MISSION STATEMENT. Woodlands Bank recognizes that our customers are the reason for our existence.

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2 MISSION STATEMENT Woodlands Bank recognizes that our customers are the reason for our existence. Through our staff of professional employees we will consistently strive to deliver the best possible personalized service to individuals and local businesses while, at the same time, creating economic value for our shareholders. As an independent, locally owned community bank, we will endeavor to be an active partner in the communities we serve. In all that we do, it is our primary aim to make Woodlands Bank easy to do business with.

3 Letter to Stockholders 2 Independent Auditor s Report 3 Consolidated Balance Sheets 5 CONTENTS Consolidated Statements of Income 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Changes in Stockholders Equity 8 Consolidated Statements of Cash Flows 9 Notes to Financial Statements 10 Board of Directors & Officers Woodlands Bank and Board of Directors & Officers Woodlands Financial Services Company 40

4 Dear Friends: We are pleased to announce the financial results of Woodlands Financial Services Company (Company) for As Woodlands Bank celebrated its 25th year of local community banking, the focus remained on continuing to grow quality earning assets that will provide both the solid earnings base for future growth and success as well as offset the pressures on margins in the current interest rate environment. Efforts throughout the year also included the upgrades and implementations of certain technologies with the goal in mind of ultimately providing a more convenient and mobile experience for all our customers while maintaining the same friendly, no pressure, face-to-face relationship banking for which Woodlands Bank has always been known and which should be expected from any local community bank. Net income for the year of $3.28 million was up from $2.85 million in 2014, an increase of 14.9% driven primarily by an increase of $875 thousand, or 8.2%, in net interest income after provision for loan losses compared to the prior year. This increase continues to reflect the efforts of management in growing the Company s market share and earning assets while maintaining strong asset quality in the process. All increases in total other expenses for the year, $453 thousand, relate directly to the growth of the bank and also to the implementation of the technology upgrades already mentioned as part of the bank s long-term strategic plan. For 2015, the Return on Average Assets (ROAA) and Return on Average Equity (ROAE) were 0.90% and 9.72%, respectively, which were both increases over the prior year. Earnings per share in 2015 increased to $2.14 from $1.87 in 2014 reflecting the adjustment of the average outstanding shares amount following the 100% stock dividend that was paid to all shareholders of record in December. Total assets ended the year at $375.2 million which was a 3.0% increase from the end of As part of this overall asset growth, net loans increased $22.2 million, or 9.0%, during the year to end at $269.9 million, the third consecutive year of similar loan growth. While maintaining a diligent and disciplined asset/liability management strategy in the process of achieving this growth, management also continued to emphasize the same strong credit underwriting standards, both of which continue to reflect in the credit quality metrics and internal projections of future earnings and equity under various interest rate scenarios. The overall asset growth achieved during the year was funded by an increase in total deposits of 1.8%, which includes a 13.6% increase in non-interest bearing deposits, and an increase in core capital of 6.1% during These are exciting times for Woodlands Financial Services Company. We feel like we re looking at a plethora of opportunities being presented to us, both internally and externally, that will allow us to continue to grow our market share and to promote the Woodlands Way to a broader audience than ever before. Our objectives beyond just the asset and earnings growth will be to differentiate ourselves as a true community partner to local consumers, businesses, and civic organizations alike. Thank you all for your continued support of Woodlands Financial Services Company and Woodlands Bank. Sincerely, Jon P. Conklin President and CEO 2

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42 WOODLANDS BANK WOODLANDS FINANCIAL SERVICES COMPANY BOARD OF DIRECTORS R. Edward Alberts Richard H. Baker, Vice Chairman William C. Brown Jon P. Conklin Robert E. Forse, Chairman Marc D. Lewis Melvin W. Lewis George E. Logue, Jr. David L. Shollenberger Thomas G. Stubler Peter Went BOARD OF DIRECTORS R. Edward Alberts Richard H. Baker, Vice Chairman William C. Brown Jon P. Conklin Robert E. Forse, Chairman Marc D. Lewis Melvin W. Lewis George E. Logue, Jr. David L. Shollenberger Thomas G. Stubler Peter Went COMMUNITY BOARD MEMBERS William R. Camerer James F. Campbell Daniel D. Forrestal Michael Gaetano Nathan E. Grenoble Darin L. Hamm Margaret A. Harbaugh Darwin M. Higley Dawn M. Myers Clyde R. Peeling Eugene A. Schurer Thomas M. Springman Marvin H. Staiman Betty L. Steinbacher David J. Steinbacher Theodore J. Weiss Jessica A. Wheeland BOARD OF DIRECTORS EMERTI Donald E. Alsted Catharine K. Ertel John E. Hoffman Harold L. Hurwitz OFFICERS Thomas B. Burkholder, Vice President & Secretary Jon P. Conklin, President & CEO Joseph F. Farley, Vice President & Treasurer BANK OFFICERS 40 David L. Bartges, Vice President C. Victor Beach, Vice President Brian S. Brooking, Assistant Vice President Thomas B. Burkholder, Vice President & Secretary Jon P. Conklin, President & CEO John J. Engel, Jr., Vice President Joseph F. Farley, Vice President & CFO David L. Fortin, Jr., Assistant Vice President Andrew J. Gallagher, Vice President Matthew A. Gaugler, Vice President Shelly A. Hepler, Vice President Carlene J. Keyte, Assistant Vice President Stacy L. Neill, Vice President Carol J. Welliver, Vice President

43 WOODLANDS FINANCIAL SERVICES COMPANY COMMON STOCK is traded on the OTCQX market under the symbol of WDFN The broker listed below is the designated corporate broker for Woodlands Financial Services Company: Boenning & Scattergood, Inc Brewster Lane Powell, OH (800) REGISTRAR AND TRANSFER AGENT: Broadridge Corporate Issuer Solutions P.O. Box 1342 Brentwood, NY or Woodlands Bank is a Pennsylvania State Chartered Bank and a member of the Federal Reserve System and the Federal Deposit Insurance Corporation. Deposits are insured up to $250,000. Member FDIC Equal Housing Lender OFFICES LOCATED AT: HALLS STATION JERSEY SHORE WILLIAMSPORT 973 Lycoming Mall Drive Pennsdale, PA Allegheny Street Jersey Shore, PA West Fourth Street Williamsport, PA NEWBERRY SOUTH WILLIAMSPORT LOYALSOCK 2450 East Third Street Williamsport, PA West Fourth Street Williamsport, PA HUGHESVILLE 2 South Main Street Hughesville, PA West Southern Ave. So. Williamsport, PA LOCK HAVEN 202 North Jay Street Lock Haven, PA Visit our website at 41

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