- Net income for Penns Woods Bancorp (PWOD, Financial) nearly doubled year-over-year to $7.4 million in Q1 2025.
- Earnings per share significantly increased by 90%, with basic EPS at $0.97.
- Total deposits climbed by $105.4 million, reaching $1.7 billion.
Penns Woods Bancorp, Inc. (PWOD) has reported a robust financial performance for the first quarter of 2025, with net income surging to $7.4 million compared to $3.8 million in the same quarter of 2024. This result highlights a significant 94.7% year-over-year growth, underscoring the company's strong financial health.
Basic and diluted earnings per share saw a substantial increase, standing at $0.97 and $0.95 respectively, compared to $0.51 in the prior year. The company attributed its strong performance to a $2.4 million rise in net interest income and a unique $3.0 million negative provision for credit losses, which included a $1.3 million recovery from commercial loans. This remarkable recovery played a pivotal role in the earnings boost.
PWOD's net interest margin also showed notable improvement, expanding to 3.13% from 2.69% a year earlier. The company's strategic financial positioning was evident as total assets grew to $2.3 billion, with net loans increasing by $43.3 million to reach $1.9 billion.
On the liabilities front, total deposits rose by $105.4 million, culminating in a sum of $1.7 billion. However, non-performing loans increased to $10.0 million from $8.0 million year-over-year, driving the non-performing loans ratio up to 0.53% from 0.43%.
The financials for this quarter were also affected by $948,000 in after-tax merger expenses, tied to the announced acquisition by Northwest Bancshares. Despite these expenses, the company's capital strength improved, with shareholders' equity rising by $18.5 million to $212.0 million, thereby enhancing the equity-to-asset ratio to 9.41% from 8.76%.
