Executive Summary

Q4 2024 EPS fell to $0.50 (diluted $0.49) vs $0.64 in Q3 and $0.77 in Q4 2023, driven by $735k merger expense and higher non-interest expense despite stronger net interest income .
Net interest margin improved sequentially to 2.98% from 2.88% in Q3 and 2.83% in Q2; total interest and dividend income held ~flat q/q, up YoY, as asset yields rose and funding costs stabilized .
Credit costs normalized: provision $420k vs $740k in Q3 (and negative provision YoY), but NPL ratio rose to 0.47% vs 0.42% in Q3 and 0.17% in Q4 2023; ACL coverage to NPL declined to 133% from 146% .
Deposits grew to $1.71B (+$116.6mm YoY) with continued mix shift to time and brokered deposits; short-term borrowings fell sharply YoY, partially offset by higher long-term borrowings .
Stock closed Q4 at $30.39 vs $23.79 in Q3; the announced acquisition by Northwest Bancshares (12/16/24) and improving NIM are likely catalysts despite near-term EPS pressure from merger expenses .

What Went Well and What Went Wrong

What Went Well

Net interest income rose to $15.6mm (+$0.5mm q/q; +$1.6mm YoY), supported by higher asset yields and reduced short-term borrowing costs as legacy assets reprice and securities reinvest at higher rates .
NIM expanded to 2.98% (Q4) from 2.88% (Q3) and 2.83% (Q2), aided by a 34 bps increase in asset yields; management noted cost of funds stabilization .
Deposits up $116.6mm YoY to $1.71B; time and brokered deposits funded loan growth while reducing reliance on short-term borrowings (down ~$104mm YoY) .

What Went Wrong

EPS compressed to $0.50 vs $0.64 in Q3 and $0.77 YoY; non-interest expense rose 18% YoY and included $735k merger expense, elevating the efficiency ratio to 70.73% (vs 62.26% in Q3) .
Asset quality mixed: NPL ratio increased to 0.47% vs 0.42% (Q3) and 0.17% (Q4’23); ACL coverage to NPL declined to 133% from 146% (Q3) and 364% (Q4’23) .
Cost of deposits remains elevated vs prior year (2.22% vs 1.89% YoY), reflecting competitive deposit environment and mix shift to higher-rate time and brokered balances .

Financial Results

Sequential Trends (Q2 → Q3 → Q4 2024)

Metric	Q2 2024	Q3 2024	Q4 2024
EPS - Basic ($)	$0.72	$0.64	$0.50
EPS - Diluted ($)	$0.72	$0.64	$0.49
Total Interest & Dividend Income ($mm)	$27.03	$28.19	$28.25
Net Interest Income ($mm)	$14.52	$15.06	$15.56
Total Non-Interest Income ($mm)	$2.03	$2.42	$2.71
Provision for Credit Losses ($mm)	($1.18)	$0.74	$0.42
Net Interest Margin (%)	2.83%	2.88%	2.98%
ROA (Annualized, %)	0.97%	0.86%	0.67%
ROE (Annualized, %)	11.12%	9.60%	7.28%
Efficiency Ratio (%)	66.25%	62.26%	70.73%
Cost of Total Deposits (Annualized, %)	2.14%	2.27%	2.22%

Year-over-Year (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
EPS - Basic ($)	$0.77	$0.50
EPS - Diluted ($)	$0.77	$0.49
Total Interest & Dividend Income ($mm)	$25.92	$28.25
Net Interest Income ($mm)	$13.95	$15.56
Total Non-Interest Income ($mm)	$2.22	$2.71
Provision for Credit Losses ($mm)	($1.74)	$0.42
Net Interest Margin (%)	2.73%	2.98%
ROA (Annualized, %)	1.02%	0.67%
ROE (Annualized, %)	12.60%	7.28%
Efficiency Ratio (%)	67.78%	70.73%

Balance Sheet and KPIs (End of Period)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total Assets ($mm)	$2,204.8	$2,234.6	$2,259.3	$2,232.3
Loans, Net ($mm)	$1,828.3	$1,855.1	$1,863.6	$1,865.2
Total Deposits ($mm)	$1,589.5	$1,648.1	$1,700.3	$1,706.1
Brokered Deposits ($mm)	$124.7	$128.5	$167.7	$178.3
Short-term Borrowings ($mm)	$145.9	$106.4	$78.3	$42.2
Long-term Borrowings ($mm)	$252.6	$257.1	$252.5	$254.6
NPL / Total Loans (%)	0.17%	0.36%	0.42%	0.47%
ACL / Total Loans (%)	0.62%	0.60%	0.62%	0.63%
ACL / NPL (%)	363.60%	165.60%	145.94%	133.06%
Net Charge-offs (Recoveries) ($000)	(209)	(396)	328	228
Book Value per Share ($)	$25.51	$26.13	$26.96	$27.16
Tangible Book Value per Share ($, Non-GAAP)	$23.29	$23.93	$24.77	$24.97

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share ($)	Q1 2025	$0.32 (Q4 2024 declared)	Declared $0.32; payable Mar 25, record Mar 11	Maintained

Note: Management did not provide formal quantitative guidance on revenue, margins, OpEx, OI&E, tax rate, or segment targets in Q4 materials .

Earnings Call Themes & Trends

No Q4 earnings call transcript was available in the document set; themes reflect management’s press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Net interest margin	NIM 2.83%; asset yields up; funding costs elevated	NIM 2.88%; continued yield improvement; deposit costs high	NIM 2.98%; asset yields +34 bps; funding cost stabilization	Improving sequentially
Deposit competition & mix	Shift to time deposits; brokered deposits used	Continued time/brokered growth; core deposits stable ~$1.2B	Time/brokered deposits up; core deposits stable; campaign focused on 5–24 month maturities	Persistent competition; mix shift sustained
Brokered deposits usage	+$41.3mm YoY; funding loan growth	+$61.0mm YoY to $167.7mm	+$53.6mm YoY to $178.3mm	Increasing reliance
Credit quality	NPL 0.36%; ACL/loans 0.60%; office exposure minimal	NPL 0.42%; ACL/loans 0.62%; office exposure minimal	NPL 0.47%; ACL/loans 0.63%; office exposure minimal ($14.1mm, none delinquent)	NPL trending higher; reserves ratio steady
Borrowings	Short-term down; replaced by brokered deposits	Short-term borrowings down q/q	Short-term borrowings down YoY to $42.2mm	Reduced reliance
Strategic/M&A	—	—	Announced acquisition by Northwest Bancshares; Q4 includes $735k merger expense; $581k after-tax merger expense	New strategic overhang/catalyst

Management Commentary

“Results for the three and twelve months ended December 31, 2024…were impacted by an increase in net interest income…as the cost of funds stabilized. The…periods…have been impacted by after-tax merger related expenses of $581,000…” .
“The net interest margin for the…three months…was 2.98%…driven by an increase in the rate collected on interest-earning assets of 34 bps…repricing of legacy assets coupled with portfolio growth.” .
“Brokered deposit balances increased $53.6 million to $178.3 million…utilized to supplement funding loan portfolio growth, while lowering the reliance on higher cost short-term borrowings.” .

Q&A Highlights

No Q4 earnings call transcript was available; therefore, Q&A highlights and any real-time guidance clarifications could not be assessed from primary sources [List: 0 earnings-call-transcript found for Q4 window].

Estimates Context

S&P Global consensus (EPS, revenue, target price, recommendation) for Q4 2024 was unavailable due to missing CIQ mapping for PWOD; we attempted retrieval and received an error. As a result, we cannot assess beat/miss vs Wall Street for Q4 2024 at this time [GetEstimates error].

Key Takeaways for Investors

Sequential NIM expansion to 2.98% and net interest income growth indicate underlying core spread improvement, a positive for 2025 earnings power if funding costs continue to stabilize .
EPS decline was largely driven by elevated non-interest expense including $735k merger costs; core EPS excluding special items was $0.58, highlighting cleaner underlying run-rate .
Deposit growth and mix shift (higher time/brokered) funded loan growth and reduced short-term borrowings, but keeps funding costs elevated versus 2023—watch for repricing/mix normalization as rates evolve .
Credit metrics show rising NPLs and lower ACL-to-NPL coverage; monitor watchlist migration and resolution pace as indirect auto and commercial portfolios season .
Dividend maintained at $0.32 with Q1 2025 declaration—signals capital stability despite merger and higher operating costs .
Merger with Northwest is a key near-term catalyst; stock strength into Q4 close suggests market is pricing potential synergies and strategic fit, but integration risk and expense drag could cap near-term EPS .
Near-term trading: sensitivity to deposit beta and credit updates; medium-term thesis hinges on sustained NIM gains, mix optimization away from brokered deposits, and clean integration execution post-close .

PENNS WOODS BANCORP INC (PWOD)·Q4 2024 Earnings Summary