Penns Woods Bancorp (PWOD) investor relations material

Executive summary

• Net income for Q1 2025 was $7.4M, up from $3.8M in Q1 2024, driven by higher net interest income and a negative provision for credit losses due to a $1.3M commercial loan recovery.

• Basic and diluted EPS were $0.97 and $0.95, respectively, compared to $0.51 for both in Q1 2024.

• Core earnings (non-GAAP) were $8.1M, with basic and diluted core EPS of $1.06 and $1.04, respectively.

• Annualized ROA was 1.31% and ROE was 14.76%, both up significantly year-over-year.

• After-tax merger-related expenses of $948K were recognized in Q1 2025 due to the pending acquisition by Northwest Bancshares, Inc.

Financial highlights

• Net interest income increased by $2.4M year-over-year to $16.1M, with net interest margin expanding to 3.13% from 2.69%.

• Interest and dividend income rose 8.2% to $28.4M, mainly from higher loan balances and yields.

• Total assets reached $2.25B, up 1.9% year-over-year; net loans grew 2.4% to $1.89B.

• Deposits increased $105.4M to $1.72B, with time and brokered deposits both rising.

• Allowance for credit losses was 0.54% of total loans, down from 0.62% a year ago.

Outlook and guidance

• The pending acquisition by Northwest Bancshares, Inc. is expected to close in Q3 2025.

• Management expects continued loan portfolio growth, supported by strong capital ratios and liquidity.

• The company remains asset sensitive and well positioned for potential interest rate changes.

• Management notes forward-looking risks related to the pending merger, integration challenges, and market conditions.