Exhibit 99.1
Press Release – For Immediate Release
April 18, 2005
Contact:
Penns Woods Bancorp, Inc.
Mr. Ronald A. Walko
President and Chief Executive Officer
115 South Main Street
Jersey Shore, PA 17740
570-322-1111
Penns Woods Bancorp, Inc. Announces 2005 First Quarter Earnings
Jersey Shore, PA – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three months ended March 31, 2005 of $2,715,000 compared to $2,673,000 for the same period of 2004. Basic and dilutive earnings per share for the three months ended March 31, 2005 were $0.82 as compared to $0.80 for the three months ended March 31, 2004. Return on average assets and return on average equity was 2.01% and 14.56% for the three months ended March 31, 2005 as compared to 2.04% and 14.99% for the corresponding period of 2004.
Net income from core operations for the three months ended March 31, 2005, excluding security gains, remained stable at $2,312,000.
Total assets increased $17,826,000 or 3.39% to $543,993,000 from $526,167,000 at March 31, 2004 as management continues to focus on growing the balance sheet through the creation and maintenance of solid customer relationships throughout the marketplace. The result of these relationships has been a shift in earning assets as net loans increased $44,292,000 or 16.08%, while investment securities decreased $35,520,000 or 16.61% from March 31, 2004 to March 31, 2005. In addition, deposits have increased $12,064,000 or 3.53% from March 31, 2004 with noninterest-bearing deposits increasing $8,987,000 or 14.10%.
“Over the past year we have been able to grow net loans and deposits by focusing on the needs of our customers. We will be opening a new branch in State College in mid May to provide our current and future customers greater access to our products,” stated Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.
Shareholders’ equity increased $604,000 to $71,911,000 at March 31, 2005 equating to a book value per share of $21.65 as compared to $21.48 at March 31, 2004. During the three months ended March 31, 2005 a dividend of
$0.45 per share was paid to shareholders. The dividend represented a 28.6% increase over the dividend of $0.35 paid during the comparable period of 2004 and an increase of 9.8% over the fourth quarter 2004 regular dividend. “The increase in the quarterly dividend was the result of continued profitability and the decision by the Board of Directors to discontinue special dividends and incorporate the value of the special dividends into the regular quarterly declared dividends,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. “PWOD” stock was $50.00 and $46.30 during the three months ended March 31, 2005.
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)
(In Thousands, Except Share Data)
|
| March 31, |
| ||||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
ASSETS: |
|
|
|
|
| ||
Cash and noninterest-bearing balances |
| $ | 17,314 |
| $ | 12,091 |
|
Interest-bearing deposits |
| 30 |
| 21 |
| ||
Total cash and cash equivalents |
| 17,344 |
| 12,112 |
| ||
|
|
|
|
|
| ||
Investment securities, available for sale, at fair value |
| 178,071 |
| 213,201 |
| ||
Investment securities held to maturity (fair value of $307 and $713) |
| 309 |
| 699 |
| ||
Loans held for sale |
| 2,575 |
| 3,694 |
| ||
|
|
|
|
|
| ||
Loans, net of unearned discount of $1,060 and $971 |
| 323,140 |
| 278,548 |
| ||
Allowance for loan and lease losses |
| (3,399 | ) | (3,099 | ) | ||
Loans, net |
| 319,741 |
| 275,449 |
| ||
|
|
|
|
|
| ||
Premises and equipment, net |
| 5,588 |
| 4,575 |
| ||
Accrued interest receivable |
| 2,208 |
| 2,109 |
| ||
Bank-owned life insurance |
| 11,070 |
| 8,998 |
| ||
Goodwill |
| 3,032 |
| 3,032 |
| ||
Other assets |
| 4,055 |
| 2,298 |
| ||
TOTAL ASSETS |
| $ | 543,993 |
| $ | 526,167 |
|
|
|
|
|
|
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LIABILITIES: |
|
|
|
|
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Interest-bearing deposits |
| $ | 281,593 |
| $ | 278,516 |
|
Noninterest-bearing deposits |
| 72,708 |
| 63,721 |
| ||
Total deposits |
| 354,301 |
| 342,237 |
| ||
|
|
|
|
|
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Short-term borrowings |
| 37,262 |
| 30,594 |
| ||
Long-term borrowings, Federal Home Loan Bank |
| 74,478 |
| 75,878 |
| ||
Accrued interest payable |
| 862 |
| 829 |
| ||
Other liabilities |
| 5,179 |
| 5,322 |
| ||
TOTAL LIABILITIES |
| 472,082 |
| 454,860 |
| ||
|
|
|
|
|
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SHAREHOLDERS’ EQUITY: |
|
|
|
|
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Common stock par value $10.00, 10,000,000 shares authorized; 3,332,179 and 3,327,420 shares issued |
| 33,322 |
| 33,274 |
| ||
Additional paid-in capital |
| 17,707 |
| 17,581 |
| ||
Retained earnings |
| 19,481 |
| 14,532 |
| ||
Accumulated other comprehensive gain |
| 1,847 |
| 6,259 |
| ||
Less: Treasury stock at cost, (10,310 and 8,000) shares |
| (446 | ) | (339 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY |
| 71,911 |
| 71,307 |
| ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 543,993 |
| $ | 526,167 |
|
THIS INTERIM STATEMENT IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In Thousands, Except Per Share Data)
|
| Three Months Ended |
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|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
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INTEREST AND DIVIDEND INCOME: |
|
|
|
|
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Loans including fees |
| $ | 5,500 |
| $ | 4,891 |
|
Investment Securities: |
|
|
|
|
| ||
Taxable |
| 1,264 |
| 1,803 |
| ||
Tax-exempt |
| 589 |
| 391 |
| ||
Dividend |
| 298 |
| 242 |
| ||
TOTAL INTEREST AND DIVIDEND INCOME |
| 7,651 |
| 7,327 |
| ||
|
|
|
|
|
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INTEREST EXPENSE: |
|
|
|
|
| ||
Deposits |
| 1,194 |
| 1,135 |
| ||
Short-term borrowings |
| 202 |
| 137 |
| ||
Long-term borrowings |
| 853 |
| 852 |
| ||
TOTAL INTEREST EXPENSE |
| 2,249 |
| 2,124 |
| ||
|
|
|
|
|
| ||
NET INTEREST INCOME |
| 5,402 |
| 5,203 |
| ||
|
|
|
|
|
| ||
PROVISION FOR LOAN LOSSES |
| 180 |
| 75 |
| ||
|
|
|
|
|
| ||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
| 5,222 |
| 5,128 |
| ||
|
|
|
|
|
| ||
NON-INTEREST INCOME: |
|
|
|
|
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Service charges |
| 455 |
| 476 |
| ||
Securities gains, net |
| 611 |
| 545 |
| ||
Bank-owned life insurance |
| 94 |
| 90 |
| ||
Insurance commissions |
| 643 |
| 614 |
| ||
Other operating income |
| 314 |
| 312 |
| ||
TOTAL NON-INTEREST INCOME |
| 2,117 |
| 2,037 |
| ||
|
|
|
|
|
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NON-INTEREST EXPENSES: |
|
|
|
|
| ||
Salaries and employee benefits |
| 2,020 |
| 1,979 |
| ||
Occupancy expense, net |
| 291 |
| 243 |
| ||
Furniture and equipment expense |
| 221 |
| 265 |
| ||
Advertising expense |
| 94 |
| 94 |
| ||
Pennsylvania shares tax expense |
| 139 |
| 116 |
| ||
Other operating expenses |
| 856 |
| 776 |
| ||
TOTAL NON-INTEREST EXPENSES |
| 3,621 |
| 3,473 |
| ||
|
|
|
|
|
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INCOME BEFORE INCOME TAX PROVISION |
| 3,718 |
| 3,692 |
| ||
INCOME TAX PROVISION |
| 1,003 |
| 1,019 |
| ||
NET INCOME |
| $ | 2,715 |
| $ | 2,673 |
|
|
|
|
|
|
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EARNINGS PER SHARE - BASIC |
| $ | 0.82 |
| $ | 0.80 |
|
|
|
|
|
|
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EARNINGS PER SHARE - DILUTED |
| $ | 0.82 |
| $ | 0.80 |
|
|
|
|
|
|
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WEIGHTED AVERAGE SHARES OUTSTANDING-BASIC |
| 3,311,272 |
| 3,321,853 |
| ||
|
|
|
|
|
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WEIGHTED AVERAGE SHARES OUTSTANDING-DILUTED |
| 3,313,422 |
| 3,325,395 |
|
THIS INTERIM STATEMENT IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT
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 PWOD, 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. Because certain of these items and their impact on PWOD’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 PWOD’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 other than statements of historical fact. PWOD 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 PWOD 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 PWOD’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; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.
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 |