Exhibit 99.1

Press Release — For Immediate Release

October 18, 2013

Penns Woods Bancorp, Inc. Reports Third Quarter 2013 Operating Earnings

Williamsport, PA — October 18, 2013 - Penns Woods Bancorp, Inc. (NASDAQ:PWOD)

Penns Woods Bancorp, Inc. continued its solid earnings and growth during the recently completed third quarter of 2013.  Earnings of $10,589,000 were achieved for the nine month period ending September 30, 2013 resulting in basic and dilutive earnings per share of $2.48.

Highlights

·                  Completion of the acquisition of Luzerne National Bank Corporation (“Luzerne”) effective June 1, 2013 resulted in an increase in net loans of $254,057,000; investments of $21,140,000; deposits of $279,867,000; and assets of $329,209,000 at the time of acquisition.

·                  Net income from core operations (“operating earnings”), which is a non-GAAP measure of net income excluding net securities gains and bank owned life insurance gains on death benefits, decreased to $3,248,000 for the three months ended September 30, 2013 compared to $3,372,000 for the same period of 2012.  Net income from core operations decreased to $9,099,000 for the nine months ended September 30, 2013 compared to $9,849,000 for the same period of 2012.

·                  Operating earnings per share for the three months ended September 30, 2013 were $0.67 basic and dilutive compared to $0.88 basic and dilutive for the same period of 2012.  Operating earnings per share for the nine months ended September 30, 2013 were $2.13 basic and dilutive compared to $2.57 basic and dilutive for the same period of 2012.

·                  Return on average assets was 1.08% for the three months ended September 30, 2013 compared to 1.77% for the corresponding period of 2012.  Return on average assets was 1.39% for the nine months ended September 30, 2013 compared to 1.78% for the corresponding period of 2012.

·                  Return on average equity was 10.39% for the three months ended September 30, 2013 compared to 15.94% for the corresponding period of 2012.  Return on average equity was 12.90% for the nine months ended September 30, 2013 compared to 16.25% for the corresponding period of 2012.

·                  The results for the three and nine months ended September 30, 2013 were negatively impacted by one time expenses of $684,000 and $1,307,000 related to the acquisition of Luzerne National Bank Corporation.

“As expected the results for the three and nine months ended September 30, 2013 have been impacted by the completed acquisition of Luzerne National Bank Corporation into the Penns Woods Bancorp, Inc. family.  The acquisition was the primary driver of the balance sheet growth, but was a drag on earnings for the period.  We believe that most acquisition related expenses are now behind us and look forward to continuing the integration of Luzerne into the Penns Woods family.  In addition to the completed acquisition, we continue to focus on the building of future revenue streams including branches in Lewisburg and Loyalsock.  The Loyalsock location, which is expected to open during 2014, will also house the Mortgage department on the upper floors as the growth in this business line has expanded significantly over the past several years,” 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 and nine months ended September 30, 2013 was $3,246,000 and $10,589,000 compared to $3,667,000 and $10,754,000 for the same period of 2012.  Results for the three and nine months ended September 30, 2013 compared to 2012 were impacted by an decrease in after-tax securities gains of $297,000 (from a gain of $295,000 to a loss of $2,000) for the three month periods and an increase in after-tax securities gains of $694,000 (from a gain of $796,000 to a gain of $1,490,000) for the nine month periods.  In addition, a gain of $109,000 on death benefit related to bank owned life insurance was recorded during the first quarter of 2012.  Impacting the results for the three and nine months ended September 30, 2013 was the recognition of $684,000 and $1,307,000 in expenses related to the acquisition of Luzerne National Bank Corporation.  Basic and dilutive earnings per share for the three and nine months ended September 30, 2013 were $0.67 and $2.48 compared to $0.96 and $2.80 for the corresponding periods of 2012.  Return on average assets and return on average equity were 1.08% and 10.39% for the three months ended September 30, 2013 compared to 1.77% and 15.94% for the corresponding period of 2012.  Return on average assets and return on average equity were 1.39% and 12.90% for the nine months ended September 30, 2013 compared to 1.78% and 16.25% for the corresponding period of 2012.

Net Interest Margin

The net interest margin for the three and nine months ended September 30, 2013 was 4.07% and 4.19% compared to 4.34% and 4.51% for the corresponding periods of 2012.  While the net interest margin has decreased year over year, net interest income on a fully taxable equivalent basis has increased $2,814,000 and $4,184,000 for the three and nine months ended September 30, 2013 compared to the corresponding period of 2012.  Driving this increase is the growth in the loan and deposit portfolios for the nine months ended September 30, 2013 compared to the corresponding period for 2012 primarily due to the acquisition of Luzerne National Bank Corporation, growth in home equity products, recognition of $528,000 in loan interest from the payoff of a nonaccrual loan in the first quarter of 2013, and the continued emphasis on core deposit growth.  The primary funding for the loan growth was an increase in core deposits.  These deposits represent a lower cost funding source than time deposits and comprise 75.55% of total deposits at September 30, 2013 compared to 73.53% at September 30, 2012.  The continued growth in core deposits has led to the total cost of deposits decreasing to 50 bp for the nine months ended September 30, 2013 from 73 bp for the corresponding period of 2012.  FHLB long-term borrowings have decreased $5,528,000 since September 30, 2012.  The decrease is due to the maturity of $5,528,000 in long-term borrowings during the nine months ended September 30, 2013 carrying an average rate of 3.94%.  The changes in the composition of the deposit and borrowing portfolios has led to the total cost of interest bearing funding decreasing to 72 bp for the nine months ended September 30, 2013 from 107 bp at the corresponding period of 2012.

“The current rate environment has caused compression of the net margin and will continue to challenge the net interest margin as we move forward.  Our strategy to mitigate the earnings impact of the compressing net interest margin remains focused on increasing earning assets by adding quality loans to the earning asset portfolio, even though these new earning assets are at a lower rate than the legacy earning assets that they are replacing.  We continue to shorten the investment portfolio duration in order to reduce interest rate and market risk in the future. This is being undertaken primarily through the sale of long-term municipal bonds that have a maturity date of 2025 or later.  The proceeds of the bond sales are being deployed into loans and variable rate and intermediate term corporate bonds.  The earning asset strategies do impact current earnings, but they play a key role in our long-term asset liability management strategy as the balance sheet is adjusted to better prepare

for a rising rate environment.  On the funding side of the balance sheet there is limited opportunity to reduce costs.  Our focus will continue to be on lower cost core deposits, with an eye toward the lengthening of select funding sources such as time deposits or borrowings as opportunities are presented,” commented President Grafmyre.

Assets

Total assets increased $363,484,000 to $1,204,090,000 at September 30, 2013 compared to September 30, 2012 due primarily to the acquisition of Luzerne National Bank Corporation.  Net loans increased to $796,533,000 at September 30, 2013 compared to September 30, 2012 due to the acquisition of Luzerne and campaigns related to increasing home equity product market share during 2012 and 2013.  The investment portfolio decreased $10,872,000 from September 30, 2012 to September 30, 2013 due to our strategy to reduce the investment portfolio duration through the selective selling of bonds as opportunities develop partially offset by the acquisition of Luzerne National Bank Corporation.

Non-performing Loans

Our non-performing loans to total loans ratio has decreased to 0.75% at September 30, 2013 from 2.48% at September 30, 2012.  The decrease in non-performing loans is primarily the result of several partial charge-offs and the payoff of a large construction loan that was on nonaccrual.  The majority of non-performing loans are centered on several loans that are either 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 recoveries of $338,000 for the nine months ended September 30, 2013 augmented the allowance for loan losses which was 1.19% of total loans at September 30, 2013.

Deposits

Deposits have increased $334,411,000 to $975,521,000 at September 30, 2013 compared to September 30, 2012, with core deposits (total deposits excluding time deposits) increasing $265,620,000, while higher cost time deposits only increased $68,791,000.  Noninterest-bearing deposits have increased $100,089,000 to $215,374,000 at September 30, 2013 compared to September 30, 2012.  Driving this growth is our acquisition of Luzerne National Bank Corporation in addition to 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 $32,073,000 to $125,852,000 at September 30, 2013 compared to September 30, 2012.  The accumulated other comprehensive loss of $5,606,000 at September 30, 2013 is a result of a decrease in unrealized gains on available for sale securities from an unrealized gain of $10,848,000 at September 30, 2012 to an unrealized loss of $799,000 at September 30, 2013.  The amount of accumulated other comprehensive loss at September 30, 2013 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 $674,000 to $4,807,000 at September 30, 2013.  The current level of shareholders’ equity equates to a book value per share of $26.12 at September 30, 2013 compared to $24.43 at September 30, 2012 and an equity to asset ratio of 10.45% at September 30, 2013 compared to 11.16% at September 30, 2012.  Excluding goodwill and intangibles, book value per share was $22.17 at September 30, 2013 compared to $23.64 at September 30, 2012.  Dividends declared for the three and nine months ended September 30, 2013 were $0.47 and $1.66 per share, which includes a special cash dividend of $0.25 per share declared in the first quarter 2013, compared to $0.47 and $1.41 for the three and nine months ended September 30, 2012.

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, and Luzerne Bank, which operates nine branch offices providing financial services in Luzerne and Lackawanna 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, 2012.

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

PENNS WOODS BANCORP, INC.

AVERAGE BALANCES AND INTEREST RATES