Penns Woods Bancorp Reports Significant Increase in Net Income and Assets for Q1 2025

Penns Woods Bancorp, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net income rising to $7.37 million, compared to $3.81 million in the same period of 2024. This translates to earnings per share of $0.97 and $0.95 on a diluted basis, up from $0.51 in the prior year. The increase in profitability was primarily driven by a $2.39 million rise in net interest income, attributed to an expanded net interest margin of 3.13%, up from 2.69% in the previous year. The company also recognized a negative provision for credit losses of $2.97 million, a notable shift from a provision of $138,000 in the prior year, largely due to a recovery on a commercial loan.

Total assets for Penns Woods Bancorp increased to $2.25 billion as of March 31, 2025, up from $2.23 billion at the end of 2024. The growth in assets was supported by a rise in loans, which reached $1.90 billion, an increase of $20.30 million from the previous quarter. The allowance for credit losses decreased to $9.99 million, reflecting improved credit quality metrics. The company’s total deposits also saw a modest increase, rising to $1.72 billion, up from $1.71 billion, with a notable growth in money market deposits.

Strategically, Penns Woods Bancorp is preparing for its acquisition by Northwest Bancshares, Inc., expected to close in the third quarter of 2025. This merger has led to the suspension of the Employee Stock Purchase Plan and the Director Compensation Plan for 2025. The company incurred $1.09 million in merger-related expenses during the quarter, which impacted its financial results. Additionally, the company has focused on enhancing its digital banking services, which has contributed to increased customer engagement and deposit growth.

Operationally, the company reported a total of 7,614,214 shares of common stock outstanding as of May 1, 2025. The increase in customer engagement is reflected in the growth of its loan portfolio, particularly in consumer automobile loans, which increased by 6.28%. The company continues to emphasize growth in its commercial and consumer loan portfolios while maintaining a strong capital position, with all regulatory capital ratios exceeding the required thresholds.

Looking ahead, Penns Woods Bancorp remains optimistic about its growth trajectory, supported by a solid loan portfolio and strategic initiatives aimed at enhancing operational efficiency. The company is committed to navigating the challenges posed by market conditions and regulatory changes while focusing on delivering value to its shareholders and customers.