Penns Woods Bancorp, Inc. (PWOD) has reported 9.07 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $3.06 million, or $0.65 a share in the quarter, compared with $3.36 million, or $0.71 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.89 million, or $0.61 a share compared with $3.04 million or $0.64 a share, a year ago.
Revenue during the quarter went up marginally by 1.71 percent to $13.07 million from $12.85 million in the previous year period. Non-interest income for the quarter fell 1.75 percent over the last year period to $3.08 million.
Penns Woods Bancorp, Inc. has made provision of $0.26 million for loan losses during the quarter, down 50.38 percent from $0.52 million in the same period last year.
Net interest margin contracted 18 basis points to 3.37 percent in the quarter from 3.55 percent in the last year period. Efficiency ratio for the quarter deteriorated to 66.20 percent from 65.70 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"During 2016 we have maintained our focus on building balance sheet strength by adding quality earning assets and continuing to shift earning assets from the investment portfolio to the loan portfolio. The quality assets being added are centered on home equity products that are variable rate and provide protection to a rising rate environment. The shift from investments to loans is being undertaken to reduce interest rate and market risk and to reduce the level of regulatory risk weighted assets which allows for better capital utilization," said Richard A. Grafmyre, CFP®, president and chief executive officer.
Liabilities outpace assets growth
Total assets stood at $1,347.41 million as on Sep. 30, 2016, up 3.70 percent compared with $1,299.29 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,207.48 million as on Sep. 30, 2016, up 3.76 percent from $1,163.72 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $1,056.76 million as on Sep. 30, 2016, up 6.73 percent compared with $990.16 million on Sep. 30, 2015. Deposits stood at $1,088.30 million as on Sep. 30, 2016, up 8.31 percent compared with $1,004.80 million on Sep. 30, 2015.
Investments stood at $141.72 million as on Sep. 30, 2016, down 30.44 percent or $62 million from year-ago. Shareholders equity stood at $139.94 million as on Sep. 30, 2016, up 3.21 percent or $4.36 million from year-ago.
Return on average assets moved down 13 basis points to 0.91 percent in the quarter from 1.04 percent in the last year period. At the same time, return on average equity decreased 120 basis points to 8.69 percent in the quarter from 9.89 percent in the last year period.
Nonperforming assets to total loans was 0.86 percent in the quarter, up from 0.66 percent in the last year period.
Book value per share was $29.56 for the quarter, up 3.57 percent or $1.02 compared to $28.54 for the same period last year.
