--- title: "Penns Woods Bancorp,Inc. Reports First Quarter 2025 Earnings | PWOD Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/237597765.md" description: "Penns Woods Bancorp, Inc. reported a net income of $7.4 million for Q1 2025, with earnings per share of $0.97 (basic) and $0.95 (diluted), up from $3.8 million in Q1 2024. The increase was driven by a $2.4 million rise in net interest income and a negative provision for credit losses of $3.0 million. Core earnings reached $8.1 million, with core earnings per share at $1.06 (basic). The net interest margin improved to 3.13% from 2.69% year-over-year, reflecting better market conditions and portfolio growth." datetime: "2025-04-25T14:55:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/237597765.md) - [en](https://longbridge.com/en/news/237597765.md) - [zh-HK](https://longbridge.com/zh-HK/news/237597765.md) --- # Penns Woods Bancorp,Inc. Reports First Quarter 2025 Earnings | PWOD Stock News 04/25/2025 - 10:55 AM WILLIAMSPORT, Pa., April 25, 2025 (GLOBE NEWSWIRE) -- Penns Woods Bancorp,Inc. (NASDAQ: PWOD) Penns Woods Bancorp,Inc. achieved net income of $7.4 million for the three months ended March 31, 2025, resulting in basic earnings per share of $0.97 and diluted earnings per share of $0.95. **Highlights** - Net income, as reported under generally accepted accounting principles (GAAP), for the three months ended March31, 2025 was $7.4 million, compared $3.8 million for the same period of 2024. Results for the three months ended March31, 2025 compared to 2024 were impacted by an increase in net interest income of $2.4 million, as the net interest margin expanded. The three month period ended March 31, 2025 has been impacted by after-tax merger related expenses of $948,000 resulting from the announced acquisition of the company by Northwest Bancshares, Inc. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the three month period ended March 31, 2024. - The allowance for credit losses was impacted for the three months ended March 31, 2025 by a negative provision for credit losses of $3.0 million, compared to a provision for credit losses of $138,000 for the 2024 period. The recognition of a negative provision for credit losses for the 2025 period was due primarily to a recovery on a commercial loan of $1.3 million. The recovery, coupled with a decline in the historical loss rates over the look back period, reduced the probability of default and loss given default applied to the loan portfolio when determining the level of the allowance for credit losses. - Basic and diluted earnings per share for the three months ended March 31, 2025 were $0.97 and $0.95, respectively. This compares to basic and diluted earnings per share of $0.51 for the three month period ended March 31, 2024. - Annualized return on average assets was 1.31% for the three months ended March 31, 2025, compared to 0.69% for the corresponding period of 2024. - Annualized return on average equity was 14.76% for the three months ended March 31, 2025, compared to 8.03% for the corresponding period of 2024. **Net Income** Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses and merger expenses, was $8.1 million for the three months ended March31, 2025 compared to $3.8 million for the same period of 2024. Core earnings per share (non-GAAP) for the three months ended March31, 2025 were basic $1.06 and diluted $1.04. Basic and diluted core earnings per share for the same period of 2024 were $0.51. Annualized core return on average assets and core return on average equity (non-GAAP) were 1.43% and 16.15%, respectively, for the three months ended March 31, 2025, compared to 0.69% and 8.09% for the corresponding period of 2024. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share to the comparable GAAP financial measures is included at the end of this press release. **Net Interest Margin** The net interest margin for the three months ended March 31, 2025 was 3.13% compared to 2.69% for the corresponding period of 2024. The increase in the net interest margin for the three month period was driven by an increase in the rate collected on interest-earning assets of 38 basis points ("bps"). The overall market conditions over the periods resulted in increases to the yield on the earnings asset portfolio and a decrease in the rate paid on interest-bearing deposits. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets, portfolio growth, and the recognition of $223,000 in interest from a recovery on a commercial loan. The average loan portfolio balance increased $41.8 million for the three month period ended March 31, 2025 compared to the same period of 2024 as the average yield on the portfolio increased 40 bps, resulting in an increase in taxable equivalent interest income of $2.2 million for the period. The three month period ended March 31, 2025 was impacted by an increase of 30 bps in the yield earned on the securities portfolio as legacy securities matured, which offset the impact of a decrease in average securities balance of $15.0 million. Short-term borrowings decreased leading to a decrease of $949,000 in expense for the three month period ended March 31, 2025 compared to the same period of 2024. The rate paid on interest-bearing deposits increased 4 bps, or $781,000, in expense for the three month period ended March 31, 2025 compared to the corresponding period of 2024 due to the rate environment, an increase in competition for deposits, increased utilization of brokered deposits, and a migration of deposit balances from core deposits to higher rate time deposits. The average balance of time deposits increased $99.9 million from the three month period ended March 31, 2024 to 2025 as the rate paid on the funds decreased 9 bps. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit balances, while lowering the reliance on higher cost short-term borrowings. **Assets** Total assets increased to $2.3 billion at March31, 2025, an increase of $42.1 million compared to March31, 2024. Net loans increased $43.3 million to $1.9 billion at March31, 2025 compared to March31, 2024, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $14.3 million from March31, 2024 to March31, 2025 as the portfolio cash flow is being utilized to fund loan growth. Short-term and long-term borrowings decreased $28.3 million and $47.2 million, respectively, from March 31, 2024 to March 31, 2025 as deposit growth allowed for a reduction in total borrowings. **Non-performing Loans** The ratio of non-performing loans to total loans ratio increased to 0.53% at March31, 2025 from 0.43% at March31, 2024, as non-performing loans increased to $10.0 million at March31, 2025 from $8.0 million at March31, 2024. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan recoveries of $957,000 for the three months ended March 31, 2025, impacted the allowance for credit losses, which was 0.54% of total loans at March31, 2025 compared to 0.62% at March 31, 2024. Exposure to non-owner occupied office space is minimal at $13.7 million at March 31, 2025 with none of these loans being delinquent. **Deposits** Deposits increased $105.4 million to $1.7 billion at March31, 2025 compared to March31, 2024. Noninterest-bearing deposits decreased $5.7 million to $465.8 million at March31, 2025 compared to March31, 2024. Core deposits increased $3.6 million with growth in money market accounts offsetting a decline in savings and NOW accounts. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $111.1 million from March 31, 2024 to March 31, 2025 due to growth in the time deposit portfolio of $50.6 million as customers sought a higher rate of interest. Brokered deposit balances increased $51.2 million to $177.0 million at March 31, 2025 as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued throughout 2024 and 2025. **Shareholders’ Equity** Shareholders’ equity increased $18.5 million to $212.0 million at March31, 2025 compared to March31, 2024. Accumulated other comprehensive loss of $3.5 million at March 31, 2025 decreased from a loss of $9.2 million at March 31, 2024 as a result of a decrease in net unrealized loss on available for sale securities to $2.8 million at March 31, 2025 from a net unrealized loss of $6.4 million at March 31, 2024, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.85 at March31, 2025 compared to $25.72 at March31, 2024, and an equity to asset ratio of 9.41% at March31, 2025 and 8.76% at March31, 2024.Tangible book value per share (a non-GAAP measure) increased to $25.67 at March 31, 2025 compared to $23.50 at March 31, 2024. Dividends declared for the three months ended March 31, 2025 and 2024 were $0.32 per share. Penns Woods Bancorp,Inc. is the parent company of Jersey Shore State Bank, which operates sixteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products. Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group,Inc. D/B/A The Comprehensive Financial Group. NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing. For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item1A. Risk Factors,” set forth in the Company’s Annual Report on Form10-K for the fiscal year ended December31, 2024. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com. Contact: Richard A. Grafmyre, Chief Executive Officer 110 Reynolds Street Williamsport, PA 17702 570-322-1111 e-mail: pwod@pwod.com **PENNS WOODS BANCORP,INC.** **CONSOLIDATED BALANCE SHEET** **(UNAUDITED)** **March 31,** **(InThousands,ExceptShareand Per Share Data)** **2025** **2024** **%Change** ASSETS: Noninterest-bearing cash $ 26,604 $ 23,488 13.27 % Interest-bearing balances in other financial institutions 10,841 9,055 19.72 % Total cash and cash equivalents 37,445 32,543 15.06 % Investment debt securities, available for sale, at fair value 175,721 187,245 (6.15 )% Investment equity securities, at fair value 1,128 1,112 1.44 % Restricted investment in bank stock 20,613 23,420 (11.99 )% Loans held for sale 2,583 3,360 (23.13 )% Loans 1,897,376 1,855,347 2.27 % Allowance for credit losses (10,236 ) (11,542 ) (11.32 )% Loans, net 1,887,140 1,843,805 2.35 % Premises and equipment, net 27,441 28,970 (5.28 )% Accrued interest receivable 10,871 11,344 (4.17 )% Bank-owned life insurance 45,982 32,853 39.96 % Investment in limited partnerships 6,466 7,515 (13.96 )% Goodwill 16,450 16,450 — % Intangibles 82 184 (55.43 )% Operating lease right of use asset 2,761 2,922 (5.51 )% Deferred tax asset 2,067 4,546 (54.53 )% Other assets 15,485 13,847 11.83 % TOTAL ASSETS $ 2,252,235 $ 2,210,116 1.91 % LIABILITIES: Interest-bearing deposits $ 1,258,188 $ 1,147,111 9.68 % Noninterest-bearing deposits 465,766 471,451 (1.21 )% Total deposits 1,723,954 1,618,562 6.51 % Short-term borrowings 82,910 111,208 (25.45 )% Long-term borrowings 214,542 261,770 (18.04 )% Accrued interest payable 3,908 4,174 (6.37 )% Operating lease liability 2,841 2,987 (4.89 )% Other liabilities 12,057 17,898 (32.63 )% TOTAL LIABILITIES 2,040,212 2,016,599 1.17 % SHAREHOLDERS’ EQUITY: Preferred stock, no par value, 3,000,000 shares authorized; no shares issued — — n/a Common stock, par value $5.55, 22,500,000 shares authorized; 8,124,439 and 8,035,597 shares issued; 7,614,214 and 7,525,372 shares outstanding 45,134 44,641 1.10 % Additional paid-in capital 62,931 62,215 1.15 % Retained earnings 120,261 108,642 10.69 % Accumulated other comprehensive loss: Net unrealized loss on available for sale securities (2,762 ) (6,425 ) 57.01 % Defined benefit plan (726 ) (2,741 ) 73.51 % Treasury stock at cost, 510,225 shares (12,815 ) (12,815 ) — % TOTAL SHAREHOLDERS' EQUITY 212,023 193,517 9.56 % TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,252,235 $ 2,210,116 1.91 % **PENNS WOODS BANCORP, INC.** **CONSOLIDATED STATEMENT OF INCOME** **(UNAUDITED)** **Three Months Ended March 31,** **(InThousands,Except Share andPerShareData)** **2025** **2024** **%Change** INTEREST AND DIVIDEND INCOME: Loans including fees $ 26,014 $ 23,860 9.03 % Investment securities: Taxable 1,723 1,594 8.09 % Tax-exempt 60 97 (38.14 )% Dividend and other interest income 581 679 (14.43 )% TOTAL INTEREST AND DIVIDEND INCOME 28,378 26,230 8.19 % INTEREST EXPENSE: Deposits 8,744 7,963 9.81 % Short-term borrowings 1,056 2,005 (47.33 )% Long-term borrowings 2,438 2,516 (3.10 )% TOTAL INTEREST EXPENSE 12,238 12,484 (1.97 )% NET INTEREST INCOME 16,140 13,746 17.42 % (RECOVERY) PROVISION FOR CREDIT LOSSES (2,969 ) 138 (2,251.45 )% NET INTEREST INCOME AFTER (RECOVERY) PROVISION OF CREDIT LOSSES 19,109 13,608 40.42 % NON-INTEREST INCOME: Service charges 483 515 (6.21 )% Net debt securities gains (losses), available for sale 305 (23 ) 1,426.09 % Net equity securities gains (losses) 17 (10 ) 270.00 % Bank-owned life insurance 301 463 (34.99 )% Gain on sale of loans 408 305 33.77 % Insurance commissions 152 153 (0.65 )% Brokerage commissions 167 186 (10.22 )% Loan broker income 252 222 13.51 % Debit card income 308 329 (6.38 )% Other 175 322 (45.65 )% TOTAL NON-INTEREST INCOME 2,568 2,462 4.31 % NON-INTEREST EXPENSE: Salaries and employee benefits 6,483 6,422 0.95 % Occupancy 874 905 (3.43 )% Furniture and equipment 997 939 6.18 % Software amortization 419 190 120.53 % Pennsylvania shares tax 413 320 29.06 % Professional fees 505 552 (8.51 )% Federal Deposit Insurance Corporation deposit insurance 397 359 10.58 % Marketing 47 71 (33.80 )% Intangible amortization 25 26 (3.85 )% Merger expense 1,093 — n/a Other 1,341 1,839 (27.08 )% TOTAL NON-INTEREST EXPENSE 12,594 11,623 8.35 % INCOME BEFORE INCOME TAX PROVISION 9,083 4,447 104.25 % INCOME TAX PROVISION 1,716 639 168.54 % NET INCOME AVAILABLE TO COMMON SHAREHOLDERS' $ 7,367 $ 3,808 93.46 % EARNINGS PER SHARE - BASIC $ 0.97 $ 0.51 90.20 % EARNINGS PER SHARE - DILUTED $ 0.95 $ 0.51 86.27 % WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 7,589,592 7,512,520 1.03 % WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 7,728,688 7,512,520 2.88 % **PENNS WOODS BANCORP, INC.** **AVERAGE BALANCES AND INTEREST RATES** **(UNAUDITED)** **Three Months Ended** **March 31, 2025** **March 31, 2024** **(DollarsinThousands)** **Average** **Balance** **(1)** **Interest** **Average** **Rate** **Average** **Balance** **(1)** **Interest** **Average** **Rate** ASSETS: Tax-exempt loans (3) $ 68,615 $ 556 3.28 % $ 69,349 $ 463 2.69 % All other loans 1,824,502 25,575 5.68 % 1,781,962 23,494 5.30 % Total loans (2) 1,893,117 26,131 5.60 % 1,851,311 23,957 5.20 % Taxable securities 191,040 2,188 4.64 % 200,275 2,144 4.35 % Tax-exempt securities (3) 10,751 76 2.87 % 16,529 123 3.03 % Total securities 201,791 2,264 4.55 % 216,804 2,267 4.25 % Interest-bearing balances in other financial institutions 14,699 116 3.20 % 10,199 129 5.09 % Total interest-earning assets 2,109,607 28,511 5.48 % 2,078,314 26,353 5.10 % Other assets 138,990 130,958 TOTAL ASSETS $ 2,248,597 $ 2,209,272 LIABILITIES AND SHAREHOLDERS’ EQUITY: Savings $ 209,025 234 0.45 % $ 218,722 268 0.49 % Super Now deposits 208,537 904 1.76 % 215,870 1,084 2.02 % Money market deposits 317,306 2,468 3.15 % 292,707 2,359 3.24 % Time deposits 507,085 5,138 4.11 % 407,169 4,252 4.20 % Total interest-bearing deposits 1,241,953 8,744 2.86 % 1,134,468 7,963 2.82 % Short-term borrowings 95,339 1,056 4.49 % 144,350 2,005 5.59 % Long-term borrowings 230,682 2,438 4.29 % 259,697 2,516 3.90 % Total borrowings 326,021 3,494 4.35 % 404,047 4,521 4.50 % Total interest-bearing liabilities 1,567,974 12,238 3.17 % 1,538,515 12,484 3.26 % Demand deposits 449,384 451,877 Other liabilities 31,524 29,260 Shareholders’ equity 199,715 189,620 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,248,597 $ 2,209,272 Interest rate spread (3) 2.31 % 1.84 % Net interest income/margin (3) $ 16,273 3.13 % $ 13,869 2.69 % 1. Information on this table has been calculated using average daily balance sheets to obtain average balances. 2. Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings. 3. Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21% **Three Months Ended March 31,** **2025** **2024** Total interest income $ 28,378 $ 26,230 Total interest expense 12,238 12,484 Net interest income (GAAP) 16,140 13,746 Tax equivalent adjustment 133 123 Net interest income (fully taxable equivalent) (non-GAAP) $ 16,273 $ 13,869 **(DollarsinThousands,Except PerShareData, Unaudited)** **QuarterEnded** **3/31/2025** **12/31/2024** **9/30/2024** **6/30/2024** **3/31/2024** **Operating Data** Net income $ 7,367 $ 3,741 $ 4,801 $ 5,390 $ 3,808 Net interest income 16,140 15,563 15,056 14,515 13,746 (Recovery) provision for credit losses (2,969 ) 420 740 (1,177 ) 138 Net security gains (losses) 322 (44 ) 36 (19 ) (33 ) Non-interest income, excluding net security gains (losses) 2,246 2,754 2,385 2,044 2,495 Non-interest expense 12,594 12,980 10,884 10,996 11,623 **Performance Statistics** Net interest margin 3.13 % 2.98 % 2.88 % 2.83 % 2.69 % Annualized cost of total deposits 2.07 % 2.22 % 2.27 % 2.14 % 2.01 % Annualized non-interest income to average assets 0.46 % 0.48 % 0.43 % 0.37 % 0.45 % Annualized non-interest expense to average assets 2.24 % 2.32 % 1.95 % 1.98 % 2.10 % Annualized return on average assets 1.31 % 0.67 % 0.86 % 0.97 % 0.69 % Annualized return on average equity 14.76 % 7.28 % 9.60 % 11.12 % 8.03 % Annualized net loan (recoveries) charge-offs to average loans (0.20 )% 0.05 % 0.07 % (0.09 )% 0.08 % Net (recoveries) charge-offs (957 ) 228 328 (396 ) 380 Efficiency ratio 68.36 % 70.73 % 62.26 % 66.25 % 71.41 % **Per Share Data** Basic earnings per share $ 0.97 $ 0.50 $ 0.64 $ 0.72 $ 0.51 Diluted earnings per share 0.95 0.49 0.64 0.72 0.51 Dividend declared per share 0.32 0.32 0.32 0.32 0.32 Book value 27.85 27.16 26.96 26.13 25.72 Tangible book value (Non-GAAP) 25.67 24.97 24.77 23.93 23.50 Common stock price: High 31.90 34.06 23.98 21.08 22.64 Low 27.61 23.74 19.29 17.17 18.44 Close 27.91 30.39 23.79 20.55 19.41 Weighted average common shares: Basic 7,590 7,555 7,544 7,529 7,513 Fully Diluted 7,729 7,693 7,544 7,529 7,513 End-of-period common shares: Issued 8,124 8,067 8,065 8,052 8,036 Treasury (510 ) (510 ) (510 ) (510 ) (510 ) **(DollarsinThousands, Unaudited)** **QuarterEnded** **3/31/2025** **12/31/2024** **9/30/2024** **6/30/2024** **3/31/2024** **Financial Condition Data:** **General** Total assets $ 2,252,235 $ 2,232,338 $ 2,259,250 $ 2,234,617 $ 2,210,116 Loans, net 1,887,140 1,865,230 1,863,586 1,855,054 1,843,805 Goodwill 16,450 16,450 16,450 16,450 16,450 Intangibles 82 107 133 158 184 Total deposits 1,723,954 1,706,081 1,700,321 1,648,093 1,618,562 Noninterest-bearing 465,766 456,936 452,922 461,092 471,451 Savings 211,136 208,340 211,560 218,354 220,932 NOW 203,191 212,687 218,279 209,906 208,073 Money Market 323,869 308,977 321,614 320,101 299,916 Time Deposits 342,983 340,844 328,294 310,187 292,372 Brokered Deposits 177,009 178,297 167,652 128,453 125,818 Total interest-bearing deposits 1,258,188 1,249,145 1,247,399 1,187,001 1,147,111 Core deposits\* 1,203,962 1,186,940 1,204,375 1,209,453 1,200,372 Shareholders’ equity 212,023 205,231 203,694 197,087 193,517 **Asset Quality** Non-performing loans $ 9,987 $ 8,904 $ 7,940 $ 6,784 $ 7,958 Non-performing loans to total assets 0.44 % 0.40 % 0.35 % 0.30 % 0.36 % Allowance for credit losses on loans 10,236 11,848 11,588 11,234 11,542 Allowance for credit losses on loans to total loans 0.54 % 0.63 % 0.62 % 0.60 % 0.62 % Allowance for credit losses on loans to non-performing loans 102.49 % 133.06 % 145.94 % 165.60 % 145.04 % Non-performing loans to total loans 0.53 % 0.47 % 0.42 % 0.36 % 0.43 % **Capitalization** Shareholders’ equity to total assets 9.41 % 9.19 % 9.02 % 8.82 % 8.76 % \* Core deposits are defined as total deposits less time deposits and brokered deposits. **Reconciliation of GAAP and Non-GAAP Financial Measures** **(UNAUDITED)** **Three Months Ended March 31,** **(DollarsinThousands,ExceptPerShareData, Unaudited)** **2025** **2024** GAAP net income $ 7,367 $ 3,808 Net securities (gains) losses, net of tax (254 ) 26 Merger expenses, net of tax 948 — Non-GAAP core earnings $ 8,061 $ 3,834 **Three Months Ended March 31,** **2025** **2024** Return on average assets (ROA) 1.31 % 0.69 % Net securities (gains) losses, net of tax (0.04 )% — % Merger expenses, net of tax 0.16 % — % Non-GAAP core ROA 1.43 % 0.69 % **Three Months Ended March 31,** **2025** **2024** Return on average equity (ROE) 14.76 % 8.03 % Net securities (gains) losses, net of tax (0.51 )% 0.06 % Merger expenses, net of tax 1.90 % — % Non-GAAP core ROE 16.15 % 8.09 % **Three Months Ended March 31,** **2025** **2024** Basic earnings per share (EPS) $ 0.97 $ 0.51 Net securities (gains) losses, net of tax (0.03 ) — Merger expenses, net of tax 0.12 — Non-GAAP basic core EPS $ 1.06 $ 0.51 **Three Months Ended March 31,** **2025** **2024** Diluted EPS $ 0.95 $ 0.51 Net securities (gains) losses, net of tax (0.03 ) — Merger expenses, net of tax 0.12 — Non-GAAP diluted core EPS $ 1.04 $ 0.51 **(DollarsinThousands,ExceptShare and PerShareData, Unaudited)** **QuarterEnded** **3/31/2025** **12/31/2024** **9/30/2024** **6/30/2024** **3/31/2024** Total shareholders' equity $ 212,023 $ 205,231 $ 203,694 $ 197,087 $ 193,517 Goodwill (16,450 ) (16,450 ) (16,450 ) (16,450 ) (16,450 ) Intangibles (82 ) (107 ) (133 ) (158 ) (184 ) Tangible shareholders' equity $ 195,491 $ 188,674 $ 187,111 $ 180,479 $ 176,883 Shares outstanding 7,614,214 7,556,743 7,554,488 7,541,474 7,525,372 Book value per share $ 27.85 $ 27.16 $ 26.96 $ 26.13 $ 25.72 Tangible book value per share (Non-GAAP) $ 25.67 $ 24.97 $ 24.77 $ 23.93 $ 23.50 ### Related Stocks - [PWOD.US](https://longbridge.com/en/quote/PWOD.US.md) ## Related News & Research - [Northwest Bancshares, Inc. 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