Penns Woods Bancorp, Inc. Reports First Quarter 2008 Earnings

Jersey Shore, PA, April 18, 2008 – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported that net income from core operations (“operating earnings”), which excludes net securities gains, increased to $2,106,000 for the three months ended March 31, 2008 compared to $2,066,000 for the same period of 2007. Operating earnings per share for the three months ended March 31, 2008 increased to $0.54 basic and dilutive as compared to $0.53 basic and dilutive for the three months ended March 31, 2007. Continued strong credit quality, solid noninterest income of 17.2% of core revenue (interest income and noninterest income excluding net securities gains), a reduction in tax expense due to a shift in the investment portfolio to tax-exempt bonds, and additional bank-owned life insurance revenue positively impacted operating earnings for the three months ended March 31, 2008.

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Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Jersey Shore State Bank Honored by Pennsylvania Housing Finance Agency

Williamsport, PA, March 05, 2008 –Jersey Shore State Bank was recently recognized by the Pennsylvania Housing Finance Agency (PHFA) for its performance in 2007. The bank’s mortgage services department was ranked the third highest producer of PHFA loans in Pennsylvania, the top lender in PHFA HOMEstead Loans and the top PHFA construction lender. The Pennsylvania Housing Finance Agency is the Commonwealth’s leading provider of capital for affordable homes. Funding for the program comes from the sale of PHFA securities to investors across the nation. Jersey Shore State Bank has been involved in the PHFA loan program since the PHFA’s Homeownership Programs Division started in 1982. According to Jerry Seman, Vice President - Mortgage Officer, “Our success with the PHFA programs is because of our years of experience. I can honestly say we have some of the most experienced PHFA lenders in the state.” The mortgage services department of Jersey Shore State Bank has Mortgage Consultants located in bank branches in Lycoming, Clinton and Centre Counties. Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $628,138 million in assets. The bank has 13 offices in Centre, Lycoming and Clinton Counties. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, February 26, 2008 – Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a first quarter 2008 cash dividend of $0.46 per share. The dividend represents an increase of 4.5% over the first quarter 2007.

The dividend is payable March 25, 2008 to shareholders of record March 11, 2008.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Penns Woods Bancorp, Inc. Reports Increase in Fourth Quarter and Full-Year 2007 Operating Earnings

Jersey Shore, PA, January 22, 2008 – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported that net income from core operations (“operating earnings”), which excludes net security gains and losses, increased to $2,383,000 and $8,913,000 for the three and twelve months ended December 31, 2007 compared to $2,100,000 and $8,539,000 for the same periods of 2006. Operating earnings per share for the three months ended December 31, 2007 increased 13.0% or $0.07 to $0.61 basic and dilutive compared to the three months ended December 31, 2006. Operating earnings for the fourth quarter of 2007 represent a $0.01 basic and dilutive increase from the previous three month period as core earnings continued to build upon the $0.05 increase from the second to third quarters of 2007. In addition, the $0.01 growth in operating earnings per share represents the fourth consecutive quarter of increases. Operating earnings for the twelve months ended December 31, 2007 were positively impacted by continued strong credit quality, which has led to a reduction in the provision for loan losses, strong noninterest income of 17.3% of core revenue (interest income and noninterest income excluding net security gains and losses), and a reduction in tax expense due to a shift in the investment portfolio to tax-exempt bonds and additional federal tax credits related to low income housing partnerships. The impact of these items resulted in basic and dilutive operating earnings increasing 5.5% to $2.29 for the twelve months ended December 31, 2007 compared to $2.17 for the twelve months ended December 31, 2006.

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Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

New Director Appointed

Williamsport, PA, November 28, 2007 – Michael Hawbaker has been appointed to the boards of directors of Jersey Shore State Bank and the bank’s holding company, Penns Woods Bancorp, Inc., according to Ronald A. Walko, President and CEO.

A native of Centre County, Hawbaker is an Executive Vice President and an owner at Glenn O. Hawbaker, Inc.

Active in industry associations he is a member of the National Stone, Sand and Gravel Association, The Pennsylvania Aggregate and Concrete Association, and the SEDA-COG Joint Rail Authority.

According to Walko, “With over 20 years of business experience, Michael will be a positive addition to our boards; he will add a fresh perspective to our business.”

Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $613,329,000 in assets, with 13 offices in Centre, Lycoming and Clinton Counties. Investment and insurance products are also offered through the bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

Contact:

Lori Strimple (570) 320-2056

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, November 27, 2007 – Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a fourth quarter 2007 cash dividend of $0.46 per share. The dividend represents an increase of 4.5% over the fourth quarter 2006, while the year to date 2007 dividends declared of $1.79 represent a $0.06 increase as compared to the same period of 2006.

The dividend is payable December 20, 2007 to shareholders of record December 10, 2007.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Penns Woods Bancorp, Inc. Reports Third Quarter 2007 Earnings

Jersey Shore, PA – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and nine months ended September 30, 2007 of $2,322,000 and $6,938,000 as compared to $2,464,000 and $7,353,000 for the same periods of 2006.  Basic and dilutive earnings per share for the three months ended September 30, 2007 were $0.60 as compared to $0.63 for the three months ended September 30, 2006.  The nine months ended September 30, 2007 had basic and diluted earnings per share of $1.78 as compared to $1.87 for the nine months ended September 30, 2006.  Return on average assets and return on average equity were 1.57% and 13.21% for the three months ended September 30, 2007 as compared to 1.71% and 13.41% for the corresponding period of 2006.  Earnings for the nine months ended September 30, 2007 correlate to a return on average assets and return on average equity of 1.57% and 12.63% as compared to 1.71% and 13.20% for the nine months ended September 30, 2006. 

Net income from core operations (“operating earnings”), which excludes net security gains, increased to $2,322,000 and $6,529,000 for the three and nine months ended September 30, 2007 as compared to operating earnings of $2,094,000 and $6,439,000 for the same periods of 2006.  Operating earnings per share for the three months ended September 30, 2007 increased 13.2% or $0.07 to $0.60 basic and dilutive as compared to the three months ended September 30, 2006.  Operating earnings for the third quarter of 2007 represent a $0.05 basic and dilutive increase from the previous three month period as core earnings continued to build upon the $0.02 increase from the first to second quarters of 2007. Operating earnings for the nine months ended September 30, 2007 were positively impacted by continued strong credit quality, which has led to a reduction in the provision for loan losses, strong noninterest income of 17.3% of core revenue (interest income and noninterest income excluding gains), and a reduction in tax expense due to a shift in the investment portfolio to tax-exempt bonds and additional low incoming housing federal tax credits.  The impact of these items resulted in basic and dilutive operating earnings increasing 3.1% to $1.68 as compared to $1.63 for the nine months ended September 30, 2006.

The net interest margin for the three and nine months ended September 30, 2007 was 3.98% and 3.96% as compared to 4.00% and 4.06% for the corresponding periods of 2006, and has increased slightly as compared to the 3.95% net interest margin for the three months ended June 30, 2007.  The decrease in the net interest margin was due to the cost of interest bearing liabilities continuing to increase at a rate greater than the increase in the yield on earning assets over the past twelve months.  The negative impact of the disparity between the asset yield increases and the liability rate increases, however, declined for the three months ended September 30, 2007 as compared to the same period of 2006.   The increase in the cost of interest bearing liabilities was driven primarily by the cost of time deposits increasing 48 basis points (“bp”) for the three months ended September 30, 2007 and 78 bp for the nine month period as compared to the previous year.  The increase in cost of time deposits was impacted by the Federal Open Market Committee rate increases during 2006 of 100 bp, utilization of brokered deposits, and our strategic decision to gather time deposits as part of marketing campaigns associated with a branch opening and branch anniversaries in 2006 and 2007.  Loan growth and a shift in the investment portfolio toward tax-exempt bonds paved the way for the increase in yield on earning assets of 21 bp and 25 bp for the three and nine months periods ended September 2007 as compared to 2006. 

“The recent months have generally seen the banking industry cast in a negative light due to the fallout from questionable mortgage lending practices.  We as a community bank take pride in providing our customers with secure loans that fit their needs, financial profile, and take their personal goals into consideration.   To that extent, we are not aware of any sub prime loans within our loan or investment securities portfolios,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.  “Our continued emphasis to not compromise our credit standards in order to foster loan growth has produced a nonperforming loans to total loans ratio of 0.28% at September 30, 2007 and annualized net loan charge-offs to average loans of 0.06% for the nine month period.  The continued low level of nonperforming loans and charge-offs allowed for the provision for loan losses to be reduced to $10,000 for the three months ended September 30, 2007 as compared to $89,000 for the same period of 2006, while maintaining a sound allowance for loan losses to non-performing loans of in excess of 400%,” added Mr. Walko. 

Total assets increased $26,577,000 to $613,329,000 at September 30, 2007 as compared to September 30, 2006.  Continued emphasis on originating quality loans has led to net growth in the loan portfolio of $1,112,000 since September 30, 2006 as loan demand has softened and credit standards have remained constant.  Total deposits have increased to $404,854,000 at September 30, 2007 as compared to $401,722,000 at September 30, 2006 as noninterest-bearing deposits increased $3,578,000 or 5.2% over the same time period.  Growth in the investment portfolio of $20,268,000 from September 30, 2006 to September 30, 2007 is primarily the result of a leverage strategy that was initiated during the latter part of 2007.  “This strategy in conjunction with our stock repurchase plan and strong dividend yield provide the tools necessary to utilize our strong capital position to maximize shareholder value,” commented Mr. Walko.

Shareholders’ equity decreased $3,173,000 to $71,552,000 at September 30, 2007 as accumulated comprehensive income decreased $4,114,000, and $1,518,000 in treasury stock was strategically purchased as part of the previously announced stock buyback plan, while net income outpaced dividends paid.  The decrease in accumulated comprehensive income is the result of a decrease in market value, or net unrealized gains, of the investment portfolio at September 30, 2007 as compared to September 30, 2006, and the net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan.  The current level of shareholders’ equity equates to a book value per share of $18.46 at September 30, 2007 as compared to $19.08 at September 30, 2006 and equity to asset ratio of 11.67% at September 30, 2007.  Book value per share, excluding accumulated comprehensive income, was $19.08 at September 30, 2007 as compared to $18.65 at September 30, 2006.  During the three and nine months ended September 30, 2007 cash dividends of $0.45 and $1.33 per share were paid to shareholders. 

“Our goals of providing a healthy dividend yield in excess of four percent and conducting stock repurchases on the open market remains steadfast.  The current dividend yield of approximately 5.5% coupled with the purchase of 26,030 shares on the open market during the first nine months of 2007 illustrates our commitment to building shareholder value.  The strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko.  The range of closing prices for Penns Woods Bancorp, Inc. stock was between $30.80 and $35.00 during the three months ended September 30, 2007 and between $30.80 and $37.75 during the nine months ended September 30, 2007.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, and Centre Counties.  Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP").  Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature. Because certain of these items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein:  (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.

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Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, August 28, 2007 – Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a third quarter 2007 cash dividend of $0.45 per share. The dividend represents an increase of 2% over the third quarter 2006, while the year to date 2007 dividends declared of $1.33 represent a $0.04 increase as compared to the same period of 2006.

The dividend is payable September 28, 2007 to shareholders of record September 14, 2007.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Penns Woods Bancorp, Inc. Reports Second Quarter 2007 Earnings

Jersey Shore, PA, July 19, 2007 – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and six months ended June 30, 2007 of $2,335,000 and $4,616,000 compared to $2,434,000 and $4,889,000 for the same periods of 2006. Basic and dilutive earnings per share for the three months ended June 30, 2007 were $0.60 as compared to $0.62 for the three months ended June 30, 2006. The six months ended June 30, 2007 had basic and diluted earnings per share of $1.19 as compared to $1.24 for the six months ended June 30, 2006. Return on average assets and return on average equity were 1.58% and 12.57% for the three months ended June 30, 2007 as compared to 1.70% and 13.34% for the corresponding period of 2006. Earnings for the six months ended June 30, 2007 correlate to a return on average assets and return on average equity of 1.57% and 12.35% as compared to 1.71% and 13.12% for the six months ended June 30, 2006.

Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,142,000 and $4,207,000 for the three and six months ended June 30, 2007 as compared to operating earnings of $2,259,000 and $4,345,000 for the same periods of 2006. Operating earnings per share for the three months ended June 30, 2007 increased $0.02 to $0.55 basic and dilutive from the previous three month period. The six months ended June 30, 2007 operating earnings have been impacted by a decline in the net interest margin, increased operating costs due in part to the opening of our Montoursville branch in August 2006, and by operational growth that occurred throughout 2006. The impact of these items resulted in basic and dilutive operating earnings of $1.08 as compared to $1.10 for the six months ended June 30, 2006.

The net interest margin for the three and six months ended June 30, 2007 was 3.95% compared to 4.12% and 4.10% for the corresponding periods of 2006, and has remained substantially unchanged compared to the net interest margin for the three months ended March 31, 2007. The decrease in the net interest margin was due to the cost of interest bearing liabilities increasing at approximately twice the rate of the increase in the yield on earning assets. The increase in the cost of interest bearing liabilities was driven primarily by the cost of time deposits increasing 93 basis points (“bp”) for the three months ended June 30, 2007 and 96 bp for the six month period as compared to the previous year. The increase in cost of time deposits was impacted by the Federal Open Market Committee rate increases during 2006 of 100 bp and our strategic decision to gather time deposits and utilize the deposits to reduce the level of higher cost short-term Federal Home Loan Bank advances.

“The second quarter of 2007 was a time of progress for the company. During May, the drive-thru expansion and installation of a drive-up ATM at our Main Street, Jersey Shore branch was completed. Feedback from customers regarding the project has been positive and the new ATM has quickly become one of the most used within our network. Our merchant card program continues to gather momentum with June being one of the most successful months in terms of new customer enrollment. Our continued strategic decision to not compromise our credit standards to foster loan growth has produced a nonperforming loans to total loans ratio of 0.31% at June 30, 2007 and net loan charge-offs to average loans of 0.05% for the three month period. The low level of nonperforming loans and charge-offs allowed for the provision for loan losses to be reduced to $10,000 for the three months ended June 30, 2007 as compared to $198,000 for the same period of 2006. Funding the balance sheet in the least costly manner continues to be a challenge that we face each day. We continue to stay the course that we previously set to shorten liabilities and to attract 8 to 12 month time deposits to replace higher cost short-term Federal Home Loan Bank advances. The continued strength of the loan portfolio, liability repositioning, and other strategic actions resulted in strong second quarter 2007 financial ratios. The quarter saw a halt in a declining interest margin, a $0.02 improvement over the first quarter in earnings per share from operating earnings, and increases in return on assets and return on equity,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.

Total assets increased $10,267,000 to $586,572,000 at June 30, 2007 as compared to June 30, 2006. Continued emphasis on originating quality loans has led to net growth in the loan portfolio of $9,439,000, or 2.8% since June 30, 2006. Total deposits increased 7.8% to $405,903,000 at June 30, 2007 as compared to June 30, 2006 due to short-term certificates of deposit growth and purchased brokered deposits. These deposits were used to fund the loan portfolio and to repay $19,066,000 of higher cost borrowings.

Shareholders’ equity decreased $1,912,000 to $69,720,000 at June 30, 2007 as accumulated comprehensive income decreased $2,761,000, and $1,761,000 in treasury stock was strategically purchased as part of the previously announced stock buyback plan, while net income outpaced dividends paid. The decrease in accumulated comprehensive income is the result of a decrease in market value, or net unrealized gains, of the investment portfolio at June 30, 2007 as compared to June 30, 2006, and the net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan. The current level of shareholders’ equity equates to a book value per share of $17.93 at June 30, 2007 as compared to $18.22 at June 30, 2006 and equity to asset ratio of 11.89% at June 30, 2007. Book value per share, excluding accumulated comprehensive income, was $18.97 at June 30, 2007 as compared to $18.54 at June 30, 2006. During the three and six months ended June 30, 2007 cash dividends of $0.44 and $0.88 per share were paid to shareholders.

“Our commitment to providing a healthy dividend yield in excess of four percent and to conduct stock repurchases on the open market remains steadfast. The current dividend yield of approximately 5% coupled with the purchase of 15,030 shares on the open market during the first half of 2007 illustrate our commitment to building shareholder value. The strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. stock was between $33.86 and $35.00 during the three months ended June 30, 2007 and between $33.86 and $37.75 during the six months ended June 30, 2007.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

Click here for the complete press release with financial statements.

Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, May 22, 2007 – Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a second quarter 2007 cash dividend of $0.44 per share. The dividend represents an increase of 2% over the second quarter 2006. The dividend is payable June 25, 2007 to shareholders of record June 8, 2007.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Jersey Shore State Bank Honored by Pennsylvania Housing Finance Agency

Williamsport, PA, May 21, 2007 – Jersey Shore State Bank was recently recognized by the Pennsylvania Housing Finance Agency (PHFA) for its performance in 2006. The bank’s mortgage services department was ranked the fourth highest producer of PHFA loans in Pennsylvania, the top lender in PHFA HOMEstead Loans and the top PHFA construction lender. The bank was also recognized as a Silver Partner for 25 years of service.

The Pennsylvania Housing Finance Agency is the Commonwealth’s leading provider of capital for affordable homes. Funding for the program comes from the sale of PHFA securities to investors across the nation.

Jersey Shore State Bank has been involved in the PHFA loan program since the PHFA’s Homeownership Programs Division started in 1982. According to Jerry Seman, Vice President - Mortgage Officer, “Our success with the PHFA programs is because of our years of experience. I can honestly say we have some of the most experienced PHFA lenders in the state.” The mortgage services department of Jersey Shore State Bank has Mortgage Consultants located in bank branches in Lycoming, Clinton and Centre Counties.

Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $586,591 million in assets. The bank has 13 offices in Centre, Lycoming and Clinton Counties. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

Penns Woods Bancorp, Inc. Holds Annual Shareholders’ Meeting

Williamsport, PA, April 26, 2007 – Penns Woods Bancorp, Inc., (NASDAQ: PWOD) the holding company of Jersey Shore State Bank, recently held its annual shareholders meeting. Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc. and Jersey Shore State Bank presided over the meeting.

Brian L. Knepp Vice President - Finance; Thomas Donofrio, Executive Vice President/Chief Administrative Officer; Ann M. Riles, Senior Vice President/Chief Credit Officer; and Paul R. Mamolen, Chief Operating Officer and Senior Vice President of The Comprehensive Financial Group presented informational reports discussing the company's performance during 2006. President Walko stated in his address to the shareholders “I am very proud the way our employees have stepped up to help the company meet the growing regulatory demands that have been placed, not only on our company, but the entire banking industry.”

The following directors were re-elected to serve three-year terms for the corporation: Michael J. Casale, Jr., R. Edward Nestlerode, Jr., William H. Rockey, and Ronald A. Walko. S.R. Snodgrass, A.C. was ratified as the independent outside auditors for the company.

Penns Woods Bancorp, Inc. is a bank holding company with $586 million in assets. Investment and insurance products are also offered through Jersey Shore State Bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

Penns Woods Bancorp, Inc. Reports First Quarter 2007 Earnings

Jersey Shore, PA, April 20, 2007 – Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three months ended March 31, 2007 of $2,281,000 compared to $2,455,000 for the same period of 2006.  Basic and dilutive earnings per share for the three months ended March 31, 2007 were $0.59 as compared to $0.62 basic and dilutive for the three months ended March 31, 2006.  Return on average assets and return on average equity were 1.56% and 12.13% for the three months ended March 31, 2007 as compared to 1.72% and 13.24% for the corresponding period of 2006. 

Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,066,000 for the three months ended March 31, 2007 as compared to operating earnings of $2,086,000 for the same period of 2006.  Operating earnings provided $0.53 per share basic and dilutive for each of the three month periods ended March 31, 2007 and 2006, respectively.  Comparatively, earnings in 2007 have been impacted by a decline in the net interest margin, increased operating costs due in part to the opening of our Montoursville branch in August 2006, and by operational growth that occurred through out 2006. 

The net interest margin for the three months ended March 31, 2007 was 3.95% compared to 4.08% for the corresponding period of 2006.  The decrease in the net interest margin was due to the cost of interest bearing liabilities increasing at approximately one and a half times the rate of the increase in the yield on earning assets.   The increase in the cost of interest bearing liabilities was driven primarily by the Federal Open Market Committee rate increases during 2006 totaling 100 basis points (“bp”), which led to the cost of time deposits and short-term borrowings increasing 98 bp and 84 bp, respectively, for the three months ended March 31, 2007 as compared to the same period of 2006.

“2007 is emerging as another challenging year due to the continued flat to inverted yield curve, continued margin compression, and increased competition ranging from banks to brokerage houses.  As is our philosophy, we will tackle each challenge head on while following the Penns Woods way of doing business, great customer service and continued strong credit quality.   Customer service will be improved during the month of May at our Main Street, Jersey Shore branch as the drive-thru is expanded, retooled, and a drive-up ATM is added to the site.  Our strategic decision to not compromise our credit standards in order to increase loans outstanding has led to nonperforming loans to total loans of 0.28% at March 31, 2007 and net loan charge-offs to average loans of 0.03% for the three month period.  Due to the low level of nonperforming loans and charge-offs we were able to reduce our provision for loan losses to $40,000 for the three months ended March 31, 2007 as compared to $198,000 for the same period of 2006.  We have also utilized short-term certificates of deposit and brokered deposits to provide the funding necessary to reduce the amount of short-term borrowings on the balance sheet.  In addition we continue to utilize our asset liability tools to maintain and enhance the yield on earning assets and to limit the effect of rate pressures on the cost of interest-bearing liabilities.  This has led to a small realignment in the investment portfolio, replacement of long-term borrowings during the first quarter, and the acquisition of approximately $20 million in local government entity funds during the month of April.  In addition, the time deposits acquired during 2006 as part of the Montoursville branch grand opening and the Atherton Street, State College, branch one year anniversary are now beginning to mature and we expect them to  roll to a lower interest rate,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.

Total assets increased $7,194,000 to $586,591,000 at March 31, 2007 as compared to March 31, 2006.  Continued emphasis on originating quality loans has led to net growth in the loan portfolio of $11,195,000, or 3.3%, since March 31, 2006.  The majority of the loan growth has occurred in the commercial real estate portion of the portfolio.  The available for sale investment portfolio was strategically reduced $3,362,000 as the cash flow from the portfolio assisted in meeting the funding needs of new higher yielding commercial loans.  Total deposits increased 4.8% to $384,849,000 at March 31, 2007 as compared to March 31, 2006, as relationship based deposit products introduced in 2006 gained footing, short-term certificates of deposit were gathered, and brokered deposits were utilized.  The funding generated by the deposit gathering initiatives were utilized to assist in funding the loan portfolio and resulted in total borrowings decreasing $9,721,000 from March 31, 2006 to March 31, 2007. 

Shareholders’ equity increased $367,000 to $74,182,000 at March 31, 2007 as net income outpaced dividends paid, accumulated comprehensive income decreased $359,000, and $1,977,000 in treasury stock was strategically purchased as part of the previously announced stock buyback plan.  The decrease in accumulated comprehensive income is the result of an increase in market value, or net unrealized gains, of the investment portfolio at March 31, 2007 as compared to March 31, 2006, offset by the net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan.  The current level of shareholders’ equity equates to a book value per share of $19.06 at March 31, 2007 as compared to $18.73 at March 31, 2006 and equity to asset ratio of 12.65% at March 31, 2007.  During the three months ended March 31, 2007 cash dividends of $0.44 per share were paid to shareholders.  The dividends represented a 5% increase or $0.02 per share over the dividends paid during the comparable period of 2006. 

“We remain committed to building shareholder value by providing a healthy dividend yield in excess of four percent and by conducting stock repurchases on the open market.  The dividend paid during 2007 not only represented a 5% increase over 2006, but also met our continued objective to provide a cash dividend resulting in a return exceeding four percent.  During the first three months of 2007 we purchased 10,030 shares on the open market as part of our stock repurchase program.  The strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko.  The range of closing prices for Penns Woods Bancorp, Inc. stock was between $35.00 and $37.75 during the three months ended March 31, 2007.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, and Centre Counties.  Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP").  Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature. Because certain of these items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein:  (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.

Click here for the complete press release with financial statements.

Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, February 27, 2007 – Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a first quarter 2007 cash dividend of $0.44 per share. The dividend represents an increase of 5% over the first quarter 2006. The dividend is payable March 27, 2007 to shareholders of record March 13, 2007.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

USDA Presents Certificate of Appreciation to Local Bankers

Williamsport, PA, February 15, 2007 – William Crawford, Loan Specialist for the USDA Rural Development, presented Certificates of Appreciation to mortgage consultants Brenda Bryerton, Barry Peters and Elizabeth Gretzler from the State College branch office, Gail Rice from the Lock Haven branch office and Kim Walker from the Jersey Shore branch office for their participation in processing guaranteed loans to applicants who purchased homes using the USDA Rural Development’s Guaranteed Rural Housing Loan (GRH) program. Jersey Shore State Bank was Rural Development’s most productive partner in Pennsylvania’s GRH Program during fiscal year 2006. They originated 131 quality loans.

Overall, throughout Pennsylvania, 730 families purchased homes in fiscal year 2006, through this USDA Rural Development housing program. The program targets families in the low and moderate income levels. The program’s most desirable feature is that no down payment is required and permits financing up to 100% of the appraisal plus the 2% guarantee fee. Other features of the GRH program include lower monthly payments and no private mortgage insurance requirement. There is no cap on the total mortgage amount, although the payments must be within the applicant’s repayment ability.

USDA, Rural Development serves as the lead federal agency for Rural Development needs by offering financial and technical assistance to individuals, businesses, and communities. USDA Rural Development programs include funding for day care centers, fire trucks, and other community facility projects; the purchase, construction or repair of homes; loans and guarantees to rural businesses to save or create jobs; and loans and grants for water and sewer utility projects.

Penns Woods Bancorp, Inc. Reports Fourth Quarter 2006 and Full-Year Earnings

Jersey Shore, PA, January 22, 2007 -Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and twelve months ended December 31, 2006 of $2,294,000 and $9,647,000 compared to $2,478,000 and $10,901,000 for the same periods of 2005. Basic and dilutive earnings per share for the three months ended December 31, 2006 were $0.59 as compared to $0.63 basic and $0.62 dilutive for the three months ended December 31, 2005. The twelve months ended December 31, 2006 had basic and diluted earnings per share of $2.45 as compared to $2.75 basic and $2.74 dilutive for the twelve months ended December 31, 2005. Return on average assets and return on average equity were 1.56% and 12.18% for the three months ended December 31, 2006 as compared to 1.75% and 13.31% for the corresponding period of 2005. Earnings for the twelve months ended December 31, 2006 correlate to a return on average assets and return on average equity of 1.67% and 12.93% as compared to 1.97% and 14.54% for the twelve months ended December 31, 2005.

Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,100,000 and $8,539,000 for the three and twelve months ended December 31, 2006 as compared to operating earnings of $2,256,000 and $9,456,000 for the same periods of 2005. Comparatively, earnings in 2006 have been impacted by a decline in the net interest margin, increased operating costs due in part to the opening of our North Atherton Street branch in State College in May 2005 and the opening of our Montoursville branch in August 2006, and by operational growth. In addition, operating earnings for the twelve months ended December 31, 2005 were impacted by nonrecurring additional bank-owned life insurance revenue of $196,000 related to a death benefit.

The net interest margin for the three and twelve months ended December 31, 2006 was 3.97% and 4.06%, compared to 4.20% and 4.29% for the corresponding periods of 2005. The decrease in the net interest margin for the three and twelve month periods was due to the cost of interest bearing liabilities increasing at approximately twice the rate of the increase in the yield on earning assets. The increase in the cost of interest bearing liabilities was driven primarily by the Federal Open Market Committee rate increases over the past two years, which led to the cost of time deposits and short-term borrowings increasing 117 basis points (“bp”) and 86 bp, respectively, for the last three months of 2006 and 109 bp and 144 bp, respectively, for the entire year. “2006 was a challenging year due to the continued flat to inverted yield curve, continued margin compression, and increased competition ranging from banks to brokerage houses. We tackled each challenge head on while following the Penns Woods way of doing business, great customer service and continued strong credit quality. Customer service was improved by the addition of a branch in Montoursville and placement of several cash dispenser units within our market area. We made a strategic decision to not compromise our credit standards in order to increase loans outstanding or to increase the yield on loans to combat the rate pressure on interest bearing liabilities. Maintaining our credit quality led to net loans increasing a healthy $21.4 million during 2006 while credit quality remained strong with nonperforming loans to total loans of 0.14% at December 31, 2006 and net loan charge-offs to average loans of 0.04% for the year. We have also utilized short-term certificates of deposit and brokered deposits to provide the funding necessary to reduce the amount of short-term borrowings on the balance sheet,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.

Total assets increased $23,617,000 to $592,285,000 at December 31, 2006 as compared to December 31, 2005. A continued emphasis on quality loan origination has led to net growth in the loan portfolio of $21,440,000, or 6.4%, since December 31, 2005. The majority of the loan growth has occurred in the commercial real estate portion of the portfolio. The available for sale investment portfolio was strategically reduced $1,818,000 as the cash flow from the portfolio assisted in meeting the funding needs of new higher yielding commercial loans. In addition, a significant investment in the construction of low-income housing units was undertaken in 2006 as part of the company’s strategic commitment to the communities where it provides banking services. Total deposits increased 12.1% to $395,191,000 at December 31, 2006 as compared to December 31, 2005, as new relationship based deposit products were launched, short-term certificate of deposits were gathered, and brokered deposits were utilized. The funding generated by the deposit gathering initiatives resulted in short-term borrowings decreasing $19,306,000 from December 31 2005 to December 31, 2006.

Shareholders’ equity increased $675,000 to $74,594,000 at December 31, 2006 as net income outpaced dividends paid, accumulated comprehensive income increased $710,000, and $2,929,000 in treasury stock was strategically purchased as part of the previously announced stock buyback plan. The increase in accumulated comprehensive income is the result of an increase in market value, or net unrealized gains, of the investment portfolio at December 31, 2006 as compared to December 31, 2005, offset by the net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan. The current level of shareholders’ equity equates to a book value per share of $19.12 at December 31, 2006 as compared to $18.59 at December 31, 2005 and an equity to asset ratio of 12.59% at December 31, 2006. During the twelve months ended December 31, 2006 cash dividends of $1.73 per share were paid to shareholders. The dividends represented an 11% increase or $0.17 per share over the dividends paid during the comparable period of 2005. “We remain committed to building shareholder value by providing a healthy dividend yield in excess of four percent and by conducting stock repurchases on the open market. The dividends paid during 2006 have not only met our continued objective to provide a cash dividend resulting in a return exceeding four percent, but also represent an increase of 11% over 2005. We have also increased the frequency of our stock repurchases on the open market. During 2006 we purchased 76,400 shares on the open market as compared to 14,000 during 2005. The continued strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. stock was between $36.20 and $38.59 during the three months ended December 31, 2006 and between $36.20 and $39.50 during the twelve months ended December 31, 2006.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature. Because certain of these items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

Click here for the complete press release with financial statements.

Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

Local Bank Announces New Online Security Features

Williamsport, PA, January 17, 2007 William Mauck, Vice President-Operations, recently announced that Jersey Shore State Bank has begun the process of implementing a new online security feature called multi-factor authentication (MFA).

MFA is an online security process that will allow the bank to minimize the potential for fraud and help protect customer’s personal financial information. According to VP-Mauck, “security of our customer’s personal information is the top priority for the bank and MFA is another process that will help assure our customers that their information is secure when using our internet banking product.”

For additional information on the bank’s MFA process click here.

Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $586,752,000 in assets, with 13 offices in Centre, Lycoming and Clinton Counties. Investment and insurance products are also offered through the bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, November 28, 2006 Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a fourth quarter 2006 cash dividend of $0.44 per share. The dividend represents an increase of 7% over the fourth quarter 2005. The dividend is payable December 22, 2006 to shareholders of record December 8, 2006. The year to date 2006 dividends declared of $1.73 represent a $0.17 or 11% increase as compared to the same period of 2005.

"The fourth quarter dividend maintains our commitment to increasing shareholder value by paying a dividend yielding in excess of four percent. The dividend yield in conjunction with the utilization of the stock repurchase program will assist the Board of Directors and management in maintaining our strategic course of increasing shareholder value,” commented Mr. Walko.

Previous press releases and additional information can be obtained from the company’s website at www.jssb.com.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Penns Woods Bancorp, Inc. Reports Third Quarter 2006 Earnings

Jersey Shore, PA, October 19, 2006 -Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and nine months ended September 30, 2006 of $2,464,000 and $7,353,000 compared to $2,948,000 and $8,423,000 for the same periods of 2005. Basic and dilutive earnings per share for the three months ended September 30, 2006 were $0.63 as compared to $0.74 for the three months ended September 30, 2005. The nine months ended September 30, 2006 had basic and diluted earnings per share of $1.87 as compared to $2.12 for the nine months ended September 30, 2005. Return on average assets and return on average equity were 1.70% and 13.41% for the three months ended September 30, 2006 as compared to 2.12% and 16.54% for the corresponding periods of 2005. Earnings for the nine months ended September 30, 2006 correlate to a return on average assets and return on average equity of 1.71% and 13.20% as compared to 2.05% and 14.94% for the nine months ended September 30, 2005.

Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,094,000 and $6,439,000 for the three and nine months ended September 30, 2006 as compared to operating earnings of $2,581,000 and $7,199,000 for the same periods of 2005. Comparatively, earnings in 2006 have been impacted by a decline in the net interest margin, increased operating costs due in part to the opening of our North Atherton Street branch in State College in May 2005 and the opening of our Montoursville branch in August 2006, and by operational growth. In addition, operating earnings for the three and nine months ended September 30, 2005 were impacted by additional bank-owned life insurance revenue of $196,000.

The net interest margin for the three and nine months ended September 30, 2006 was 4.00% and 4.06%, compared to 4.27% and 4.32% for the corresponding periods of 2005. The decrease in the net interest margin for the three and nine month periods was due to the cost of interest bearing liabilities increasing at approximately twice the rate of the increase in the yield on earning assets. The increase in the cost of interest bearing liabilities was driven by the Federal Open Market Committee rate increases over the past year, which led to the cost of time deposits and short-term borrowings increasing 115 bp and 153 bp, respectively, for the three month period of 2006 and 100 bp and 174 bp, respectively, for the nine month period of 2006.

“The continuing margin compression has led us to develop new strategies and products to combat the margin compression and to ultimately enhance core earnings and shareholder value. As part of our deposit gathering efforts, we have introduced relationship deposit products to encourage and reward those customers who utilize the company for all their banking needs. We have also utilized short-term certificates of deposits and brokered deposits to provide the funding necessary to reduce the amount of short-term borrowings on the balance sheet. During August we opened our Montoursville branch and began to witness the fruits of our labor as the amount of deposits collected and transactions processed exceeded our expectations. We will continue to develop new products and to shift the balance sheet structure in order to maintain and build core earnings and shareholder value,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.

Total assets increased $16,333,000 to $586,752,000 at September 30, 2006 as compared to September 30, 2005. A continued emphasis on quality loan origination has led to net growth in the loan portfolio of $25,352,000, or 7.7%, since September 30, 2005. The majority of the loan growth has occurred in the commercial real estate portion of the portfolio. The available for sale investment portfolio was strategically reduced $7,555,000 to meet the funding needs of new higher yielding commercial loans. In addition, a significant investment in the construction of low-income housing units was undertaken during the third quarter of 2005 and into 2006 as part of the company’s strategic commitment to the communities where it provides banking services. Total deposits increased 10.7% to $401,722,000 at September 30, 2006 as compared to September 30, 2005, as new relationship based deposit products were launched, short-term certificate of deposits were gathered, and brokered deposits were utilized. The funding generated by the deposit gathering initiatives resulted in short-term borrowings decreasing $22,384,000 from September 30 2005 to September 30, 2006.

Shareholders’ equity increased $235,000 to $74,725,000 at September 30, 2006 as net income outpaced dividends paid, accumulated comprehensive income decreased $240,000, and $2,734,000 in treasury stock was strategically purchased as part of the previously announced stock buyback plan. The decrease in accumulated comprehensive income is the result of a temporary decline in market value, or net unrealized gains, of the investment portfolio at September 30, 2006 as compared to September 30, 2005. The current level of shareholders’ equity equates to a book value per share of $19.08 as compared to $18.69 at September 30, 2005 and an equity to asset ratio of 12.74% at September 30, 2006. During the nine months ended September 30, 2006 dividends of $1.29 per share were paid to shareholders. The dividends represented a 12% increase or $0.14 per share over the dividends paid during the comparable period of 2005.

“We remain committed to building shareholder value by providing a dividend yield in excess of four percent and by conducting stock repurchases on the open market. The dividends paid to date during 2006 have not only met our continued objective to provide a cash dividend resulting in a return exceeding four percent, but also represent a 12% increase over the same period of 2005. We have also increased the frequency of our stock repurchases on the open market. Through the first nine months of 2006 we have purchased 60,000 shares on the open market as compared to 14,000 during the entire year of 2005. The continued strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. “PWOD” stock was between $37.02 and $38.48 during the three months ended September 30, 2006 and between $36.50 and $39.50 during the nine months ended September 30, 2006.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by PWOD, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature. Because certain of these items and their impact on PWOD's performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of PWOD's core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact. PWOD cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of PWOD herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on PWOD’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

Click here for the complete press release with financial statements.

Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

Jersey Shore State Bank Presents Lycoming County United Way with Annual Donation


Williamsport, PA, September 6, 2006 - Ronald A. Walko, Jersey Shore State Bank President and CEO (right) and Michelle Lawson, Montoursville Branch Manger, (center) present Scott Lowery, Executive Director of the Lycoming County United Way, a donation for the United Way’s annual campaign. The presentation was made during the grand opening celebration of the bank’s newest office at 820 Broad Street, Montoursville

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, August 22, 2006 Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a third quarter 2006 cash dividend of $0.44 per share. The dividend represents an increase of 13% over the third quarter 2005 dividend and a $0.01 increase over the second quarter 2006 dividend. The dividend is payable September 26, 2006 to shareholders of record September 12, 2006. The year to date 2006 dividends declared of $1.29 represent a $0.14 increase as compared to the same period of 2005.

"We continue to pay a dividend yielding in excess of four percent as part of our commitment to increasing shareholder value. The dividend yield coupled with the stock repurchase program will assist the Board of Directors and management in maintaining our strategic course of increasing shareholder value,” commented Mr. Walko. Previous press releases and additional information can be obtained from the company’s website at www.jssb.com.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Penns Wood Bancorp Inc. Highly Ranked By Publication

Williamsport, PA, August 15, 2006 Reported in the USBanker for July 2006, Penns Wood Bancorp, Inc., holding company of Jersey Shore State Bank, ranked 24 in the Top 200 Community Banks for a 3-year average return on equity (ROE). The company had a ROE of 15.54 as of January 31. Once a year, USBanker provides a report of the top 200 publicly traded Community Banks based on ROE.

Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $576,305,000 in assets as of June 30, 2006. Jersey Shore State Bank has 13 offices in Centre, Lycoming, and Clinton counties. Investment and insurance products are also offered through the bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades in the NASDAQ National Market under the symbol PWOD.

Penns Woods Bancorp, Inc. Reports Second Quarter 2006 Earnings

Jersey Shore, PA, July 20, 2006 Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three and six months ended June 30, 2006 of $2,434,000 and $4,889,000 compared to $2,760,000 and $5,475,000 for the same periods of 2005. Basic and dilutive earnings per share for the three months ended June 30, 2006 were $0.63 as compared to $0.70 for the three months ended June 30, 2005. The six months ended June 30, 2006 had basic and diluted earnings per share of $1.25 as compared to $1.38 for the six months ended June 30, 2005. Return on average assets and return on average equity were 1.70% and 13.34% for the three months ended June 30, 2006 as compared to 2.02% and 14.81% for the corresponding periods of 2005. The six months ended June 30, 2006 earnings results correlate to a return on average assets and return on average equity of 1.71% and 13.12% as compared to 2.02% and 14.68% for the six months ended June 30, 2005.

Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,259,000 and $4,345,000 for the three and six months ended June 30, 2006 as compared to operating earnings of $2,307,000 and $4,618,000 for the same periods of 2005. Comparatively, earnings in 2006 have been impacted by a decline in the net interest margin, increased operating costs due in part to the opening of our North Atherton Street branch in State College in May 2005, and by operational growth. The decline in the net interest margin is due to the continued market interest rate increases initiated by the Federal Open Market Committee (“FOMC”).

The net interest margin for the three and six months ended June 30, 2006 was 4.12% and 4.10%, compared to 4.41% and 4.39% for the corresponding periods of 2005. The decrease in the net interest margin for the three and six month periods was due to the cost of interest bearing liabilities increasing at approximately twice the rate of the increase in the yield on earning assets. The increase in the cost of interest bearing liabilities was driven by the FOMC rate increases over the past year, which led to the cost of time deposits and short-term borrowings increasing 87 bp and 188 bp, respectively, for the three month period and 89 bp and 189 bp, respectively, for the six month period.

“We continue to develop strategies and products to further enhance the core earnings of the company and ultimately to enhance shareholder value. Despite the continuing margin compression we were able to maintain the quarterly core earnings at a level comparable to the prior year. This was accomplished by shifting earning assets from the investment portfolio to the loan portfolio, implementation of an overdraft protection program, and a continued watchful eye on expenses. In addition, we continue to expand on our small business deposit services, such as cash management, internet banking, and merchant card programs. In response to our customer requests, we also expect to roll out new retail deposit products and services during the early part of the third quarter. We also expect to hit the ground running with the Montoursville branch as the staff has been actively involved with community organizations and events while attracting new customers and familiarizing themselves with our current Montoursville customer base. The office will provide greater convenience to the businesses and residents of Montoursville that currently conduct their banking activities at the surrounding offices,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.

Total assets increased $2,712,000 to $576,305,000 at June 30, 2006 as compared to June 30, 2005. A continued emphasis on quality loan origination has led to net growth in the loan portfolio of $18,196,000, or 5.6% since June 30, 2005. The majority of the loan growth has occurred in the commercial real estate portion of the portfolio. Strategically the investment portfolio was reduced $22,834,000 to meet the funding needs of new higher yielding commercial loans. In addition, a significant investment in the construction of low-income housing units was undertaken during the third quarter of 2005 and into 2006 as part of the company’s strategic commitment to the communities where it provides banking services. Noninterest bearing deposits increased 3.1% to $74,310,000 at June 30, 2006 as compared to June 30, 2005, while interest bearing deposits decreased 2.4% over the same time period. Short-term borrowings increased strategically as they replaced the temporary decrease in interest bearing deposits, which was predominately the result of the roll off of $15,400,000 in certificates of deposit of one local governmental entity.

Shareholders’ equity decreased $4,163,000 to $71,632,000 at June 30, 2006 due to a significant decline in accumulated comprehensive income of $5,765,000 and the strategic purchase of $2,243,000 in treasury stock as part of the previously announced stock buyback plan. The decrease in accumulated comprehensive income is the result of a temporary decline in market value, or net unrealized gains, of the investment portfolio at June 30, 2006 as compared to June 30, 2005. The current level of shareholders’ equity equates to a book value per share of $18.22 as compared to $19.02 at June 30, 2005. During the six months ended June 30, 2006 dividends of $0.85 per share were paid to shareholders. The dividends represented a 12% increase or $0.09 per share over the dividends paid during the comparable period of 2005. “The dividends paid to date during 2006 met our continued objective to provide a cash dividend resulting in a return exceeding four percent. We have also increased the frequency of our stock repurchases on the open market. Through the first six months of 2006 we have purchased 44,000 shares on the open market as compared to 14,000 during the entire year of 2005. The continued strength of our earnings has allowed us to continue and maintain these programs,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. “PWOD” stock was between $36.50 and $39.50 during the three and six months ended June 30, 2006.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates twelve branch offices providing financial services in Lycoming, Clinton, and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.


THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

Click here for the complete press release with financial statements.

Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

Jersey Shore State Bank contributes to scholarship program

Williamsport, PA, June 29, 2006 Jersey Shore State Bank has contributed $1,200 to The Campbell Street Family and Community Center (The Center) scholarship program. The Center is located at 600 Campbell Street in Williamsport. “The Center’s scholarship program is a worthwhile endeavor and we are pleased to offer our financial support” states Ronald A. Walko, President and CEO of Jersey Shore State Bank.

The Center is a non-profit organization whose mission is to “provide programs and activities to empower the youth, parents, adults, community organizations, and institutions so that they may regain control of their lives, home, and communities, and to collectively work to strengthen our diverse community” according to Rocky Boone, executive director of The Center. Chess club, karate and boxing lessons, dance team, as well as youth and adult education classes are just a brief list of the activities and programs The Center offers to enhance our community.

Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $579,397 million in assets, with 12 offices in Centre, Lycoming, and Clinton counties. Plans are underway to open a new branch in Montoursville in the fall 2006. Investment and insurance products are also offered through the bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades in the NASDAQ National Market under the symbol PWOD.

Jersey Shore State Bank supports local economic development campaign

Williamsport, PA, June 23, 2006 Jersey Shore State Bank has pledged to help the economic growth of Lycoming County with a $25,000 donation to the SEED II (Sharing Efforts for Economic Development) campaign.

The SEED II campaign is a collaborative effort conducted by the Lycoming Foundation, Industrial Properties Corporation (IPC) and the Williamsport/Lycoming Chamber of Commerce. The funds raised will be used to create and retain local jobs, provide loans to growing companies, market the region, and purchase land for development. The SEED II drive has a goal to raise $500,000.

Ronald A. Walko, President/CEO of Jersey Shore State Bank stated, “we have a responsibility to help our community grow and prosper, and the association between the Lycoming Foundation, IPC and the Chamber is a natural alliance to help raise funds for the economic development of our county.”

PENNS WOODS BANCORP, INC. ANNOUNCES QUARTERLY DIVIDEND

Williamsport, PA, May 23, 2006 Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc., (Nasdaq:PWOD) has announced that the Company’s Board of Directors declared a second quarter 2006 cash dividend of $0.43 per share. The dividend represents an increase of 13% over the second quarter 2005 dividend and a $0.01 increase over the first quarter 2006 dividend. The dividend is payable June 27, 2006 to shareholders of record June 13, 2006.

"We continue to increase shareholder value, in part, by providing a cash dividend that equates to a dividend yield in excess of four percent. The dividend yield coupled with the previously announced stock repurchase program will assist the Board of Directors and management in maintaining our strategic course of increasing shareholder value,” commented Mr. Walko.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Jersey Shore State Bank Contributes $75,000 to Jersey Shore Hospital Building Fund

Jersey Shore, PA (May 15, 2006) Jersey Shore State Bank has offered their support to Jersey Shore Hospital’s Capital Campaign with a $75,000 donation. The donation will be distributed to the Campaign over a five-year period. “Jersey Shore State Bank was founded on the principle of giving back to the community, and this belief is still as strong today as it was in 1934,” Ronald Walko, President & CEO of Jersey Shore State Bank said. “I can’t think of a better way to help our community than to support the local hospital.”


Jersey Shore Hospital has embarked on a $2.5 million Capital Campaign to help fund the $17 million, two-story addition set to break ground later this year. The new facility will house over 45,000 square feet of modern, efficient patient care space, including a new emergency department, diagnostic radiology and imaging, inpatient and outpatient surgery, a state of the art critical care unit and new central lobby and registration.

Upon accepting the donation, Hubert Valencik, Chairman of the Board of Directors for Jersey Shore Hospital said, “On behalf of the Board of Directors of Jersey Shore Hospital, I am very happy to accept this contribution from Jersey Shore State Bank. Both the Bank and the Hospital have been a vital part of the Jersey Shore community for many years and have contributed back to the community in many ways. We are pleased to accept this check from JSSB-an important example of their commitment and investment in our community.”

Jersey Shore Hospital was built on its present site in 1951 and has not undergone a major fundraising campaign since 1969. The Hospital is accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and is designated as a Critical Access Hospital by the State of PA and the Medicare Program.

Penns Woods Bancorp, Inc. Holds Annual Shareholders’ Meeting

Williamsport, PA – April 28, 2006 Penns Woods Bancorp, Inc., (NASDAQ: PWOD) the holding company of Jersey Shore State Bank, recently held its annual shareholders meeting. Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc. and Jersey Shore State Bank presided over the meeting.

Brian L. Knepp Vice President - Finance; Thomas Donofrio, Executive Vice President/Chief Administrative Officer; Paul R. Mamolen, Chief Operating Officer and Senior Vice President of The Comprehensive Financial Group and Stephen M. Tasselli, Senior Vice President/Commercial Loan Manager presented informational reports discussing the company's performance during 2005. President Walko stated in his address to the shareholders “that it is wonderful to celebrate the past accomplishments of the company, but we must look forward to new challenges in the future.”

The following directors were re-elected to serve three-year terms for the corporation: James M. Furey, II; Leroy H. Keiler, III; James E. Plummer; and Hubert A. Valencik. S.R. Snodgrass, A.C. was ratified as the independent outside auditors for the company and an employee stock purchase program was also approved during the meeting.

Penns Woods Bancorp, Inc. is a bank holding company with $579 million in assets. Investment and insurance products are also offered through Jersey Shore State Bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

Contact:

Lori Strimple (570) 320-2056 lori.strimple@jssb.com@jssb.com

Penns Woods Bancorp, Inc. Announces Stock Repurchase Program

Jersey Shore, PA, April 25, 2006 Ronald A. Walko, President and CEO of Penns Woods Bancorp, Inc., (NASDAQ: PWOD) has announced that the Company’s Board of Directors has authorized the repurchase of 5% of the outstanding shares of the Company. The repurchase plan is for a one year period and allows for the repurchase of up to 197,000 shares or approximately 5% of the 3,941,787 shares outstanding. The repurchase program is replacing the recently completed August 2000 plan that authorized the repurchase of 5% of the then outstanding shares.

Repurchases are authorized to be made by the Company from time to time at the prevailing market prices on the open market in block trades or in privately negotiated transactions as, in management’s opinion, market conditions warrant. Shares repurchased will be held in Treasury.

“The repurchase of shares will allow the Company to manage its capital position more effectively, increase earnings per share, and provide added liquidity for stockholders,” commented Mr. Walko. “The repurchase plan, in addition to our strong dividend yield, provides a strong base to meet our objective to provide an acceptable return to our shareholders.”

Penns Woods Bancorp, Inc. is a bank holding company, with assets of $579,397 million, headquartered in Jersey Shore, Pennsylvania. Banking services are provided by its subsidiary, Jersey Shore State Bank, through 12 branch offices in Lycoming, Clinton and Centre Counties. Investment and insurance products are also offered through the bank’s subsidiary, The Comprehensive Financial Group. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.

Note: This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are other than statements of historical fact. PWOD cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of PWOD herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on PWOD’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.

Contact:

Ronald A. Walko 570-322-1111 (888) 412-5772 (Toll-Free in Pennsylvania) jssb@jssb.com

Penns Woods Bancorp, Inc. Reports First Quarter 2006 Earnings

Jersey Shore, PA – April 20, 2006 - Penns Woods Bancorp, Inc. (NASDAQ:PWOD) today reported net income for the three months ended March 31, 2006 of $2,455,000 compared to $2,715,000 for the same period of 2005, with basic and dilutive earnings per share of $0.62 and $0.68, respectively. Return on average assets and average equity were 1.72% and 13.24%, respectively, for the three months ended March 31, 2006 as compared to 2.01% and 14.56% for the corresponding period of 2005.

Net income from core operations (“operating earnings”), which excludes net security gains, amounted to $2,086,000 for the three months ended March 31, 2006, or a 9.7% decline when compared to operating earnings of $2,312,000 for the same period of 2005. Comparatively, earnings in 2006 have been impacted by increased operating costs due in part to the opening of our North Atherton Street branch in State College in May 2005, operational staff additions, and the decline in the net interest margin. The decline in the net interest margin is due to the continued market interest rate increases initiated by the Federal Open Market Committee.

The net interest margin for the three months ended March 31, 2006 was 4.08%, compared to 4.40% for the corresponding period of 2005. The decrease in the net interest margin is due primarily to a 76 basis point increase in the cost of interest-bearing liabilities, offset by an increase of 30 basis points in the earning asset yield.

“Strategically during 2005, we began shifting the mix of the investment portfolio from taxable agencies to tax-exempt municipal bonds. This shift not only has increased the tax equivalent yield on the investment portfolio, but has also provided call protection and aides in reducing our overall effective federal income tax rate,” commented Ronald A. Walko, President and Chief Executive Officer of Penns Woods Bancorp, Inc.

Total assets increased $35,404,000 or 6.5% to $579,397,000 at March 31, 2006. A continued emphasis on quality loan origination has led to net growth in the loan portfolio of $22,872,000, or 7.1% since March 31, 2005. The majority of the loan growth has occurred in the commercial real estate portion of the loan portfolio. The investment portfolio increased $9,325,000 as the tax-exempt segment of the portfolio was expanded to provide call protection for the portfolio and to reduce the interest rate sensitivity in the portfolio. In addition, a significant investment in the construction of low-income housing units was undertaken during the third quarter of 2005 and into the first quarter of 2006 as part of the company’s strategic commitment to the communities where it provides banking services.

“During the first quarter several strategic initiatives that will extend our service capabilities to both our current and prospective customers were begun. We broke ground and began construction on our newest office in Montoursville, which is anticipated to open by late summer of 2006. We also began the development of more comprehensive cash management and merchant card service and product lines, which are supported by a dedicated electronic banking team. We have also recently launched a new home equity line of credit product that has been well received. It was developed to meet our customers needs.” stated Mr. Walko.

Shareholders’ equity increased $1,904,000 to $73,815,000 at March 31, 2006 as earnings outpaced cash dividends to shareholders, treasury stock purchases, and a decline in accumulated other comprehensive income of $581,000. The decrease in accumulated comprehensive income is the result of a temporary decline in market value, or net unrealized gains, of the investment portfolio at March 31, 2006 as compared to March 31, 2005. The current level of shareholders’ equity equates to a book value per share of $18.73 as compared to $18.04 at March 31, 2005. During the three months ended March 31, 2006 a dividend of $0.42 per share was paid to shareholders. The dividend represented an 11% increase over the regular dividend paid during the comparable period of 2005 and an increase of $0.01 over the fourth quarter 2005 dividend. “Our objective continues to be the maintenance of an acceptable return on investment for our shareholders. Presently, by providing a cash dividend that results in a return that has consistently exceeded four percent is one way that we strive to meet that objective. Our continued strong earnings performance to date has made this possible,” commented Mr. Walko. The range of closing prices for Penns Woods Bancorp, Inc. “PWOD” stock was between $37.75 and $38.75 during the three months ended March 31, 2006.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates twelve branch offices providing financial services in Lycoming, Clinton, and Centre Counties. Investment and insurance products are offered through the bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

NOTE: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Management uses the non-GAAP measure of net income from core operations in its analysis of the company's performance. This measure, as used by PWOD, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature. Because certain of these items and their impact on PWOD's performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of PWOD's core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are other than statements of historical fact. PWOD cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of PWOD herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on PWOD’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional or national economies.

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

Click here for the complete press release with financial statements.

Contact:

Penns Woods Bancorp, Inc. Mr. Ronald A. Walko President and Chief Executive Officer 115 South Main Street Jersey Shore, PA 17740 570-322-1111 jssb@jssb.com

Jersey Shore State Bank Honored by Pennsylvania Housing Finance Agency

Williamsport, PA (April 4, 2006) Jersey Shore State Bank was recently recognized by the Pennsylvania Housing Finance Agency (PHFA) for its performance in 2005. The bank’s mortgage services department was ranked the third highest producer of PHFA loans in the Commonwealth, the top lender in PHFA HOMEstead Loans and the top PHFA construction lender.

Gary E. Lenker, PHFA Vice-Chair, presented the bank with PHFA’s Award of Excellence at a ceremony held at the Harrisburg Hilton Hotel.

The Pennsylvania Housing Finance Agency is the Commonwealth’s leading provider of capital for affordable homes. It has operated a homeownership program since 1982. The program has helped more than 110,000 Pennsylvania families buy homes of their own. Funding for the program comes from the sale of PHFA securities to investors across the nation.

Jersey Shore State Bank has been involved in the PHFA loan program since 1982. The bank was recently designated as a “Quick Close” lender with PHFA. A “Quick Close” lender qualifies the bank to make local decisions on PHFA loans. According to Jerry Seman, Vice President - Mortgage Officer, “Our success with the PHFA programs is because of our years of experience. I can honestly say we have some of the most experienced PHFA lenders in the state.” The mortgage services department of Jersey Shore State Bank has Mortgage Consultants located in bank branches in Lycoming, Clinton and Centre Counties.

Jersey Shore State Bank is a wholly owned subsidiary of Penns Woods Bancorp, Inc., a bank holding company with $568,668 million in assets. The bank has 12 offices in Centre, Lycoming and Clinton Counties. Penns Woods Bancorp, Inc. stock trades on the NASDAQ National Market under the symbol PWOD.