Penns Woods Bancorp, Inc. (PWOD): Analyse de Pestle [Jan-2025 Mise à jour]

Plongeant dans le monde complexe de Penns Woods Bancorp, Inc. (PWOD), cette analyse du pilon dévoile la tapisserie complexe des forces externes façonnant cette centrale bancaire régionale. Des paysages politiques nuancés de la Pennsylvanie aux innovations technologiques de pointe transformant les services financiers, nous explorerons les défis et les opportunités à multiples facettes qui définissent le positionnement stratégique de PWOD. Préparez-vous à un voyage éclairant à travers les dimensions politiques, économiques, sociologiques, technologiques, juridiques et environnementales qui stimulent la résilience et les capacités adaptatives remarquables de cette institution financière.

Penns Woods Bancorp, Inc. (PWOD) - Analyse du pilon: facteurs politiques

Pennsylvania State Banking Regulations Impact sur les stratégies opérationnelles

Pennsylvanie Department of Banking and Securities applique des exigences réglementaires spécifiques pour les banques à carrelage de l'État. Depuis 2024, l'État oblige:

Aspect réglementaire	Exigences spécifiques
Adéquation du capital	Ratio de capital minimum de niveau 1 de 8%
Exigences de liquidité	Maintenir le rapport de couverture de liquidité de 100%
Rapports de conformité	Soumissions trimestrielles des états financiers

Les politiques monétaires de la Réserve fédérale influencent

Paramètres de politique monétaire de la Réserve fédérale pour 2024:

• Taux des fonds fédéraux: 5,25% - 5,50%
• Conformité aux exigences de capital Bâle III
• Mandats de tests de stress pour les banques avec des actifs de plus de 250 millions de dollars

Conformité de la Loi sur le réinvestissement communautaire

Mesures spécifiques de la performance de l'ARC pour Penns Woods Bancorp:

Catégorie d'évaluation de l'ARC	Métrique de performance
Prêts aux petites entreprises	37,5% des prêts aux petites entreprises de moins de 1 million de dollars
Investissements au développement communautaire	4,2 millions de dollars investis dans des projets communautaires à faible revenu

Impact du climat politique régional sur les banques de petites entreprises

Pennsylvanie Small Business Banking Landscape Statistics:

• Prêts totaux de petites entreprises en Pennsylvanie: 42,3 milliards de dollars
• Taille moyenne des prêts aux petites entreprises: 187 500 $
• Taux d'approbation des prêts aux petites entreprises: 26,4%

Penns Woods Bancorp, Inc. (PWOD) - Analyse du pilon: facteurs économiques

Les fluctuations des taux d'intérêt ont un impact sur les marges de prêt et d'investissement

Au quatrième trimestre 2023, Penns Woods Bancorp a déclaré une marge d'intérêt nette de 3,42%, avec un taux des fonds fédéraux à 5,33%. La sensibilité du portefeuille de prêts de la banque démontre une corrélation directe avec les changements de taux d'intérêt.

Métrique des taux d'intérêt	Valeur 2023	Impact sur la banque
Marge d'intérêt net	3.42%	Indicateur de revenus directs
Taux de fonds fédéraux	5.33%	Benchmark des coûts de prêt
Prêts totaux	1,24 milliard de dollars	Source de revenus primaire

Conditions économiques locales de Pennsylvanie

Le taux de chômage de la Pennsylvanie en décembre 2023 était de 3,9%, avec un revenu médian des ménages à 67 587 $, influençant directement la performance du portefeuille de prêts.

Indicateur économique	Valeur de Pennsylvanie 2023
Taux de chômage	3.9%
Revenu médian des ménages	$67,587
Taux de croissance du PIB	2.1%

Stabilité économique régionale et valeur de la solvabilité

Métriques de qualité du crédit Révenez la stabilité économique de la Pennsylvanie grâce à la performance des prêts de Penns Woods Bancorp.

Métrique de qualité du crédit	Valeur 2023
Ratio de prêts non performants	0.72%
Réserve de perte de prêt	12,3 millions de dollars
Taux de redevance net	0.35%

Diversification économique régionale

Les sources de revenus de Penns Woods Bancorp reflètent les divers secteurs économiques de la Pennsylvanie.

Secteur	Allocation du portefeuille de prêts
Immobilier commercial	42%
Fabrication	18%
Soins de santé	15%
Agriculture	7%
Autres services	18%

Penns Woods Bancorp, Inc. (PWOD) - Analyse du pilon: facteurs sociaux

Les données démographiques de la population vieillissante en Pennsylvanie ont des besoins de service bancaire

Selon les données du US Census Bureau 2021, la Pennsylvanie détient 19,8% de sa population âgée de 65 ans et plus. Cette tendance démographique influence considérablement les exigences des services bancaires.

Groupe d'âge	Pourcentage	Préférence de service bancaire
65-74 ans	10.4%	Banque de succursale traditionnelle
Plus de 75 ans	9.4%	Services personnalisés

Préférences bancaires numériques parmi les jeunes générations

Le Pew Research Center rapporte que 93% des milléniaux et 99% des smartphones Gen Z utilisent des interactions bancaires numériques.

Génération	Utilisation des banques mobiles	Fréquence de transaction en ligne
Milléniaux	93%	12.4 Transactions / mois
Gen Z	99%	15.2 Transactions / mois

Attentes bancaires de la communauté rurale et suburbaine

Les données FDIC 2022 indiquent que 14,7% de la population de Pennsylvanie réside dans les comtés ruraux, nécessitant des approches bancaires spécialisées.

Type de région	Population	Préférence de la branche
Comtés ruraux	14.7%	Banque basée sur les relations
Comtés de banlieue	68.3%	Modèle de service hybride

Augmentation des tendances de la littératie financière

Le National Financial Educators Council rapporte que le score moyen de littératie financière pour les résidents de Pennsylvanie est de 67,3 sur 100.

Métrique de littératie financière	Score de Pennsylvanie	Moyenne nationale
Connaissances financières globales	67.3/100	64.8/100
Engagement d'éducation financière numérique	42.6%	39.5%

Penns Woods Bancorp, Inc. (PWOD) - Analyse du pilon: facteurs technologiques

Investissements de plate-forme bancaire numérique

En 2024, Penns Woods Bancorp a investi 2,3 millions de dollars dans les mises à niveau de la plate-forme bancaire numérique. La banque a déclaré une augmentation de 37% de l'engagement des utilisateurs bancaires en ligne par rapport à 2023.

Catégorie d'investissement technologique	2024 allocation	Augmentation de l'engagement des utilisateurs
Plate-forme bancaire numérique	2,3 millions de dollars	37%
Infrastructure bancaire mobile	1,7 million de dollars	42%

Infrastructure de cybersécurité

Les dépenses de cybersécurité ont atteint 4,1 millions de dollars en 2024. La Banque a mis en œuvre des systèmes de détection de menaces avancés avec un taux de prévention des intrusions de 99,8%.

Métrique de la cybersécurité	2024 performance
Investissement total de cybersécurité	4,1 millions de dollars
Taux de prévention des intrusions	99.8%

Développement d'applications bancaires mobiles

Les téléchargements d'applications bancaires mobiles ont augmenté de 45% en 2024, avec 127 500 utilisateurs mensuels actifs. Les coûts de développement ont totalisé 1,2 million de dollars.

• Téléchargements totaux d'applications mobiles: 127 500
• Investissement en développement: 1,2 million de dollars
• Taux de croissance des utilisateurs: 45%

Implémentation de l'intelligence artificielle

L'IA et les investissements d'apprentissage automatique ont atteint 3,5 millions de dollars en 2024. La précision de l'évaluation des risques s'est améliorée de 62% grâce à des algorithmes dirigés par l'IA.

Catégorie de technologie de l'IA	2024 Investissement	Amélioration des performances
Systèmes d'évaluation des risques d'IA	3,5 millions de dollars	Amélioration de la précision de 62%

Penns Woods Bancorp, Inc. (PWOD) - Analyse du pilon: facteurs juridiques

Exigences strictes de conformité bancaire dans le cadre des réglementations Dodd-Frank

Penns Woods Bancorp, Inc. est soumis à des exigences complètes de conformité Dodd-Frank, avec des mesures réglementaires spécifiques:

Métrique réglementaire	Exigence de conformité	État actuel
Ratio d'adéquation des capitaux	Minimum 10,5%	12,3% au Q4 2023
Conformité au test de stress	Obligatoire annuel	Passé 2023 Test de stress de la Réserve fédérale
Rapports de gestion des risques	Soumissions trimestrielles	Rapports à 100% opportuns

Lois sur la protection financière des consommateurs régissant les pratiques de prêt

Mesures de conformité clés de prêt:

• Taux de violation des prêts équitables: 0,02% (2023)
• Taux de résolution des plaintes des consommateurs: 98,7%
• Précision des rapports HMDA: 99,5%

Normes de gouvernance d'entreprise pour les institutions bancaires régionales

Métrique de la gouvernance	Niveau de conformité	Détails
Membres indépendants du conseil d'administration	75%	9 membres du conseil sur 12 indépendants
Composition du comité d'audit	100% indépendant	3 experts financiers certifiés
Transparence de la rémunération des cadres	Divulgation complète	Répond aux exigences de déclaration de rémunération des cadres SEC

Mandats de reporting réglementaire et de transparence

Reportation des mesures de conformité:

• Formulaire SEC 10-K COMPRISE DE FILLAGE: 100%
• Taux de précision des états financiers: 99,9%
• Résultats de l'examen réglementaire: zéro déficiences critiques en 2023

Penns Woods Bancorp, Inc. (PWOD) - Analyse du pilon: facteurs environnementaux

Des pratiques bancaires durables émergent comme un différenciateur compétitif

En 2024, Penns Woods Bancorp démontre un engagement envers les services bancaires durables par le biais d'initiatives environnementales ciblées:

Métrique environnementale	Performance actuelle	Montant d'investissement
Produits financiers verts	4 programmes de prêt durable	12,3 millions de dollars alloués
Objectif de neutralité au carbone	Ciblé par 2030	Mises à niveau des infrastructures de 5,7 millions de dollars
Financement des énergies renouvelables	Prêts au projet solaire / éolien	Portfolio de 8,2 millions de dollars

Initiatives de prêt vert soutenant les investissements commerciaux environnementaux

Répartition du portefeuille de prêts verts:

• Prêts aux énergies renouvelables: 6,5 millions de dollars
• Financement du projet d'efficacité énergétique: 4,7 millions de dollars
• Prêts agricoles durables: 3,2 millions de dollars

Intégration d'évaluation des risques climatiques dans les stratégies de prêt

Catégorie des risques climatiques	Méthodologie d'évaluation	Budget d'atténuation des risques
Risques climatiques physiques	Analyse géospatiale complète	2,1 millions de dollars
Risques de transition	Mappage de vulnérabilité spécifique au secteur	1,8 million de dollars

Considérations d'efficacité énergétique dans les opérations de succursales et les infrastructures

Métriques de l'efficacité énergétique:

• Réduction totale de consommation d'énergie des succursales: 22,5%
• Implémentation d'éclairage LED: 87% des succursales
• Installation du panneau solaire: 3 succursales Emplacements
• Économies annuelles des coûts énergétiques: 423 000 $

Mise à niveau des infrastructures	Statut d'implémentation	Économies de coûts
Systèmes de gestion des bâtiments intelligents	Implémenté dans 6 succursales	178 500 $ par an
Systèmes HVAC économes en énergie	Modernisé 4 emplacements majeurs	245 000 $ par an

Penns Woods Bancorp, Inc. (PWOD) - PESTLE Analysis: Social factors

You're looking at how the people in your footprint are changing and what that means for the business of Penns Woods Bancorp, Inc., especially now that the merger with Northwest Bancshares, Inc. is closing in late July 2025. The social fabric of central Pennsylvania directly impacts your product mix and service delivery costs.

Aging demographic profile in central Pennsylvania increases demand for wealth management services.

The demographic shift in Pennsylvania is a major tailwind for your wealth management division, which will now be integrated under the Northwest umbrella. The data is clear: the state is aging fast. Between 2017 and 2025, the population aged 65 and older in Pennsylvania is projected to rise by a significant 23 percent, while the population under 64 is expected to decline during that same period. This means more clients entering their peak asset-accumulation or preservation years. Furthermore, research shows that financial literacy tends to decline by about one percentage point per year for older adults, creating a natural need for trusted advisory services to manage those accumulated assets. Across the US, up to 60 percent of consumers report that healthy aging-which includes preserving independence-is a top priority, directly translating to demand for estate planning and retirement income strategies.

Here's a quick view of the demographic pressure points:

Metric	Value/Projection	Source Context
PA Population 65+ Growth (2017-2025)	23 percent increase	Driving demand for asset management.
PA Population 60+ (Current)	One in four residents	Indicates a large existing base of older adults.
Projected PA Population 60+ (2030)	One in three residents	Shows continued acceleration of this trend.
US Consumers Prioritizing Healthy Aging	Up to 60 percent	Ties to demand for longevity and independence planning.

Customers expect seamless mobile banking, pushing digital transformation costs up.

Your customers, like everyone else's, are comparing your app experience not to the bank down the street, but to the best digital experiences they have anywhere. By 2025, 88 percent of consumers prefer online banking, with 59 percent favoring the mobile app specifically. This isn't optional; 40 percent of customers will leave a bank if they cannot use their preferred channels. For a regional institution like Penns Woods Bancorp, Inc. (now part of Northwest), meeting this expectation means heavy investment in technology-think AI-powered personalization and conversational interfaces-to deliver the speed and independence users demand. While some technology spending might stabilize as pandemic-era contracts renew, overall software spend in the sector is still projected to grow 14 percent in 2025, meaning the cost to keep pace with digital expectations is definitely rising.

Local community focus is a strong competitive moat against larger national banks.

This is where you and your former subsidiaries, Jersey Shore State Bank and Luzerne Bank, have a real advantage. The merger is designed to build on this, enhancing the combined company's presence across North Central and Northeastern Pennsylvania. In a world where customers demand personalized experiences, the deep, local relationships built by community-focused banks are hard for national giants to replicate. This local trust acts as a competitive moat. When customers feel valued, loyalty skyrockets; for multichannel banking customers, feeling valued drives loyalty significantly. You need to make sure the integration preserves this community-centric approach, as it's a key differentiator.

Financial literacy gaps require more advisory services, not just transactional banking.

The reality is that many people in your service area are financially fragile, which creates a business opportunity for high-value advisory services. As of 2025, only about 49 percent of U.S. adults are considered financially literate, a number that has barely moved in eight years. This lack of knowledge costs the average American $1,015 annually in avoidable financial mistakes. Furthermore, 56 percent of U.S. adults report experiencing financial anxiety. This is why proactive financial counseling works: in one Pennsylvania county, advisory services helped clients achieve $3.1 million in new savings and an $8.1 million reduction in debt. You can't just offer a checking account; you need to offer the roadmap. Start drafting the 2026 community outreach plan to focus on financial planning workshops, targeting those older adults whose literacy is declining. Finance: draft 13-week cash view by Friday.

Penns Woods Bancorp, Inc. (PWOD) - PESTLE Analysis: Technological factors

You're looking at the technology landscape and wondering if Penns Woods Bancorp, Inc. is keeping pace, especially with the speed of change we've seen heading into 2025. Honestly, the tech race isn't optional anymore; it's the price of admission for staying relevant, particularly in serving local businesses.

FinTech competitors are aggressively targeting small business lending and payments

The digital disruptors are not just nibbling at the edges; they've taken a serious chunk of the market. By 2025, fintech platforms are sourcing more than half of small-business loans in developed regions. To put that in perspective, while traditional community banks historically held about a 45% market share in this space, fintech lenders are now capturing around 28% of new originations. This means Penns Woods Bancorp, Inc. is facing competition that offers near-instant decisions, often using alternative data sources that older systems struggle to incorporate. It's a direct challenge to your bread-and-butter commercial relationships.

Here's the quick math: If you aren't offering seamless digital payment solutions or revenue-based financing options that complement traditional lending, you're defintely leaving fee income on the table. These competitors are using technology to offer faster, more transparent services, which is what today's business owners expect. That's the new baseline.

Cybersecurity spending must rise to protect customer data and meet regulatory standards

The threat landscape is only getting more expensive and more sophisticated. Following significant breaches in 2024, bank executives are doubling down; 88% of U.S. bank executives planned to increase their overall IT spending by at least 10% in 2025, with cybersecurity being the top budget priority. The average cost of a data breach in the financial industry hit $6.08 million in 2024, a number that should keep any risk committee awake. For Penns Woods Bancorp, Inc., this isn't just about preventing a headline; it's about meeting increasingly stringent regulatory expectations around data privacy and resilience.

• Protecting customer PII is non-negotiable.
• AI-driven tools are now essential for threat detection.
• Compliance with evolving standards requires continuous investment.

Automation of loan origination processes is essential to cut the cost-to-income ratio

Efficiency is where technology pays for itself, and loan origination is a prime target. Manual, paper-heavy processes are simply too costly in this environment. Banks that have successfully upgraded their core systems are reporting a 45% boost in operational efficiency and slashing operational costs by 30-40% within the first year post-migration. This level of automation, often powered by AI for underwriting and risk modeling, directly translates to a lower cost-to-income ratio, which is critical for profitability when net interest margins are under pressure.

You need to look hard at every step in your commercial loan pipeline-from application intake to final approval-and ask if a machine can do it faster and more accurately. If onboarding takes 14+ days, churn risk rises.

Legacy core banking systems are slowing down necessary product innovation

The foundation of your technology stack matters immensely. Many regional banks, including those similar to Penns Woods Bancorp, Inc., still run on legacy core systems that can be up to 40 years old. These monolithic architectures are the primary bottleneck preventing the rapid deployment of new, competitive products. While modernization is complex, the alternative is stagnation. Modern, cloud-native cores can deliver near-perfect service uptime at 99.99% and allow banks to get to market faster. Furthermore, the cost difference is stark: neobanks can acquire customers for as little as $5-$15, compared to the $150-$350 cost for traditional institutions still wrestling with old mainframes.

Here is a snapshot of where the technology focus is for banks in 2025:

Technology Focus Area	2025 Industry Metric/Trend	Impact on Penns Woods Bancorp, Inc.
FinTech Market Share (SME Loans)	Over 50% sourced via fintech platforms.	Requires competitive digital origination speed.
Cybersecurity Budget Increase	88% of executives plan to increase IT spend by $\ge$10%.	Mandatory investment to meet rising threat levels.
Data Breach Cost (Financial Industry)	Averaged $6.08 million in 2024.	Highlights the high cost of failure in data protection.
Operational Efficiency Post-Upgrade	Reported 45% boost after core modernization.	Direct path to lower cost-to-income ratio.
Core System Age	Some legacy systems are up to 40 years old.	Indicates potential for significant operational drag.

Finance: draft a high-level TCO (Total Cost of Ownership) comparison for a core system upgrade vs. maintaining the current legacy environment by Friday.

Penns Woods Bancorp, Inc. (PWOD) - PESTLE Analysis: Legal factors

You're navigating a regulatory environment that feels like it's constantly shifting, and for a financial institution like Penns Woods Bancorp, Inc., the legal landscape dictates capital allocation more than almost any other factor. The key takeaway here is that while some burdens are easing due to regulatory tailoring for smaller institutions, the core compliance framework remains expensive and complex, especially following your merger with Northwest Bancshares, Inc.

Dodd-Frank Act compliance costs remain a significant operational burden

Even years after its enactment, the Dodd-Frank Wall Street Reform and Consumer Protection Act continues to demand significant resources. Before the merger, smaller banks like Penns Woods Bancorp, Inc. felt this disproportionately; studies showed small banks spent nearly an additional $1 billion per year on legal fees alone due to the act, alongside increased auditing and consulting expenses. While the combined entity, now part of Northwest Bancshares, Inc. (pro forma total assets in excess of $17 billion), benefits from scale, the sheer volume of regulations-which roughly doubled the pre-crisis count-means compliance infrastructure is a fixed, heavy cost. Furthermore, the CFPB finalized rule amendments related to the Dodd-Frank Act under Regulation Z, effective January 1, 2025, requiring constant monitoring to ensure all new disclosure standards are met.

Consumer Financial Protection Bureau (CFPB) is increasing oversight on overdraft fees

The CFPB's focus on so-called junk fees has been intense, culminating in a final rule in December 2024 that targeted institutions with over $10 billion in assets, which the combined entity now falls under. This rule, set to take effect October 1, 2025, would have forced a cap on overdraft fees at $5 or a cost-based alternative, potentially saving consumers up to $5 billion annually. However, you need to know that Congress actually repealed this specific CFPB Overdraft Rule on September 10, 2025. Still, the average overdraft fee was $27.08 in 2024, and the CFPB's enforcement actions against large banks for past issues totaled hundreds of millions-Wells Fargo paid $205 million and Regions Bank paid $141 million in refunds. The regulatory posture remains hawkish, even with the rule repeal. Don't get complacent. That's just one less headache to manage.

New state data privacy laws (like the California Consumer Privacy Act model) require national adaptation

The patchwork of state-level data privacy laws is forcing financial institutions to adopt national standards preemptively. Currently, 20 states have passed such laws. Research shows that when a state announces a strong privacy law, banks often boost their IT spending by more than a third in anticipation. For a bank operating across state lines, managing compliance with models like the California Consumer Privacy Act (CCPA) is a major IT and legal undertaking. The industry is actively lobbying for federal preemption to avoid this complexity, seeking exemptions under the Gramm-Leach-Bliley Act (GLBA) for financial data. If federal action stalls, expect continued, costly adaptation of systems to handle consumer data requests, like California's DROP Act, which mandates compliance by August 1, 2026.

Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) reporting needs constant audit

BSA/AML compliance is a non-stop audit requirement, though recent regulatory moves aim to tailor the burden for smaller institutions. In November 2025, the Office of the Comptroller of the Currency (OCC) announced it is immediately discontinuing the annual Money Laundering Risk (MLR) System data collection for community banks (institutions under $30 billion in assets). This is a direct effort to reduce regulatory load, as these banks are deemed lower risk. Furthermore, the OCC, FinCEN, and others issued FAQs in October 2025 clarifying Suspicious Activity Report (SAR) filing requirements, helping institutions focus resources. Still, the FDIC requested comment in September 2025 on surveying banks about their direct BSA/AML compliance costs, signaling that regulators are actively trying to quantify this operational drag.

Here's a quick look at the regulatory shifts impacting compliance focus:

• BSA/AML data collection: Discontinued by OCC for community banks.
• BSA/AML exam procedures: New tailored procedures effective February 1, 2026.
• Overdraft Rule: CFPB's October 2025 rule was repealed September 10, 2025.
• Data Privacy: State laws force IT spending increases of over 33% on average.

What this estimate hides is the cost of litigation risk associated with failing to meet these standards, which is often the primary driver for over-investing in compliance technology. The key risk is that the tailored relief for BSA/AML applies to community banks, but the combined entity's size puts it squarely in the crosshairs of larger, more complex rules like the CFPB's former overdraft cap.

Finance: draft a memo by next Wednesday detailing the expected 2026 compliance budget impact from the new OCC BSA/AML examination procedures starting February 1, 2026.

Penns Woods Bancorp, Inc. (PWOD) - PESTLE Analysis: Environmental factors

You're looking at the environmental landscape as a key component of risk and opportunity, especially now that Penns Woods Bancorp, Inc. is part of the larger Northwest Bank structure following the July 2025 close. Honestly, the biggest shift isn't just regulatory; it's about capital. Investors, even in regional banks, are demanding clearer Environmental, Social, and Governance (ESG) disclosures. If you don't speak the language of climate risk and transition planning, you risk being sidelined by larger funds. This isn't just about being 'green'; it's about proving portfolio resilience to the people holding your stock.

The pressure for ESG reporting is real, and while the search results show other banks publishing 2025 reports, you need to ensure the combined entity's disclosures align with evolving standards like TCFD (Task Force on Climate-related Financial Disclosures). For a bank of this size, even minor reputational missteps regarding environmental stewardship can cause unnecessary friction with local stakeholders and potential institutional partners. It's a minor, but visible, reputational task to show you are actively managing your operational carbon footprint.

Climate risk assessment is becoming necessary for commercial real estate loan portfolios.

This is where the rubber meets the road for a lender. Your legacy Penns Woods Bancorp commercial real estate (CRE) loan book, as of March 31, 2025, has significant exposure in specific sectors that are under the climate risk microscope. We need to watch the underwriting standards closely, especially given that industry-wide, about 20% ($957 billion) of outstanding commercial mortgages were set to mature in 2025, forcing many owners to seek refinancing under new climate scrutiny. If onboarding takes 14+ days longer due to due diligence on property energy efficiency, churn risk rises.

Here's the quick math on the exposure we can see from the Q1 2025 data for the legacy portfolio:

Property Type (as of 03/31/2025)	Outstanding Balance (in thousands)	Number of Loans
Office	$176,785	125 (Total Office/Retail/Restaurant)
Retail + Restaurant	$381,650	193 (Total Office/Retail/Restaurant)
Total Visible CRE Exposure	$558,435	318 (Total Office/Retail/Restaurant)

What this estimate hides is the specific geographic concentration of these assets relative to physical climate hazards like flood zones or extreme heat, which regulators and investors are now mapping. You defintely need a granular view of the Loan-to-Value (LTV) ratios on these specific assets, especially the Office segment, against future energy efficiency compliance costs.

Opportunity exists in financing local green energy and sustainability projects.

While specific green financing targets for the legacy Penns Woods Bancorp aren't public, the broader trend shows this is a growth area. Industry leaders are seeing increased investment sales activity driven by financing for things like data center construction and property retrofits to meet net-zero goals. For a community-focused bank, financing local solar installations for commercial clients or offering favorable terms for energy-efficient building upgrades is a clear way to generate loan volume while meeting ESG expectations. This is about capturing incremental revenue streams beyond traditional leasing or sales, as Morgan Stanley noted in their April 2025 analysis of CRE trends.

• Target local commercial property energy retrofits.
• Fund small-scale community solar initiatives.
• Develop loan products for EV charging infrastructure.
• Focus on assets with strong operational efficiency gains.

Operational carbon footprint reduction is a minor, but visible, reputational task.

Managing the bank's own operational footprint-the energy used in branches and operations centers-is less about massive financial impact and more about signaling commitment. It's about walking the talk. While we don't have the 2025 baseline for the combined entity, the focus for many banks is on sourcing renewable electricity and optimizing facilities. For example, other institutions have set goals to source 100% renewable electricity within operations by 2025. For the newly integrated footprint, prioritizing LED upgrades and eliminating unnecessary travel or courier runs, as seen in other 2025 ESG reports, provides easy, visible wins that support the broader narrative of responsible management.

Finance: draft 13-week cash view by Friday.