Investor Relations

ALLEGHENY BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2015 FINANCIAL RESULTS

Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce first quarter 2015 net income of $795,000 or $0.93 per share. This compares with first quarter 2013 income of $733,000 or $0.85 per share. Return on Average Assets (ROAA) for the quarter was 1.19% and the Return on Average Equity (ROAE) was 9.53%. This compares to a ROAA of 1.12% and ROAE of 9.46% for the same period of 2014.

The increase in income for the first quarter in 2015 compared to first quarter 2014 was primarily due to an increase in interest income on loans, as well as a reduction in interest expense on deposits. First quarter net interest income increased by $191,000 over the same period in 2014. This was partially offset by an increase in the provision for loan losses. The provision for the first 3 months of 2015 was $225,000, as compared to $150,000 for the same period in 2014. Our growth in net interest income is due primarily to growth in loans. Average loan balance for first quarter is $15,396,000 higher in 2015 as compared to 2014, which represents an 8.26% increase.

Assets decreased by 1.00% from December 31, 2014 to March 31, 2015 and, at the end of the quarter, totaled $265,002,000 and Shareholders' Equity at the end of the quarter totaled $33,797,000.

W.A. (Bill) Loving, President and CEO, indicated he was pleased with the first quarter's performance. According to Loving "We continue to search out loan opportunities and have been successful over the past 9 months. This success has made a positive contribution to earnings, even considering the increased provision to support this growth, as we are experiencing strong net interest margins that we haven't seen in these last several years during the economic slowdown. We are optimistic in what we are seeing in our markets, as real estate continues to rebound and economic activity is starting to pick up. We have positioned the bank well during the economic slowdown, while we waited for loan demand to increase. The results are showing positive improvement, and continue to exceed our peer group. We, like most banks, are concerned about this prolonged period of low interest rates persisting into the future; however we believe we have positioned our asset/liability position to properly to protect us, should we start to see rates move. Given where we are today, we are cautiously optimistic that these positive trends will continue throughout the remainder of the year proving to be another successful year."

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, in addition to a loan production office in Wardensville, West Virginia. Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in Franklin.