,890,471
Interest rate spread					2.98	%					2.55	%
Net interest income/margin			$	13,967	3.12	%			$	12,210	2.78	%

	Three Months Ended June 30,
		2022		2021
Total interest income	$	15,184	$	14,406
Total interest expense		1,337		2,311
Net interest income (GAAP)		13,847		12,095
Tax equivalent adjustment		120		115
Net interest income (fully taxable equivalent) (non-GAAP)	$	13,967	$	12,210

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

(UNAUDITED)

	Six Months Ended
	June 30, 2022						June 30, 2021
(Dollars in Thousands)	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
ASSETS:
Tax-exempt loans	$	50,775	$	639	2.54	%	$	46,177	$	684	2.99	%
All other loans		1,372,810		26,153	3.84	%		1,289,660		25,904	4.05	%
Total loans		1,423,585		26,792	3.80	%		1,335,837		26,588	4.01	%

Federal funds sold		49,171		247	1.01	%		12,840		45	0.71	%

Taxable securities		149,489		1,968	2.67	%		146,740		2,083	2.88	%
Tax-exempt securities		43,416		453	2.12	%		36,420		424	2.36	%
Total securities		192,905		2,421	2.54	%		183,160		2,507	2.78	%

Interest-bearing deposits		129,704		228	0.35	%		207,495		94	0.09	%

Total interest-earning assets		1,795,365		29,688	3.34	%		1,739,332		29,234	3.39	%

Other assets		128,624						126,418

TOTAL ASSETS	$	1,923,989					$	1,865,750

LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings	$	244,528		46	0.04	%	$	220,161		72	0.07	%
Super Now deposits		379,496		434	0.23	%		287,444		475	0.33	%
Money market deposits		301,744		396	0.26	%		307,885		523	0.34	%
Time deposits		177,487		622	0.71	%		255,408		2,103	1.66	%
Total interest-bearing deposits		1,103,255		1,498	0.27	%		1,070,898		3,173	0.60	%

Short-term borrowings		5,416		3	0.11	%		6,368		4	0.13	%
Long-term borrowings		114,077		1,258	2.23	%		141,279		1,659	2.37	%
Total borrowings		119,493		1,261	2.13	%		147,647		1,663	2.27	%

Total interest-bearing liabilities		1,222,748		2,759	0.46	%		1,218,545		4,836	0.80	%

Demand deposits		512,441						464,237
Other liabilities		22,184						21,227
Shareholders' equity		166,616						161,741

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,923,989					$	1,865,750
Interest rate spread					2.88	%					2.59	%
Net interest income/margin			$	26,929	3.03	%			$	24,398	2.83	%

	Six Months Ended June 30,
		2022		2021
Total interest income	$	29,459	$	29,001
Total interest expense		2,759		4,836
Net interest income		26,700		24,165
Tax equivalent adjustment		229		233
Net interest income (fully taxable equivalent)	$	26,929	$	24,398

(Dollars in Thousands, Except Per Share Data, Unaudited)	Quarter Ended
	6/30/2022			3/31/2022			12/31/2021			9/30/2021			6/30/2021
Operating Data
Net income	$	4,231		$	3,432		$	4,879		$	4,125		$	3,588
Net interest income		13,847			12,853			12,921			12,632			12,095
Provision for loan losses		330			150			(300	)		75			350
Net security (losses) gains		(54	)		(61	)		360			40			140
Non-interest income, excluding net security gains		2,191			2,473			2,835			2,911			2,769
Non-interest expense		10,420			11,007			10,259			10,447			10,248

Performance Statistics
Net interest margin		3.12	%		2.93	%		2.90	%		2.85	%		2.78	%
Annualized return on average assets		0.88	%		0.72	%		1.02	%		0.86	%		0.76	%
Annualized return on average equity		10.15	%		8.17	%		11.59	%		9.85	%		8.70	%
Annualized net loan (recoveries) charge-offs to average loans		(0.01	)%		0.09	%		0.02	%		(0.01	)%		0.03	%
Net (recoveries) charge-offs		(40	)		303			81			(44	)		114
Efficiency ratio		64.72	%		71.53	%		64.83	%		66.93	%		68.61	%

Per Share Data
Basic earnings per share	$	0.60		$	0.49		$	0.69		$	0.58		$	0.51
Diluted earnings per share		0.60			0.49			0.69			0.58			0.51
Dividend declared per share		0.32			0.32			0.32			0.32			0.32
Book value		23.56			23.81			24.37			23.84			23.63
Common stock price:
High		24.35			24.67			24.65			24.42			26.51
Low		22.34			23.64			23.50			22.78			23.03
Close		23.09			24.43			23.65			23.92			23.82
Weighted average common shares:
Basic		7,059			7,073			7,068			7,064			7,060
Fully Diluted		7,059			7,073			7,068			7,064			7,060
End-of-period common shares:
Issued		7,559			7,555			7,550			7,546			7,542
Treasury		(510	)		(480	)		(480	)		(480	)		(480	)

(Dollars in Thousands, Except Per Share Data, Unaudited)	Quarter Ended
	6/30/2022		3/31/2022		12/31/2021		9/30/2021		6/30/2021
Financial Condition Data:
General
Total assets	$	1,891,806	$	1,916,809	$	1,940,809	$	1,910,791	$	1,894,870
Loans, net		1,474,739		1,391,943		1,377,971		1,332,668		1,323,509
Goodwill		17,104		17,104		17,104		17,104		17,104
Intangibles		396		437		480		524		568
Total deposits		1,589,579		1,612,395		1,621,315		1,593,019		1,563,696
Noninterest-bearing		524,288		514,130		494,360		481,875		477,344
Savings		249,057		245,661		236,312		231,189		226,573
NOW		353,102		379,838		366,399		340,441		296,450
Money Market		309,453		299,166		318,877		305,156		301,405
Time Deposits		153,679		173,600		205,367		234,358		261,924
Total interest-bearing deposits		1,065,291		1,098,265		1,126,955		1,111,144		1,086,352

Core deposits*		1,435,900		1,438,795		1,415,948		1,358,661		1,301,772
Shareholders' equity		166,054		168,427		172,274		168,478		166,830

Asset Quality
Non-performing loans	$	5,100	$	5,281	$	6,250	$	7,763	$	7,931
Non-performing loans to total assets		0.27%		0.28%		0.32%		0.41%		0.42%
Allowance for loan losses		14,393		14,023		14,176		14,557		14,438
Allowance for loan losses to total loans		0.97%		1.00%		1.02%		1.08%		1.08%
Allowance for loan losses to non-performing loans		282.22%		265.54%		226.82%		187.52%		182.05%
Non-performing loans to total loans		0.34%		0.38%		0.45%		0.58%		0.59%

Capitalization
Shareholders' equity to total assets		8.78%		8.79%		8.88%		8.82%		8.80%

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Thousands, Except Per Share Data)		2022			2021			2022			2021
GAAP net income	$	4,231		$	3,588		$	7,663		$	7,029
Less: net securities (losses) gains, net of tax		(43	)		111			(91	)		205
Non-GAAP core earnings	$	4,274		$	3,477		$	7,754		$	6,824

	Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Return on average assets (ROA)		0.88	%		0.76	%		0.80	%		0.75	%
Less: net securities (losses) gains, net of tax		(0.01	)%		0.02	%		(0.01	)%		0.02	%
Non-GAAP core ROA		0.89	%		0.74	%		0.81	%		0.73	%

	Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Return on average equity (ROE)		10.15	%		8.70	%		9.20	%		8.69	%
Less: net securities (losses) gains, net of tax		(0.10	)%		0.27	%		(0.11	)%		0.25	%
Non-GAAP core ROE		10.25	%		8.43	%		9.31	%		8.44	%

	Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Basic earnings per share (EPS)	$	0.60		$	0.51		$	1.08		$	1.00
Less: net securities (losses) gains, net of tax		(0.01	)		0.02			(0.02	)		0.03
Non-GAAP basic core EPS	$	0.61		$	0.49		$	1.10		$	0.97

	Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Diluted EPS	$	0.60		$	0.51		$	1.08		$	1.00
Less: net securities (losses) gains, net of tax		(0.01	)		0.02			(0.02	)		0.03
Non-GAAP diluted core EPS	$	0.61		$	0.49		$	1.10		$	0.97

Penns Woods Bancorp, Inc. Reports Second Quarter 2022 Earnings