Exhibit 99.1
PO Box 967 | 300 Market Street | Williamsport, PA 17703-0967 | 570-322-1111 | wwww.jssb.com | NASDAQ SYMBOL: PWOD |
Penns Woods Bancorp, Inc. Announces 2nd Quarter 2004 Earnings
July 12, 2004, Jersey Shore, PA - Mr. Ronald A. Walko, President and Chief Executive Officer and Mr. Theodore H. Reich, Chairman Emeritus, announced second quarter 2004 financial results for Penns Woods Bancorp, Inc. (PWOD), parent company of Jersey Shore State Bank.
Consolidated net earnings for the six months ended June 30, 2004 were $5,477,000 or $1.65 per basic and dilutive share. Operating earnings, excluding tax adjusted net security gains of $744,000, were $4,733,000 for the first half of 2004 representing a 10.0% increase over operating earnings of $4,303,000 for the same period in 2003 excluding tax adjusted net security gains of $1,221,000.
Return on average assets (ROA) and return on average equity (ROE) for the six months ended June 30, 2004 were 2.07% and 15.44%, respectively compared to ROA of 2.29% and ROE of 16.63% for the first half of 2003.
Total assets grew by $28,019,000 over the past twelve months to $543,228,000 with loans advancing by $45,828,000 to $300,718,000. During this same time period, total deposits grew 8.28% or $28,186,000 to $368,750,000 with most of this growth occurring in municipal deposits. Centre County has had a well defined impact on our growth with construction to start on our State College North Atherton Street office commencing in the second half of this year.
Penns Woods Bancorp, Inc. recently paid a cash dividend of $.35 per share to shareholders of record on June 11, 2004 bringing dividends paid for the first half of 2004 to $.70. This represents a 27% increase in our payout compared to the dividend paid in the first two quarters of 2003. Shareholders’ equity per share is $20.56. The high for PWOD stock was $46.91 and the low was $42.47 during the second quarter of 2004.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates twelve branch offices providing services in Lycoming, Clinton and Centre Counties. Investment and insurance products are also offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.
CONSOLIDATED
BALANCE SHEET
(Unaudited)
|
| JUNE 30, |
| ||||
|
| 2004 |
| 2003 |
| ||
|
| (IN THOUSANDS) |
| ||||
|
|
|
|
|
| ||
ASSETS: |
|
|
|
|
| ||
Cash and due from banks |
| $ | 11,261 |
| $ | 14,109 |
|
Investment securities available for sale |
| 200,084 |
| 218,731 |
| ||
Investment securities held to maturity |
| 658 |
| 966 |
| ||
Loans held for sale |
| 5,158 |
| 2,622 |
| ||
Loans, net of unearned discount of $1,062 and $832 |
| 300,718 |
| 254,890 |
| ||
Allowance for loan and lease losses |
| (3,157 | ) | (3,041 | ) | ||
LOANS, NET |
| 297,561 |
| 251,849 |
| ||
Bank premises and equipment, net |
| 4,693 |
| 4,652 |
| ||
Accrued interest receivable |
| 2,207 |
| 2,545 |
| ||
Bank-owned life insurance |
| 9,088 |
| 8,711 |
| ||
Goodwill |
| 3,032 |
| 3,032 |
| ||
Other assets |
| 9,486 |
| 7,992 |
| ||
TOTAL ASSETS |
| $ | 543,228 |
| $ | 515,209 |
|
LIABILITIES: |
|
|
|
|
| ||
Interest-bearing deposits |
| $ | 302,480 |
| $ | 282,097 |
|
Noninterest-bearing deposits |
| 66,270 |
| 58,467 |
| ||
TOTAL DEPOSITS |
| 368,750 |
| 340,564 |
| ||
Short-term borrowings |
| 26,484 |
| 29,306 |
| ||
Other borrowings |
| 75,878 |
| 70,878 |
| ||
Accrued interest payable |
| 859 |
| 957 |
| ||
Other liabilities |
| 3,020 |
| 4,489 |
| ||
TOTAL LIABILITIES |
| 474,991 |
| 446,194 |
| ||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
| ||
Common stock par value $10.00, 10,000,000 shares authorized; 3,327,457 and 3,138,132 shares issued |
| 33,274 |
| 31,381 |
| ||
Additional paid-in capital |
| 17,581 |
| 18,322 |
| ||
Retained earnings |
| 16,175 |
| 15,455 |
| ||
Accumulated other comprehensive gain |
| 1,546 |
| 7,354 |
| ||
Less: Treasury stock at cost, 8,000 and 107,703 shares |
| (339 | ) | (3,497 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY |
| 68,237 |
| 69,015 |
| ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 543,228 |
| $ | 515,209 |
|
THIS INTERIM STATEMENT IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT
2
CONSOLIDATED
STATEMENT OF INCOME
(Unaudited)
|
| For the Six Months Ended |
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|
| 2004 |
| 2003 |
| ||
|
| (IN THOUSANDS) |
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|
|
|
|
|
| ||
INTEREST INCOME: |
|
|
|
|
| ||
Interest and fees on loans |
| $ | 10,028 |
| $ | 9,902 |
|
Interest and dividends on investments: |
|
|
|
|
| ||
Taxable |
| 4,066 |
| 2,769 |
| ||
Tax-exempt |
| 711 |
| 1,593 |
| ||
Other dividend and interest income |
| 54 |
| 79 |
| ||
TOTAL INTEREST AND DIVIDEND INCOME |
| 14,859 |
| 14,343 |
| ||
INTEREST EXPENSE: |
|
|
|
|
| ||
Interest on deposits |
| 2,317 |
| 3,122 |
| ||
Interest on short-term borrowings |
| 236 |
| 172 |
| ||
Interest on other borrowings |
| 1,713 |
| 1,487 |
| ||
TOTAL INTEREST EXPENSE |
| 4,266 |
| 4,781 |
| ||
NET INTEREST INCOME |
| 10,593 |
| 9,562 |
| ||
PROVISION FOR LOAN LOSSES |
| 150 |
| 135 |
| ||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
| 10,443 |
| 9,427 |
| ||
OTHER INCOME: |
|
|
|
|
| ||
Service charges |
| 998 |
| 937 |
| ||
Securities gains, net |
| 1,128 |
| 1,851 |
| ||
Earnings on bank-owned life insurance |
| 180 |
| 207 |
| ||
Insurance commissions |
| 1,159 |
| 750 |
| ||
Other operating income |
| 622 |
| 483 |
| ||
TOTAL OTHER INCOME, NET |
| 4,087 |
| 4,228 |
| ||
OTHER EXPENSES: |
|
|
|
|
| ||
Salaries and employee benefits |
| 3,865 |
| 3,320 |
| ||
Occupancy expense, net |
| 473 |
| 465 |
| ||
Furniture and equipment expense |
| 495 |
| 548 |
| ||
Pennsylvania shares tax expense |
| 246 |
| 228 |
| ||
Other operating expenses |
| 1,847 |
| 1,764 |
| ||
TOTAL OTHER EXPENSES |
| 6,926 |
| 6,325 |
| ||
INCOME BEFORE INCOME TAX PROVISION |
| 7,604 |
| 7,330 |
| ||
APPLICABLE INCOME TAX PROVISION |
| 2,127 |
| 1,806 |
| ||
NET INCOME |
| $ | 5,477 |
| $ | 5,524 |
|
EARNINGS PER SHARE - BASIC |
| $ | 1.65 |
| $ | 1.66 |
|
EARNINGS PER SHARE - DILUTED |
| $ | 1.65 |
| $ | 1.66 |
|
Basic weighted average shares outstanding |
| 3,320,649 |
| 3,333,309 |
| ||
THIS INTERIM STATEMENT IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT
Previous press releases and additional information can be obtained from the company’s website at www.jssb.com.
THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT
Contact: Ronald A. Walko
(570) 322-1111
(888) 412-5772 (Toll-Free in Pennsylvania)
email-jssb@jssb.com
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