Exhibit 99.1
Penns Woods Bancorp, Inc. Announces 3rd Quarter Earnings
October 9, 2003, Jersey Shore, PA - Mr. Ronald A. Walko,
President and Chief Executive Officer and Mr. Theodore H. Reich,
Chairman Emeritus, announced third quarter 2003 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, 2003 were $8,535,000 or $2.82 per basic and $2.81
per dilutive share. This represents a 31.06% increase over the
same period in 2002 when net earnings were $6,513,000 or
$2.15 per basic share and $2.14 per dilutive share. Operating
earnings, excluding tax adjusted net security gains of
$2,044,000, were $6,491,000 for the first nine months of 2003.
This represents a 2.43% increase over operating earnings of
$6,337,000 for the same period in 2002 excluding tax adjusted
net security gains of $60,000 and a non-reoccurring income item
of $116,000.
Return on average assets (ROA) and return on average equity
(ROE) for the nine months ended September 30, 2003 were 2.32%
and 17.02%, respectively compared to ROA of 2.00% and ROE of
14.92% for the first three quarters of 2002. The securities
market brought an opportunity to take security gains and
increase net income. Return on average assets and return on
average equity based on operating earnings as defined above were
1.76% and 12.95%, respectively, for the nine months period ended
September 30, 2003, compared to 1.95% and 14.52%, respectively
for the first three quarters of 2002.
Penns Woods Bancorp, Inc. recently paid its third dividend
of $.30 per share this year, bringing the year to date total to
$.90 per share. This represents an 11% increase in payout from
a year ago. On September 23, 2003, the Board of Directors
declared a 10 percent stock dividend will be payable October 30,
2003 to shareholders of record October 15. Shareholders' equity
per share also increased $1.98 per share from one year ago to
$22.26. The high for PWOD stock was $46.55 and the low was
$42.50 during the third quarter of 2003.
Penns Woods Bancorp, Inc. is the parent company of Jersey
Shore State Bank that 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
STATEMENT OF INCOME
(unaudited)
<table>
<caption>
For the Nine Months Ended
September 30,
2003 2002
(IN THOUSANDS)
<s> <c> <c>
INTEREST INCOME:
Interest and fees on loans................ $14,919 $15,685
Interest and dividends on investments:
Taxable................................ 4,474 3,537
Tax-exempt............................. 2,134 2,377
Other dividend and interest income........ 97 75
--------- ---------
TOTAL INTEREST AND DIVIDEND INCOME... 21,624 21,674
--------- ---------
INTEREST EXPENSE:
Interest on deposits...................... 4,486 5,969
Interest on short-term borrowings......... 278 395
Interest on other borrowings.............. 2,344 1,810
--------- ---------
TOTAL INTEREST EXPENSE............... 7,108 8,174
--------- ---------
NET INTEREST INCOME....................... 14,516 13,500
PROVISION FOR LOAN LOSSES................. 225 275
--------- ---------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES.......................... 14,291 13,225
--------- ---------
OTHER INCOME:
Service charges........................... 1,415 1,301
Securities gains.......................... 3,098 90
Earnings on bank-owned life insurance..... 304 301
Insurance Commissions..................... 1,175 1,485
Other operating income.................... 808 862
--------- ---------
TOTAL OTHER INCOME, NET.............. 6,800 4,039
--------- ---------
OTHER EXPENSES:
Salaries and employee benefits............ 5,058 5,065
Occupancy expense, net.................... 687 631
Furniture and equipment expense........... 808 639
Other operating expenses.................. 3,062 2,743
--------- ---------
TOTAL OTHER EXPENSES................. 9,615 9,078
--------- ---------
INCOME BEFORE INCOME TAX PROVISION........ 11,476 8,186
APPLICABLE INCOME TAX PROVISION........... 2,941 1,673
--------- ---------
NET INCOME................................ $8,535 $6,513
========= =========
EARNINGS PER SHARE-BASIC.................. $2.82 $2.15
========= =========
EARNINGS PER SHARE-DILUTED................ $2.81 $2.14
========= =========
Basic weighted average shares
outstanding........................ 3,029,743 3,034,075
</table>
CONSOLIDATED
BALANCE SHEET
(Unaudited)
<table>
<caption>
September 30,
2003 2002
(IN THOUSANDS)
<s> <c> <c>
ASSETS:
Cash and due from banks.......................... $ 10,567 $ 18,807
Investment securities available for sale......... 212,513 167,426
Investment securities held to maturity........... 941 1,218
Loans held for sale.............................. 4,728 2,532
Loans, net of unearned discount of $879 and $767. 265,506 253,165
Allowance for loan and lease losses.............. (3,080) (3,028)
-------- --------
LOANS, NET.................................. 262,426 250,137
-------- --------
Bank premises and equipment, net................. 4,705 4,788
Accrued interest receivable...................... 2,286 2,224
Bank-owned life insurance........................ 8,808 8,437
Goodwill......................................... 3,032 3,032
Other assets..................................... 8,467 5,641
-------- --------
TOTAL ASSETS..................................... $518,473 $464,242
========= ========
LIABILITIES:
Interest-bearing deposits........................ $276,654 $275,555
Noninterest-bearing deposits..................... 56,933 58,483
--------- --------
TOTAL DEPOSITS.............................. 333,587 334,038
Short-term borrowings............................ 42,955 17,855
Other borrowings................................. 70,878 46,778
Accrued interest payable......................... 887 1,098
Other liabilities................................ 2,766 3,045
-------- --------
TOTAL LIABILITIES................................ 451,073 402,814
-------- --------
SHAREHOLDERS' EQUITY:
Common stock par value $10.00, 10,000,000
shares authorized; 3,138,382 and 3,131,752
shares issued.................................. 31,384 31,318
Additional paid-in capital....................... 18,327 18,232
Retained earnings................................ 17,558 11,043
Accumulated other comprehensive gain............. 3,739 4,203
Less: Treasury stock at cost, 110,290
and 102,854 shares............................. (3,608) (3,368)
-------- --------
TOTAL SHAREHOLDERS' EQUITY....................... 67,400 61,428
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY....... $518,473 $464,242
======== ========
</table>
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