WILLIAMSPORT, Pa., April 15, 2013 (GLOBE NEWSWIRE) -- Penns Woods Bancorp, Inc. (Nasdaq:PWOD) continued its strong earnings and growth during the recently completed first quarter of 2013. Earnings of $3,684,000 were achieved for the three month period ending March 31, 2013 resulting in basic and dilutive earnings per share of $0.96. The driving force behind the strong net income was growth in loans and core deposits as both categories increased in excess of 10% over the past twelve months.
- Net income from core operations ("operating earnings"), which is a non-GAAP measure of net income excluding net securities gains and bank owned life insurance gains on death benefits, decreased slightly to $3,033,000 for the three months ended March 31, 2013 compared to $3,191,000 for the same period of 2012.
- Operating earnings per share for the three months ended March 31, 2013 were $0.79 basic and dilutive compared to $0.83 basic and dilutive for the same period of 2012.
- Return on average assets was 1.72% for the three months ended March 31, 2013 compared to 1.91% for the corresponding period of 2012.
- Return on average equity was 15.48% for the three months ended March 31, 2013 compared to 17.39% for the corresponding period of 2012.
- The results for the three months ended March 31, 2013 were negatively impacted by $88,000 in expenses related to the announced acquisition of Luzerne National Bank Corporation.
"During the current prolonged period of low rates, we have taken the strategic path of growing our balance sheet by acquiring high quality earning assets funded by core deposit growth. The loan growth is being driven by home equity and mortgage products, while NOW and savings accounts drive the core deposit growth. As part of our strategic plan, we continue to invest in revenue streams for the future. These revenue streams include the successful 2012 opening of our Danville branch, approved branch locations in Lewisburg and Loyalsock, expansion of our residential secondary market footprint and commercial services department, and the announced acquisition of Luzerne National Bank Corporation. While the investment in these areas limits our ability to increase current earnings, these areas will further diversify our revenue streams and should positively impact net income in future periods, while reducing the reliance on net interest income as the driver of earnings," said Richard A. Grafmyre, CFP®, President and CEO.