Allegheny Bancshares, Inc. Announces Second Quarter 2014 Financial Results
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce second quarter 2014 net income of $735,000 or $0.85 per share. This represents an 11.2% increase over second quarter 2013 income of $661,000 or $0.77 per share
For the first half of 2014, Allegheny had net income of $1,467,000, which is an increase of 18.3% from the net income of $1,240,000 earned the first half of 2013 and an increase in earnings per share of $.27 to $1.71 for the first 6 months of 2014. Return on Average Assets (ROAA) for the first 6 months was 1.12% and the Return on Average Equity (ROAE) was 9.24%. This compares to a ROAA of 0.95% and a ROAE of 8.02% for the same period of 2013.
Assets increased 1.19% from June 30, 2013 to June 30, 2014 and on that date, totaled $263,556,000. Shareholders' Equity at the end of the second quarter totaled $32,657,000.
W.A. (Bill) Loving, President and CEO, indicated he was extremely pleased with the first six month's performance. According to Loving, "as the national economy continues to improve, we are starting to experience an increase in loan demand and business activity. That slight increase, coupled with improvement in key expense and income categories provided the lift in earnings in 2nd quarter 2014 of 11.2%. I am pleased that we have also been able to limit the increase in operational expenses. With the improvement in the economy and the related slight increase in loan demand, coupled with our continued focus on liability structure and pricing, our net interest margin is up 10 basis points over the same quarter in 2013; and, based upon our careful analysis of loan quality, we have been able to reduce the amount we allocated to the loan loss provision.
Based upon the first six months operation, we are enjoying a $227,000 positive variance in net income; and, based upon known elements today, are cautiously optimistic that year-end results will reflect a positive variance over 2013.
While we are enjoying improved performance over last year, we remain focused on national economic trends and circumstances to gain insight on what we will be facing in the 2nd half of 2014 and beyond, as we do not operate in a vacuum. Additionally, we will continue to explore opportunities to grow the franchise, expand our markets and market presence, and look for additional ways we can make banking with us more convenient and rewarding."
This press release includes forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward looking statements are subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control. Accordingly, actual results may differ materially from anticipated results.
Pendleton Community Bank, an independent community bank since 1925, currently has five full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, and in the Virginia community of Harrisonburg. Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in our main office in Franklin.