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 3rd Quarter 2004 Earnings
October 7, 2004, Jersey Shore, PA - Mr. Ronald A. Walko, President and Chief Executive Officer and Mr. Theodore H. Reich, Chairman Emeritus, announced third quarter 2004 financial results for Penns Woods Bancorp, Inc. (PWOD), parent company of Jersey Shore State Bank.
Consolidated net earnings for the nine months ended September 30, 2004 were $8,304,000 or $2.50 per basic and dilutive share. Operating earnings, excluding tax adjusted net security gains of $1,013,000, were $7,291,000 for the first nine months of 2004 representing a 12.32% increase over operating earnings of $6,491,000 for the same period in 2003 excluding tax adjusted net security gains of $2,044,000.
Return on average assets (ROA) and return on average equity (ROE) for the nine months ended September 30, 2004 were 2.07% and 15.62%, respectively compared to ROA of 2.32% and ROE of 17.02% for the first nine months of 2003. ROA and ROE net of security gains, or operating earnings, as defined above were 1.82% and 13.72%, respectively, for the period ended September 30, 2004 compared to 1.76% and 12.95% respectively for the same period in 2003. Total Assets grew by $40,796,000 over the past twelve months to $559,269,000 with loans advancing by $51,225,000 to $316,731,000. During this same time period, total deposits grew 11.84% or $39,493,000 to $373,087,000 with much of this growth occurring in municipal accounts.
Centre County has had a vast impact on our growth in loans and deposits. Jersey Shore State Bank is one step closer to realizing its goal of having a major presence in State College, PA when ground was broken on its new regional banking center at 2050 North Atherton Street. The 4,500 square foot facility will house the bank’s regional commercial and residential mortgage lending functions, investment and insurance services, as well as a full service branch office.
Penns Woods Bancorp, Inc. recently paid a cash dividend of $.35 per share to shareholders of record on September 13, 2004 bringing dividends paid for the first three quarters of 2004 to $1.05. This represents a 28% increase in our payout compared to the dividends paid in the first three quarters of 2003. Shareholders’ equity per share is $21.81. The high for PWOD stock was $50.75 and the low was $44.16 during the third quarter of 2004.
Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates twelve branch offices providing financial services in Lycoming, Clinton and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.
CONSOLIDATED
BALANCE SHEET
(Unaudited)
|
| SEPTEMBER 30, |
| ||||
|
| 2004 |
| 2003 |
| ||
|
| (IN THOUSANDS) |
| ||||
ASSETS: |
|
|
|
|
| ||
Cash and due from banks |
| $ | 16,927 |
| $ | 10,567 |
|
Investment securities available for sale |
| 193,705 |
| 212,513 |
| ||
Investment securities held to maturity |
| 658 |
| 941 |
| ||
Loans held for sale |
| 6,675 |
| 4,728 |
| ||
Loans, net of unearned discount of $1,079 and $879 |
| 316,731 |
| 265,506 |
| ||
Allowance for loan and lease losses |
| (3,248 | ) | (3,080 | ) | ||
LOANS, NET |
| 313,483 |
| 262,426 |
| ||
Bank premises and equipment, net |
| 4,692 |
| 4,705 |
| ||
Accrued interest receivable |
| 2,168 |
| 2,286 |
| ||
Bank-owned life insurance |
| 9,178 |
| 8,808 |
| ||
Goodwill |
| 3,032 |
| 3,032 |
| ||
Other assets |
| 8,751 |
| 8,467 |
| ||
TOTAL ASSETS |
| $ | 559,269 |
| $ | 518,473 |
|
LIABILITIES: |
|
|
|
|
| ||
Interest-bearing deposits |
| $ | 303,041 |
| $ | 276,654 |
|
Noninterest-bearing deposits |
| 70,046 |
| 56,940 |
| ||
TOTAL DEPOSITS |
| 373,087 |
| 333,594 |
| ||
Short-term borrowings |
| 33,669 |
| 42,955 |
| ||
Other borrowings |
| 75,878 |
| 70,878 |
| ||
Accrued interest payable |
| 879 |
| 887 |
| ||
Other liabilities |
| 3,374 |
| 2,759 |
| ||
TOTAL LIABILITIES |
| 486,887 |
| 451,073 |
| ||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
| ||
Common stock par value $10.00, 10,000,000 shares authorized; |
| 33,274 |
| 31,384 |
| ||
Additional paid-in capital |
| 17,581 |
| 18,327 |
| ||
Retained earnings |
| 17,839 |
| 17,558 |
| ||
Accumulated other comprehensive gain |
| 4,027 |
| 3,739 |
| ||
Less: Treasury stock at cost, 8,000 and 110,290 shares |
| (339 | ) | (3,608 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY |
| 72,382 |
| 67,400 |
| ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 559,269 |
| $ | 518,473 |
|
THIS INTERIM STATEMENT IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT |
|
|
|
|
|
CONSOLIDATED
STATEMENT OF INCOME
(Unaudited)
|
| For the Nine Months Ended |
| ||||
|
| 2004 |
| 2003 |
| ||
|
| (IN THOUSANDS) |
| ||||
INTEREST INCOME: |
|
|
|
|
| ||
Interest and fees on loans |
| $ | 15,578 |
| $ | 14,919 |
|
Interest and dividends on investments: |
|
|
|
|
| ||
Taxable |
| 5,996 |
| 4,472 |
| ||
Tax-exempt |
| 1,133 |
| 2,134 |
| ||
Other dividend and interest income |
| 76 |
| 99 |
| ||
TOTAL INTEREST AND DIVIDEND INCOME |
| 22,783 |
| 21,624 |
| ||
INTEREST EXPENSE: |
|
|
|
|
| ||
Interest on deposits |
| 3,544 |
| 4,486 |
| ||
Interest on short-term borrowings |
| 367 |
| 278 |
| ||
Interest on other borrowings |
| 2,584 |
| 2,344 |
| ||
TOTAL INTEREST EXPENSE |
| 6,495 |
| 7,108 |
| ||
NET INTEREST INCOME |
| 16,288 |
| 14,516 |
| ||
PROVISION FOR LOAN LOSSES |
| 315 |
| 225 |
| ||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
| 15,973 |
| 14,291 |
| ||
OTHER INCOME: |
|
|
|
|
| ||
Service charges |
| 1,497 |
| 1,427 |
| ||
Securities gains, net |
| 1,535 |
| 3,098 |
| ||
Earnings on bank-owned life insurance |
| 270 |
| 304 |
| ||
Insurance commissions |
| 1,796 |
| 1,175 |
| ||
Other operating income |
| 944 |
| 796 |
| ||
TOTAL OTHER INCOME, NET |
| 6,042 |
| 6,800 |
| ||
OTHER EXPENSES: |
|
|
|
|
| ||
Salaries and employee benefits |
| 5,813 |
| 5,058 |
| ||
Occupancy expense, net |
| 704 |
| 684 |
| ||
Furniture and equipment expense |
| 721 |
| 811 |
| ||
Pennsylvania shares tax expense |
| 377 |
| 342 |
| ||
Other operating expenses |
| 2,820 |
| 2,720 |
| ||
TOTAL OTHER EXPENSES |
| 10,435 |
| 9,615 |
| ||
INCOME BEFORE INCOME TAX PROVISION |
| 11,580 |
| 11,476 |
| ||
APPLICABLE INCOME TAX PROVISION |
| 3,277 |
| 2,941 |
| ||
NET INCOME |
| $ | 8,303 |
| $ | 8,535 |
|
EARNINGS PER SHARE - BASIC |
| $ | 2.50 |
| $ | 2.56 |
|
EARNINGS PER SHARE - DILUTED |
| $ | 2.50 |
| $ | 2.55 |
|
Basic weighted average shares outstanding |
| 3,320,249 |
| 3,332,717 |
| ||
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 |