Breaking Down Penns Woods Bancorp, Inc. (PWOD) Financial Health: Key Insights for Investors

Are you looking to understand the financial stability and future prospects of Penns Woods Bancorp, Inc. (PWOD) before making investment decisions? In 2024, Penns Woods Bancorp, Inc. reported a net income of $17.7 million, translating to earnings per share of $2.35. Furthermore, the bank saw its deposits increase to $1.7 billion by December 31, 2024. But how do these figures stack up against previous years, and what key factors influenced these results? Keep reading to delve deeper into PWOD's financial performance and discover insights that can guide your investment strategy.

Penns Woods Bancorp, Inc. (PWOD) Revenue Analysis

Penns Woods Bancorp, Inc. (PWOD) generates revenue primarily through its banking operations. These operations include:

• Net interest income: This is the difference between the revenue generated from interest-bearing assets (like loans) and the expense of interest paid on liabilities (like deposits).
• Non-interest income: This includes income from services such as wealth management, insurance, and other fees.

Analyzing these revenue streams provides insights into the financial health and operational efficiency of Penns Woods Bancorp, Inc. For further information, you might find this resource helpful: Mission Statement, Vision, & Core Values of Penns Woods Bancorp, Inc. (PWOD).

To accurately assess Penns Woods Bancorp, Inc.'s financial performance, it is essential to examine its year-over-year revenue growth. While specific, detailed figures for the 2024 fiscal year are not available, examining historical trends can provide valuable context. Investors typically look for consistent growth in both net interest income and non-interest income to gauge the company's ability to expand its business and maintain profitability.

The contribution of different business segments to Penns Woods Bancorp, Inc.'s overall revenue highlights the diversification of its income sources. A detailed breakdown would typically show:

• The percentage of revenue derived from community banking activities.
• The revenue generated by wealth management services.
• Any other significant business lines that contribute to the total revenue.

Significant changes in revenue streams often signal strategic shifts or market impacts. Investors should be aware of factors such as:

• Changes in interest rates, which can impact net interest income.
• Fluctuations in fee income due to market conditions or changes in service offerings.
• The impact of economic conditions on loan demand and credit quality.

A comprehensive table summarizing key revenue components and their year-over-year changes would offer a clear picture of Penns Woods Bancorp, Inc.'s revenue dynamics. As of now, I do not have enough information to provide the 2024 numbers.

Penns Woods Bancorp, Inc. (PWOD) Profitability Metrics

Analyzing the profitability of Penns Woods Bancorp, Inc. (PWOD) provides key insights into its financial health and operational efficiency. Profitability metrics, such as gross profit, operating profit, and net profit margins, reveal how effectively the company generates earnings from its revenue and manages its expenses.

Here's a breakdown of key profitability aspects:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This ratio measures the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This ratio represents the percentage of revenue that translates into net income. It reflects the company's overall profitability after accounting for all expenses, including taxes and interest.

While specific 2024 fiscal year data for Penns Woods Bancorp, Inc. (PWOD) is not available, examining historical trends and industry benchmarks can provide valuable context. Investors often compare a company's profitability ratios to those of its peers to assess its relative performance.

Operational efficiency is crucial for maintaining and improving profitability. Key areas to consider include:

• Cost Management: Effective control over operating expenses can significantly impact profitability.
• Gross Margin Trends: Monitoring changes in gross margin can reveal insights into pricing strategies and cost management effectiveness.

For additional insights into the values and principles guiding Penns Woods Bancorp, Inc., explore their Mission Statement, Vision, & Core Values of Penns Woods Bancorp, Inc. (PWOD).

Penns Woods Bancorp, Inc. (PWOD) Debt vs. Equity Structure

Understanding how Penns Woods Bancorp, Inc. (PWOD) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses both debt and equity to fund its activities. The balance between debt and equity can significantly impact the company's financial stability and potential returns.

As of the fiscal year 2024, Penns Woods Bancorp, Inc. (PWOD) exhibits the following debt characteristics:

• Long-term Debt: Specific figures for long-term debt would be detailed in the company's financial statements.
• Short-term Debt: Similarly, the exact amount of short-term debt is available in their reports.

The debt-to-equity ratio is a key metric to evaluate Penns Woods Bancorp, Inc. (PWOD)'s financial leverage. It compares the total debt to the total equity, providing insight into how much the company relies on debt versus equity to finance its assets. A lower ratio generally indicates a more financially stable company. Here's a general framework:

• Calculation: Debt-to-Equity Ratio = Total Liabilities / Shareholder's Equity
• Interpretation: The resulting ratio is then compared against industry averages to determine if Penns Woods Bancorp, Inc. (PWOD)'s leverage is typical, conservative, or aggressive.

Recent activities such as debt issuances, credit ratings, or refinancing provide clues about Penns Woods Bancorp, Inc. (PWOD)'s financial strategy and health. For instance:

• Debt Issuances: Any new debt issued could indicate expansion plans or the need to cover operational costs.
• Credit Ratings: Maintained or improved credit ratings suggest confidence from rating agencies in the company's ability to manage debt.
• Refinancing: Refinancing activities might point to efforts to lower interest rates or extend the maturity of debt.

Balancing debt financing and equity funding is a strategic decision. Penns Woods Bancorp, Inc. (PWOD) must weigh the advantages and disadvantages of each:

• Debt Financing: Offers the benefit of not diluting equity but comes with the obligation of repayment and interest expenses.
• Equity Funding: Doesn't require repayment but dilutes ownership and can affect earnings per share.

Below is a hypothetical table illustrating how Penns Woods Bancorp, Inc. (PWOD) might manage its debt and equity:

Further insights into Penns Woods Bancorp, Inc. (PWOD)'s financial health can be found here: Breaking Down Penns Woods Bancorp, Inc. (PWOD) Financial Health: Key Insights for Investors

Penns Woods Bancorp, Inc. (PWOD) Liquidity and Solvency

Here's an analysis of Penns Woods Bancorp, Inc. (PWOD)'s financial health, focusing on liquidity.

Assessing Penns Woods Bancorp, Inc.'s Liquidity:

• Current and Quick Ratios: As of February 2025, Penns Woods Bancorp, Inc.'s current ratio is 2.97. Historically, the average current ratio over the last ten years is 18.79. The current ratio was at its lowest in December 2023 at 0.03 and highest in December 2020 at 254.47.
• Analysis of Working Capital Trends: Total assets increased to $2.2 billion as of December 31, 2024, a rise of $27.5 million compared to December 31, 2023. Net loans increased by $36.9 million to $1.9 billion at the end of 2024. Deposits also saw an increase of $116.6 million, reaching $1.7 billion. Shareholders' equity increased by $13.7 million to $205.2 million.
• Cash Flow Statements Overview: For the nine months ended September 30, 2024, net income was $13.998 million, compared to $11.053 million for the same period in 2023.
• Potential Liquidity Concerns or Strengths: Non-performing loans to total loans increased to 0.47% as of December 31, 2024, from 0.17% at the end of 2023. Non-performing loans increased to $8.9 million at the end of 2024 from $3.1 million at the end of 2023.

Key Financial Data:

• Net Income: Penns Woods Bancorp reported a net income of $17.7 million for the year ended December 31, 2024, with basic and diluted earnings per share of $2.35. This is an increase from $16.6 million in 2023.
• Net Interest Income: The company experienced a $3.9 million year-over-year increase in net interest income.
• Total Assets: Total assets reached $2.2 billion as of December 31, 2024.
• Net Loans: Net loans amounted to $1.9 billion as of December 31, 2024.
• Deposits: Total deposits stood at $1.7 billion by the end of 2024.
• Shareholders' Equity: Shareholders' equity increased to $205.2 million.
• Net Interest Margin: The net interest margin for 2024 was 2.83%.
• Book Value Per Share: The book value per share was $27.16 as of December 31, 2024, compared to $25.51 at the end of 2023.

Additional Points:

• Merger: Northwest Bancshares, Inc. is set to acquire Penns Woods Bancorp in an all-stock transaction valued at approximately $270.4 million.
• Dividend: Penns Woods Bancorp declared a fourth quarter 2024 cash dividend of $0.32 per share.
• Market Capitalization: As of April 17, 2025, Penns Woods Bancorp has a market capitalization of $200.90 million.

For more insights into Penns Woods Bancorp, Inc. (PWOD), check out: Exploring Penns Woods Bancorp, Inc. (PWOD) Investor Profile: Who’s Buying and Why?

Penns Woods Bancorp, Inc. (PWOD) Valuation Analysis

Assessing whether Penns Woods Bancorp, Inc. (PWOD) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance, and analyst sentiment. These indicators provide a comprehensive view of the company's current market position.

Here's a breakdown of critical valuation elements:

• Price-to-earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation if it's significantly above industry averages, while a lower P/E could indicate undervaluation.
• Price-to-book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued, as it implies the market is valuing the company at less than its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is used to assess the overall value of a company relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s particularly useful for comparing companies with different capital structures. A lower EV/EBITDA multiple may indicate undervaluation.

Analyzing these ratios in isolation is not enough; it’s essential to compare them against industry peers and historical averages to provide context.

Stock Price Trends

Reviewing the stock price trends of Penns Woods Bancorp, Inc. (PWOD) over the past 12 months, or longer, helps to understand market sentiment and identify potential overbought or oversold conditions. Consistent upward trends might suggest overvaluation, especially if not supported by fundamental improvements. Conversely, a prolonged decline could indicate undervaluation, assuming the company's fundamentals remain solid.

Dividend Yield and Payout Ratios

For income-focused investors, dividend yield and payout ratios are crucial. The dividend yield indicates the return on investment based on dividends alone, while the payout ratio shows the proportion of earnings paid out as dividends. A high dividend yield might make the stock attractive, but a high payout ratio could be unsustainable if earnings decline.

Analyst Consensus

Tracking analyst ratings (buy, hold, or sell) and price targets provides additional insights into market expectations. A consensus of 'buy' ratings suggests analysts believe the stock is undervalued, while 'sell' ratings indicate the opposite. However, it's important to consider that analyst opinions can vary and should not be the sole basis for investment decisions.

To illustrate, consider a hypothetical scenario:

In this scenario, Penns Woods Bancorp, Inc. (PWOD) appears potentially undervalued compared to its industry peers, based on lower P/E, P/B, and EV/EBITDA ratios, coupled with a higher dividend yield.

Keep in mind that this is a simplified example. A comprehensive valuation analysis would involve a more detailed examination of the company's financial statements, growth prospects, and competitive landscape. For more insights, check out: Breaking Down Penns Woods Bancorp, Inc. (PWOD) Financial Health: Key Insights for Investors

Penns Woods Bancorp, Inc. (PWOD) Risk Factors

Penns Woods Bancorp, Inc. (PWOD) faces a variety of internal and external risks that could impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these factors is crucial for investors assessing the company's stability and future prospects. For further insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Penns Woods Bancorp, Inc. (PWOD).

One significant risk stems from the highly competitive nature of the financial services industry. Penns Woods Bancorp, Inc. (PWOD) competes with other community banks, regional banks, and larger national institutions. This competition can pressure interest rates, service fees, and customer acquisition costs, potentially impacting profitability.

Regulatory changes also pose a persistent risk. Banks are subject to extensive regulations concerning capital requirements, lending practices, and consumer protection. Changes in these regulations can increase compliance costs and restrict certain business activities. For example, amendments to the Dodd-Frank Act or changes in capital adequacy rules could require Penns Woods Bancorp, Inc. (PWOD) to adjust its operations and financial strategies.

Market conditions, including economic downturns, interest rate fluctuations, and credit cycles, can significantly affect Penns Woods Bancorp, Inc. (PWOD)'s performance. During economic recessions, loan defaults may increase, and demand for banking services may decline. Rising interest rates can reduce the value of fixed-rate assets and increase borrowing costs. Effective risk management is essential to navigate these challenges.

Operational risks include potential failures in internal processes, systems, or human capital. Cybersecurity threats are a growing concern, as data breaches and cyberattacks can disrupt operations, damage reputation, and result in financial losses. Penns Woods Bancorp, Inc. (PWOD) must invest in robust security measures and employee training to mitigate these risks.

Financial risks involve credit risk, interest rate risk, and liquidity risk. Credit risk arises from the possibility that borrowers may default on their loans. Interest rate risk refers to the impact of interest rate changes on the bank's earnings and capital. Liquidity risk is the risk of being unable to meet financial obligations when they come due. Prudent management of these risks is vital for maintaining financial stability.

Strategic risks include challenges related to strategic decision-making, market positioning, and innovation. Failure to adapt to changing customer preferences or technological advancements can weaken the company's competitive position. Penns Woods Bancorp, Inc. (PWOD) must continuously evaluate its strategic plans and adapt to evolving market dynamics.

Mitigation strategies often involve diversifying the loan portfolio, maintaining adequate capital reserves, implementing robust risk management systems, and adhering to regulatory guidelines. Regular stress testing and scenario analysis can help assess the potential impact of adverse events and inform risk management decisions.

Penns Woods Bancorp, Inc. (PWOD) Growth Opportunities

Penns Woods Bancorp, Inc. (PWOD) faces a dynamic landscape of growth opportunities driven by strategic initiatives, market conditions, and competitive positioning. Understanding these factors is crucial for investors evaluating the company's potential.

Analysis of key growth drivers:

• Product Innovations: Banks are continuously working on new products.
• Market expansions: These expansions include digital banking.
• Acquisitions: Banks are always open to acquisitions to increase their market share.

Future revenue growth projections and earnings estimates:

While specific revenue growth projections for Penns Woods Bancorp, Inc. (PWOD) aren't available, several factors point to potential growth areas. The company's focus on community banking, coupled with strategic investments in technology, could drive revenue growth. Monitoring the bank's financial reports and investor presentations will provide insights into their projected earnings and revenue estimates.

Strategic initiatives or partnerships that may drive future growth:

Penns Woods Bancorp, Inc. (PWOD) may explore strategic partnerships to expand its service offerings or geographic reach. These initiatives could include collaborations with fintech companies to enhance digital banking capabilities or partnerships with local businesses to offer specialized financial products.

Competitive advantages that position the company for growth:

One of Penns Woods Bancorp, Inc.'s (PWOD) competitive advantages lies in its strong community ties and local market knowledge. This allows the bank to offer personalized services and build lasting relationships with customers. Additionally, a focus on operational efficiency and risk management can contribute to sustainable growth.

Here's a look at some potential factors influencing Penns Woods Bancorp, Inc.'s (PWOD) future performance:

For more insights into Penns Woods Bancorp, Inc. (PWOD) and its investors, check out: Exploring Penns Woods Bancorp, Inc. (PWOD) Investor Profile: Who’s Buying and Why?