Exhibit 99.1

Press Release – For Immediate Release

April 18, 2012

Penns Woods Bancorp, Inc. Reports First Quarter 2012 Operating Earnings

Williamsport, PA — April 18, 2012 - Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

Highlights

·                  Net income from core operations (“operating earnings”), which is a non-GAAP measure of net income excluding net securities gains and losses and bank owned life insurance gains of death benefit, increased to $3,191,000 for the three months ended March 31, 2012 compared to $2,770,000 for the same period of 2011.

·                  Operating earnings per share for the three months ended March 31, 2012 were $0.83 basic and dilutive compared to $0.72 basic and dilutive for the same period of 2011, an increase of 15.3%.

·                  Return on average assets was 1.91% for the three months ended March 31, 2012 compared to 1.65% for the corresponding period of 2011.

·                  Return on average equity was 17.39% for the three months ended March 31, 2012 compared to 16.62% for the corresponding period of 2011.

“Our focus on building core deposits, loan growth, and managing credit risk is being rewarded through increases in net income and related return metrics of earnings per share, return on equity, and return on assets.  While we have successfully been negotiating the challenges presented by the economy and credit cycle, we must and will remain focused on the challenges that lie ahead,” said Richard A. Grafmyre, CFP®, President and CEO.

A reconciliation of the non-GAAP financial measures of operating earnings, operating return on assets, operating return on equity, and operating earnings per share, described in the highlights, to the comparable GAAP financial measures is included at the end of this press release.

Net Income

Net income, as reported under GAAP, for the three months ended March 31, 2012 was $3,689,000 compared to $2,853,000 for the same period of 2011.  Results for the three months ended March 31, 2012 compared to 2011 were impacted by an increase in after-tax securities gains of $306,000 (from a gain of $83,000 to a gain of $389,000).  In addition, a gain of $109,000 on death benefit related to bank owned life insurance was recorded during the three months ended March 31, 2012.  Basic and dilutive earnings per share for the three months ended March 31, 2012 were $0.96 compared to $0.74 for the corresponding period of 2011.  Return on average assets and return on average equity were 1.91% and 17.39% for the three months ended March 31, 2012 compared to 1.65% and 16.62% for the corresponding period of 2011.

Net Interest Margin

The net interest margin for the three months ended March 31, 2012 was 4.72% compared to 4.89% for the corresponding period of 2011.  While the net interest margin has decreased year over year, net interest income on a fully taxable equivalent basis has increased $743,000 to $8,498,000 for the three months ended March 31, 2012 compared to the corresponding period of 2011.  Driving this increase is the continued emphasis on core deposit growth.  These deposits represent a lower cost funding source than time deposits and comprise 71.5% of total deposits at March 31, 2012 compared to 64.9% at March 31, 2011.  The average rate paid on total interest-bearing deposits decreased 33 basis points (bp) for the three months ended March 31, 2012 compared to the same period of 2011.  The decrease was led by the rate paid on time deposits decreasing 37 bp for the three

months ended March 31, 2012 compared to the same period of 2011.  The duration of the time deposit portfolio, which was shortened over the past several years, is now being slowly lengthened due to the apparent bottoming or near bottoming of deposit rates.  FHLB long-term borrowings have been reduced by $10,500,000 since March 31, 2011 as borrowings carrying an average rate of 4.60% matured during the three months ended December 31, 2011.

“The current interest rate environment provides challenges to the net interest margin.  We have been able to reduce the rates being paid on interest-bearing liabilities; however, earning asset yields have also been decreasing.  Over the past few years we have been shortening the bond portfolio duration by utilizing shorter term corporate and agency bonds to offset the relatively longer duration of municipal bonds in the portfolio.  While this action has limited current earnings due to the low rates on the short end of the interest rate curve, it also limits interest rate risk and will provide cash flow over the next few years as we anticipate a period of increasing rates.  Downward pressure on the yield on earning assets is occurring due to the inability to add new loans and investments to the balance sheet at comparable rates to the current portfolios.  Our focus on increasing core deposits has resulted in a decrease in the overall cost of interest-bearing liabilities which has limited the negative effects of a declining yield on earning assets,” commented President Grafmyre.

Assets

Total assets increased $99,777,000 to $793,114,000 at March 31, 2012 compared to March 31, 2011.  Net loans increased 7.5% to $435,832,000 at March 31, 2012 compared to March 31, 2011 as the economic environment has in general provided fewer loan opportunities over the past year.  Housing, transportation, and all other facets related to the Marcellus Shale natural gas exploration are creating loan opportunities and we are aggressively attempting to attract those loans that meet or exceed our credit standards.  During 2011 and 2012 successful loan campaigns were undertaken to build home equity loans and lines of credit.  The investment portfolio increased $63,903,000 from March 31, 2011 to March 31, 2012 due to a combination of market value increases and the purchase of short maturity bonds that have been utilized to reduce the portfolio duration and to provide current cash flow.

Non-performing Loans

Our non-performing loans to total loans ratio has decreased to 2.55% at March 31, 2012 from 3.13% at March 31, 2011.  The decrease in non-performing loans is primarily the result of a decrease in commercial loan delinquencies due to a partial charge-off during the second quarter of 2011.  The majority of non-performing loans are centered on several loans that either are in a secured position and have sureties with a strong underlying financial position or have a specific allocation for any impairment recorded within the allowance for loan losses.  Net loan charge-offs of $9,000 for the three months ended March 31, 2012 represented 0.01% of average loans for the three months ended March 31, 2012.  The allowance for loan losses was increased to 1.75% of total loans at March 31, 2012 from 1.61% at March 31, 2011 due to the general economic uncertainty that persists.

Deposits

Deposits have grown 17.6%, or $92,825,000, to $621,542,000 at March 31, 2012 compared to March 31, 2011, with core deposits (total deposits excluding time deposits) increasing $101,018,000, while higher cost time deposits decreased $8,193,000.  Noninterest-bearing deposits have increased 22.0% to $116,271,000 at March 31, 2012 compared to March 31, 2011.  Also playing a significant role in increasing core deposits was money market and NOW accounts with growth rates of 31.2% and 53.9%, respectively.  Driving this growth is our commitment to easy-to-use products, community involvement, and emphasis on customer service.  We have also successfully implemented a targeted marketing campaign aimed at further strengthening our customer relationships, while also expanding our market penetration.

Shareholders’ Equity

Shareholders’ equity increased $16,281,000 to $85,279,000 at March 31, 2012 compared to March 31, 2011.  The accumulated other comprehensive gain of $1,699,000 at March 31, 2012 is a result of an increase in unrealized gains on available for sale securities from an unrealized loss of $6,005,000 at March 31, 2011 to an unrealized gain of $5,832,000 at March 31, 2012.  However, the amount of accumulated other comprehensive gain at March 31, 2012 was also impacted by the change in net excess of the projected benefit obligation over the market value of the plan assets of the defined benefit pension plan resulting in an increase in the net loss of $1,720,000.  The current level of shareholders’ equity equates to a book value per share of $22.22 at March 31, 2012 compared to $17.99 at March 31, 2011 and an equity to asset ratio of 10.75% at March 31, 2012 compared to 9.95% at March 31, 2011.  Excluding accumulated other comprehensive gain/loss, book value per share was $21.78 at March 31, 2012 compared to $20.18 at March 31, 2011.  Dividends paid to shareholders were $0.47 for the three months ended March 31, 2012 compared to $0.46 for the three months ended March 31, 2011.

Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates thirteen branch offices providing financial services in Lycoming, Clinton, Centre, and Montour 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 such as net securities gains and losses. 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.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

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

THIS INFORMATION IS SUBJECT TO YEAR-END AUDIT ADJUSTMENT

PENNS WOODS BANCORP, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

PENNS WOODS BANCORP, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES

* Core deposits are defined as total deposits less time deposits

Reconciliation of GAAP and non-GAAP Financial Measures