Executive Summary

Q2 2024 delivered solid sequential and year-over-year improvement: diluted EPS rose to $0.72 from $0.51 in Q1 and $0.59 in Q2 2023, driven by a higher net interest margin (2.83% vs 2.69% in Q1) and a negative provision (net recovery) of $1.18M .
Total revenue (net interest income + noninterest income) was $16.54M vs $16.21M in Q1 and $15.41M in Q2 2023, reflecting loan growth, higher asset yields, and stabilized cost of funds; efficiency ratio improved to 66.25% (from 71.41% in Q1) .
Asset quality improved sequentially: nonperforming loans fell to $6.8M (0.36% of loans) from $8.0M (0.43%) in Q1; net loan recoveries were $396K vs $380K of charge-offs in Q1 .
No formal guidance or earnings call transcript was available; dividend maintained at $0.32 per share, and the Board later declared a Q3 2024 dividend of $0.32, underscoring payout stability .
Consensus estimates from S&P Global were unavailable for this ticker at the time of analysis; we anchor to company-reported results and trends and note the estimate gap explicitly (S&P Global consensus unavailable due to missing mapping).

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded 14 bps sequentially to 2.83% as asset yields rose and cost of funds stabilized; management noted the quarter’s NIM increase was “driven by an increase in the rate paid on interest-earning assets of 74 bps” .
Credit benefited from recoveries and minimal charge-offs: negative provision for credit losses of $1.18M in Q2; net recoveries of $396K aided results and supported allowance dynamics .
Loan growth and higher yields lifted interest income; average loans rose and the average yield on the loan portfolio increased 73 bps YoY, driving a $4.7M increase in tax-equivalent loan interest for the quarter .

What Went Wrong

Deposit mix remains a headwind: migration from core deposits into higher-cost time deposits continued; brokered deposits were used to fund loan growth, pressuring funding costs despite some stabilization .
Nonperforming loans increased YoY to $6.8M (0.36% of loans) from $4.3M (0.24%) though improved from Q1 2024 ($8.0M, 0.43%) .
Noninterest income was essentially flat YoY at $2.03M versus $2.02M in Q2 2023, offering limited offset to funding cost pressures; mix of fee categories was stable without a significant growth driver .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Total revenue (NII + Noninterest income, $MM)	$15.41	$16.21	$16.54
Net interest income ($MM)	$13.39	$13.75	$14.52
Noninterest income ($MM)	$2.02	$2.46	$2.03
Diluted EPS ($)	$0.59	$0.51	$0.72
Net interest margin (%)	2.77%	2.69%	2.83%
ROA (%)	0.80%	0.69%	0.97%
ROE (%)	9.53%	8.03%	11.12%
Efficiency ratio (%)	73.78%	71.41%	66.25%

KPIs and Balance Sheet/Asset Quality

Metric	Q2 2023	Q1 2024	Q2 2024
Loans, net ($MM)	$1,757.81	$1,843.81	$1,855.05
Total deposits ($MM)	$1,553.76	$1,618.56	$1,648.09
Noninterest-bearing deposits ($MM)	$475.94	$471.45	$461.09
Time deposits ($MM)	$226.22	$292.37	$310.19
Brokered deposits ($MM)	$87.18	$125.82	$128.45
Core deposits ($MM)	$1,240.36	$1,200.37	$1,209.45
Nonperforming loans ($MM)	$4.28	$7.96	$6.78
NPLs / total loans (%)	0.24%	0.43%	0.36%
ACL on loans ($MM)	$11.59	$11.54	$11.23
ACL / loans (%)	0.66%	0.62%	0.60%
Net charge-offs (recoveries) ($000s)	$(472)	$380	$(396)
Dividend per share ($)	$0.32	$0.32	$0.32
Book value per share ($)	$24.69	$25.72	$26.13
Tangible book value per share ($)	$22.32	$23.50	$23.93

Notes: “Total revenue” calculated as net interest income + total noninterest income, each sourced from the company’s Consolidated Statement of Income .

Guidance Changes

No formal quantitative guidance was provided in Q2 2024 earnings materials. Dividend policy remained consistent at $0.32 per share in Q2, and the Board subsequently declared a Q3 2024 dividend of $0.32 per share (payable Sep 24, 2024) .

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	FY/Q3	None	None	N/A
Dividend per share	Q2 2024	$0.32	$0.32	Maintained
Dividend per share	Q3 2024	N/A	$0.32 (declared)	Maintained

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available.

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Net interest margin and cost of funds	Q4 2023: NIM 2.73%; higher funding costs from FOMC actions; deposit and borrowing costs elevated . Q1 2024: NIM 2.69%; continued funding cost pressure, higher time and brokered deposit usage .	NIM improved to 2.83%; increase driven by 74 bps rise in rate on interest-earning assets; cost of funds stabilized .	Improving sequentially
Deposit mix (time & brokered)	Q4 2023: shift to time/brokered deposits to fund loan growth . Q1 2024: continued time deposit campaigns and brokered deposits .	Time deposits and brokered deposits remain elevated; core deposits stable; continued campaigns (five-month focus) .	Ongoing mix shift; stable core
Loan growth and yields	Q4 2023: balance and yield growth aided interest income . Q1 2024: average loans +$185.5M YoY; yields higher .	Average loans +$120.8M YoY; loan yield +73 bps YoY; TE loan interest +$4.7M YoY .	Positive
Credit quality	Q4 2023: NPLs down to 0.17% of loans; recoveries . Q1 2024: NPLs rose to 0.43%; charge-offs $380K .	NPLs improved to 0.36%; net recoveries $396K; office exposure minimal at $15.5M with no delinquencies .	Sequential improvement
Governance/compensation	—	CEO contract amended: lower base, higher at-risk comp; bonus metrics aligned to ROA/ROE/EPS/asset growth/credit quality .	Alignment improved
Macro (rates)	Higher rates increased deposit and borrowing costs (Q4/Q1) .	Cost of funds stabilized; asset yields rising .	Stabilizing

Management Commentary

“The net interest margin for the three … months ended June 30, 2024 was 2.83% … The increase in the net interest margin for the three month period was driven by an increase in the rate paid on interest-earning assets of 74 basis points.”
“Brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit funding costs.”
“Exposure to non-owner occupied office space is minimal at $15.5 million at June 30, 2024 with none of these loans being delinquent.”

Q&A Highlights

No earnings call transcript or Q&A was available for Q2 2024 (none found in company documents or transcript repositories) [ListDocuments: earnings-call-transcript returned none].

Estimates Context

Wall Street consensus (S&P Global) for PWOD Q2 2024 EPS/revenue was unavailable due to a missing Capital IQ mapping for this ticker at the time of retrieval; consequently, we cannot present a beat/miss versus S&P Global consensus. We anchor analysis to company-reported results and intra-company trends.
We will monitor for restoration of S&P Global coverage/mapping for future comparisons. (S&P Global consensus unavailable)

Key Takeaways for Investors

Margin inflection: sequential NIM expansion to 2.83% and better efficiency (66.25%) indicate operating leverage as asset yields outpace stabilized funding costs; watch if NIM gains persist into H2 as deposits reprice .
Credit benign: net recoveries and modest reserve ratio (0.60% of loans) with minimal office exposure support earnings durability; watch NPL trajectory given the YoY increase from a low base .
Funding still elevated: time and brokered deposits remain key funding sources; core deposits stable but mix continues to pressure cost of funds despite recent stabilization .
Earnings cadence: revenue growth plus negative provision delivered $0.72 EPS; sustainability depends on further asset yield tailwinds, funding discipline, and fee stability .
Capital and payout: tangible book rose to $23.93; dividend maintained at $0.32 and subsequently declared for Q3, signaling confidence in earnings/capital support .
No guidance/no call: without formal guidance or a call, focus on reported run-rate trends (NIM, funding mix, credit) and next-quarter disclosures for confirmation of momentum .
Tactical angle: if NIM expansion and negative provision trends hold while deposit costs stay contained, near-term EPS can remain resilient; key near-term catalyst is continued NIM improvement versus any resurgence in funding costs .

Citations

Q2 2024 press release tables and narrative:
Q2 2024 8-K (Item 2.02 and Exhibit 99.1 with full financials):
Q1 2024 8-K (trend):
Q4 2023 8-K (trend):
CEO compensation press release (Q2 2024):
Q3 2024 dividend press release:

PENNS WOODS BANCORP INC (PWOD)·Q2 2024 Earnings Summary