Penns Woods Bancorp — Investor Presentation (November 2024)
24 slides from Penns Woods Bancorp's investor presentation, Nov 26, 2024
Slide 1: Creating Success by Delivering Solutions
1 Creating Success by Delivering Solutions Penns Woods Bancorp, Inc. November 2024
Slide 2: Forward-Looking Information
2 Forward-Looking Information Certain statements contained in this presentation are forward-looking in nature. These include all statements about PWB’s plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe"
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP measures include tangible book value per share and return on average tangible comm
Slide 4: Company Profile
4 $1.2 $1.3 $1.3 $1.5 $1.7 $1.7 $1.8 $1.9 $2.0 $2.2 $2.3 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024Q3 Company Profile Penns Woods Bancorp, Inc. NASDAQ Ticker: PWOD Market Cap: $230.3 million (11/19/2024) Headquarters: Williamsport, Lycoming County, PA Branch Offices: 24 Total Assets: $2.
Slide 5: Company Structure
5 Company Structure Penns Woods Bancorp, Inc. (1983) Jersey Shore State Bank Bank Subsidiary (1934) M-Group DBA The Comprehensive Financial Group (2000) Woods Investment Company, Inc. (1994) United Insurance Solutions, LLC (2017) Woods Real Estate (1984) Luzerne Bank Bank Subsidiary (2013) Penns Woo
Slide 6: Market Area
6 Market Area Penns Woods Bancorp, Inc. Primary Areas of Operation • Luzerne, PA (Primary Service Area) • Lycoming, PA – Williamsport, PA • Centre, PA – State College, PA • Clinton, PA • Montour, PA – Danville, PA • Union, PA – Lewisburg, PA • Blair, PA Source: S&P Global Market Intelligence. Jersey
Slide 7: Mission
7 Mission Remain a high performing regional community bank Continue creating long-term shareholder value through a combination of Return on Equity and cash dividends to shareholders Grow the bank in a safe, sound, diversified, and profitable manner Be the “best of the best” in financial services Be
Slide 8: Tangible Book Value (+ Dividends) Growth Track Record
8 127.9% 121.4% 0% 20% 40% 60% 80% 100% 120% 140% PWOD Peers 5.2% 2.9% 10.5% 10.2% PWOD Peers Tangible Book Value (+ Dividends) Growth Track Record Penns Woods Bancorp, Inc. Growth in Economic Value – Since 2014 YE Tangible Book Value “TBV” + Dividends Annual Growth Rates TBV + Dividends CAGR – Sinc
Slide 9: High Quality Deposit Base
9 140bps 157bps PWOD KRX High Quality Deposit Base Penns Woods Bancorp, Inc. Historically Consistent Deposit Base… … Leads to Strength in Times of Turmoil Source: S&P Global Market Intelligence. Note: Peer group consists of the NASDAQ Regional Bank index as of November 2024. Note: Deposit Beta calcu
Slide 10: Financial Summary 2021 – 2024Q3
10 0.85% 0.90% 0.79% 0.84% 2021 2022 2023 2024 YTD Financial Summary 2021 – 2024Q3 Penns Woods Bancorp, Inc. Return on Equity (%) Return on Average Assets (%) 9.9% 10.7% 9.8% 9.7% 2021 2022 2023 2024 YTD Earnings Per Share - Basic $2.27 $2.47 $2.34 $2.48 2021 2022 2023 2024 YTD Source: S&P Global Ma
Slide 11: Value Proposition
11 Value Proposition Franchise Value Capital Balance Sheet Integrity Diversification Expansion Penns Woods Bancorp, Inc. 1 2 3 4 5
Slide 12: Value Proposition: Franchise Value
12 Value Proposition 1 Franchise Value Source: S&P Global Market Intelligence, FDIC. Note: FDIC deposit data as of 6/30/2024. (1) Excludes banks over $50 billion in most recent quarter total assets; MSA: Metropolitan Statistical Area. PWOD Commands Excellent Market Share in the Four Major MSAs It Op
Slide 13: Loan and Deposit Portfolio Composition
13 Loan and Deposit Portfolio Composition Penns Woods Bancorp, Inc. Loan Composition Deposit Composition Commercial, Financial, and Ag. 11% Resi 44% CRE 29% Construction 2% Auto 13% Other 1% Non-Interest Bearing 27% Savings 12% NOW 13% Money Market 19% Time Deposits 19% Brokered CDS 10% Yield on Tot
Slide 14: Loan and Deposit Portfolio Composition, Continued
14 $335 $449 $494 $519 $471 $453 $177 $210 $236 $248 $219 $212 $219 $288 $366 $373 $215 $218 $216 $284 $319 $271 $299 $322 $378 $264 $205 $146 $260 $328 $125 $168 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2019 2020 2021 2022 2023 2024Q3 Noninterest Bearing Savings NOW Money Market Ti
Slide 15: Value Proposition: Capital
15 7.9% 5.3% $1.25 $1.28 9.3% 8.7% $112 $193 Capital Tier 1 Capital ($M) Value Proposition Long-term track record of building capital while providing strong shareholder returns Cash Dividend as a % of Tangible Capital(1) Source: S&P Global Market Intelligence, Company documents. (1) Cash Dividend as
Slide 16: Value Proposition: Balance Sheet Integrity
16 0.4% 1.3% 2.8% PWOD Pennsylvania Banks All Banks Value Proposition Cumulative Net Charge-offs / Avg. Loans Balance Sheet Integrity 2019 – 2024Q3 2014 – 2024Q3 Source: S&P Global Market Intelligence, Company documents. (1) All banks currently operating, acquired, and defunct companies. (2) Annuali
Slide 17: Value Proposition: Diversification and Expansion
17 52% 26% 9% 2% 3% 8% Consumer Net Interest Income Commerical Net Interest Income Other Net Interest Income Mortgage Banking Service Charges on Deposits Insurance & Other Fee Income $0.3 $0.4 $0.4 $0.4 $0.4 $0.5 $0.5 $0.6 $0.5 $0.6 $0.7 Value Proposition 4 Diversification Total Revenue(1) 2024Q3 So
Slide 18: Strategies for a Successful Future
18Penns Woods Bancorp, Inc. Strategies for a Successful Future Leverage Holding Company Structure Emphasis on “E” Delivery Channels Re-Engineering Company Remain Different From Our Peers Strive for Excellence
Slide 19: Delivery Channel Changes
19 1.3 2.0 2.4 5.7 7.6 8.6 2019 2020 2021 2022 2023 2024Q3 18.3 24.1 25.1 24.2 26.5 27.8 2019 2020 2021 2022 2023 2024Q3 42.5 45.2 50.1 58.0 51.2 65.7 2019 2020 2021 2022 2023 2024Q3 Delivery Channel Changes Penns Woods Bancorp, Inc. Estatement Accounts Internet Banking Accounts Customer Utilization
Slide 20: Future Holding Company Structure
20Penns Woods Bancorp, Inc. Future Holding Company Structure Penns Woods Bancorp, Inc. Holding Company Western Region (Brand to be Determined) Blair, Cambria, Clearfield and Huntingdon Counties Jersey Shore State Bank Lycoming, Clinton, Centre, Montour, Union, Columbia, Snyder and Northumberland Cou
Slide 21: Strong Financial Management
21 Strong Financial Management Penns Woods Bancorp, Inc. Culture & People Quality Loan Growth Core Deposit Growth Capital Earnings Tax Management Investment Portfolio
Slide 22: Selected Financial Data
22 (In Thousands) 2024 2023 2023 2022 2021 2020 2019 RESULTS OF OPERATIONS Net interest income $ 43,317 $ 41,016 $ 54,964 $ 57,780 $ 49,718 $ 48,223 $ 50,815 (Recovery) provision for credit losses (299) 263 (1,479) 1,910 640 2,625 2,735 Non-interest income 6,908 6,154 8,375 8,713 11,669 12,168 10,45
Slide 23: Per Share Metrics
23 Per Share Metrics Penns Woods Bancorp, Inc. $2.23 $2.16 $2.27 $2.47 $2.34 $2.48 2019 2020 2021 2022 2023 2024 YTD Earnings Per Share - Basic Tangible Book Value per Share $19.45 $20.75 $21.88 $21.38 $23.29 $24.77 2019 2020 2021 2022 2023 2024Q3 Source: Company documents. (1) 2024 YTD Annualized s
Slide 24: Non-GAAP Reconciliation
24 Non -GAAP Reconciliation Penns Woods Bancorp, Inc. Source: S&P Global Market Intelligence, Company documents. (1) Tax affected with each respective year’s statutory corporate tax rate. At or For the Fiscal Year At or For the nine Months Ended December 31, Ended September 30, 2019 2020 2021 2022 2
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