ALLEGHENY BANCSHARES, INC. ANNOUNCES SECOND QUARTER 2016 FINANCIAL RESULTS
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce second quarter 2016 net income of $871,000 or $1.02 per share. This represents a 3.4% increase over second quarter 2015 income of $842,000 or $0.98 per share.
For the first half of 2016, Allegheny had net income of $1,618,000, which is a decrease of 1.2% from the net income of $1,638,000 earned the first half of 2015 and a decrease in earnings per share of $.02 to $1.89 for the first 6 months of 2016. Return on Average Assets (ROAA) for the first 6 months was 1.19% and the Return on Average Equity (ROAE) was 9.13%. This compares to a ROAA of 1.22% and a ROAE of 9.82% for the same period of 2015.
Assets increased 2.6% from June 30, 2015 to June 30, 2016 and on that date, totaled $274,862,000. Shareholders' Equity at the end of the second quarter totaled $36,007,000.
The decrease in earnings resulted from an increase in depreciation primarily due to information technology improvements and an increase in information technology management costs. Net Interest Income actually increased 3.3% or $180,000 over last year and provision for loan loss decreased by 20% or $90,000 comparing June 30 year to date 2015 and 2016. However, this increase in net income after provision was more than offset by an increase in noninterest expense.
W.A. (Bill) Loving, President and CEO, indicated he was extremely pleased with the first six month's performance. According to Loving, "Our net income is very strong considering the costs of investments we have made to better position our technology infrastructure and service locations for the future. While we continue to operate in a historically low interest rate environment, balance sheet management has provided a stable and strong net interest margin and net interest income.
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. We experienced a slight increase in non-interest expense related to our expanded presence in the Harrisonburg market and continued emphasis on on-line offerings, information technology infrastructure, and cyber security. These improvements, we believe, will enable us to be more efficient in the future. I am confident that our continued emphasis on "electronic banking capabilities" as well as the planned expansion of our traditional "brick and mortar" offices with the upcoming opening of our newest location in downtown Harrisonburg, will continue our long tradition of great service, 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 Harrisonburg location.