Investor Relations

ALLEGHENY BANCSHARES, INC. ANNOUNCES SECOND QUARTER 2015 FINANCIAL RESULTS

Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce second quarter 2015 net income of $842,000 or $0.98 per share. This represents a 14.6% increase over second quarter 2014 income of $735,000 or $0.85 per share

For the first half of 2015, Allegheny had net income of $1,638,000, which is an increase of 18.3% from the net income of $1,467,000 earned the first half of 2014 and an increase in earnings per share of $.20 to $1.91 for the first 6 months of 2015 Return on Average Assets (ROAA) for the first 6 months was 1.22% and the Return on Average Equity (ROAE) was 9.82%. This compares to a ROAA of 1.12% and a ROAE of 9.24% for the same period of 2014.

Assets increased 1.75% from June 30, 2014 to June 30, 2015 and on that date, totaled $267,891,000. Shareholders' Equity at the end of the second quarter totaled $34,379,000.

The increased earnings come from an increase in net interest income comprised of both increases in interest income and lower interest expense comparing June 30 for mid- year 2014 and 2015. Interest income on loans is 6.6% higher , as a result of a 7.6% in loans outstanding as of June 30, 2015 compared to June 30, 2014's total. Interest expense on deposits has decreased 25.1% in first half of 2015 as compared to the same period in 2014.

W.A. (Bill) Loving, President and CEO, indicated he was extremely pleased with the first six month's performance. According to Loving, "we continue to see economic improvement in some of the markets we serve and we have had the opportunity to capitalize on this positive trend. While also starting to see competitive forces at play, we have been able to grow loans to post a mid-year level up 7.6% over the same period in 2014. This growth has provided the increased interest income; and, our continued emphasis on pricing has allowed us, at the same time, to reduce funding costs. The result is an improvement in net interest income and the ability to maintain a stable net interest margin.

On the operational side, we continue to focus on our model and costs- all in an effort to operate as efficiently as possible, while maintaining superior service. I am confident that our emphasis on "electronic banking capabilities" as well as the traditional delivery channels, i.e. the local personal banker approach in each of our offices, we have a healthy blend that has paved the way for this year's growth, efficiency, and improved earnings.

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. Pendleton Community Bank also has a Loan Production office in Wardensville, WV. Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in our main office in Franklin.