Penns Woods Bancorp, Inc. (PWOD) has reported a 21.30 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $2.95 million, or $0.62 a share in the quarter, compared with $3.75 million, or $0.79 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.66 million, or $0.56 a share compared with $3.16 million or $0.66 a share, a year ago. Revenue during the quarter went down marginally by 2.32 percent to $12.86 million from $13.17 million in the previous year period. Non-interest income for the quarter fell 13.74 percent over the last year period to $2.86 million.
Penns Woods Bancorp, Inc. has made provision of $0.33 million for loan losses during the quarter, down 31.25 percent from $0.48 million in the same period last year.
Net interest margin contracted 17 basis points to 3.38 percent in the quarter from 3.55 percent in the last year period. Efficiency ratio for the quarter deteriorated to 66.90 percent from 64.60 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Adding high quality earning assets and continuing to shift revenue from the investment portfolio to the loan portfolio was a top focus during 2016. The growth in home equity products coupled with a decrease in the size of the investment portfolio increased balance sheet protection to a rising rate environment as the duration of the earning asset portfolio was shortened. Another focus during 2016 was debit card fraud. During the past year we replaced all debit cards in order to implement EMV card technology to better protect the security of our customers. We view this action as important both to protect our customers' information and because debit card fraud can impact our bottom line by consuming resources intended for other activities, in addition to the actual monetary cost," said Richard A. Grafmyre, CFP, president and chief executive officer.
Liabilities outpace assets growth
Total assets stood at $1,348.59 million as on Dec. 31, 2016, up 2.16 percent compared with $1,320.06 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,210.34 million as on Dec. 31, 2016, up 2.24 percent from $1,183.78 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,080.78 million as on Dec. 31, 2016, up 4.61 percent compared with $1,033.16 million on Dec. 31, 2015. Deposits stood at $1,095.21 million as on Dec. 31, 2016, up 6.14 percent compared with $1,031.88 million on Dec. 31, 2015. Investments stood at $134.14 million as on Dec. 31, 2016, down 24.27 percent or $42.99 million from year-ago. Shareholders equity stood at $138.25 million as on Dec. 31, 2016, up 1.45 percent or $1.97 million from year-ago.
Return on average assets moved down 28 basis points to 0.87 percent in the quarter from 1.15 percent in the last year period. At the same time, return on average equity decreased 230 basis points to 8.43 percent in the quarter from 10.73 percent in the last year period.
Book value per share was $29.20 for the quarter, up 1.71 percent or $0.49 compared to $28.71 for the same period last year.
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