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Career Opportunity
Allegheny Mortgage Company, a subsidiary of Pendleton Community Bank, is looking for a high energy, self motivated individual to fill the position of Loan Administration Clerk/Loan Processor.
Fourth Quarter 2007 Allegheny Bancshares, Inc. Announces Fourth Quarter Earnings
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce its results of operations for the 4th quarter and year ending December 31, 2007.
Allegheny’s net income for the 4th quarter of 2007 was $682,000 up $76,000 (11.1%) over the same period in 2006. This increase from 2006’s level of $606,000, was attributable primarily to the growth in loans experienced the last 6 months of the year thereby increasing net interest and net income. Year to date earnings increased from $2,368,000 in 2006 to $2,473,000 in 2007 representing an improvement of 4.4%, while total assets grew $10,864,000 or 5.9% to $194,881,000. This year’s net income produced earnings per share of $2.80, which was an increase of $.15 per share or 5.7% above 2006’s level of $2.65. Total shareholders equity at December 31, 2007 increased by $1,171,000 to $26,731,000 compared to $25,560,000 at December 31, 2006.
Allegheny’s key financial performance indicators continued to be strong producing a return on average assets (ROAA) of 1.32% and a return on average equity (ROAE) of 9.34%. Pendleton Community Bank continues to see strong loan demand, and as a result the net interest income continues to grow even as the bank incurs higher deposit costs associated with the competitive interest rate environment. Allegheny’s key financial performance indicators continue to be strong and compare favorably with industry and local peer group data.
William A. (Bill) Loving, Executive Vice President and CEO, indicated he was pleased with the 2007’s performance. According to Loving, “The earnings increases are a result of the hard work of each and every one of our team members and the investments into the future we made in the past. We continue to see growth and improved performance from our newest financial center in Harrisonburg, VA which opened in July of 2006, and we believe that this office will continue to grow and further enhance earnings and returns. We are also very pleased with the return from our investment in the Allegheny Mortgage division of the bank. At a time when many mortgage operations are facing difficulty, we, based upon our traditional approach to this business line, are continuing to see growth and profitability.
We are especially pleased with 2007 earnings given the turbulent economic environment we operated in during 2007. The banking and financial industry faced many obstacles in 2007 beginning the year with tightening net interest margins and ending the year with the “sub-prime” dilemma and falling stock prices. I believe these issues will continue well into 2008; however, I’m also confident that our emphasis on serving the communities in which we live and by adhering to conservative banking practices our Company will not endure the downturns many financial entities have or will endure. While we continue these time honored community banking methods, we have also continued to make technological advances to meet our customers’ needs and to make Pendleton Community Bank viable to meet our communities’ needs in both good and poor economic times. As an example, recent events in the mortgage world have created concern and financial impacts on Wall Street; however, we, as a community bank, remain financially sound and committed to ensuring credit remains consistently and widely available through Allegheny Mortgage or our traditional banking arm- Pendleton Community Bank. This fact has been demonstrated by 2007’s strong financial performance. ”
This year (2007) has been a tough environment in which to operate. I believe 2008 will have a new set of challenges and obstacles as we face the economic uncertainties that lie ahead; however, I’m confident we have positioned our company to produce long term benefits for the Company, our team members, our customers, and our shareholders.”
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.
Reference is made to the additional risks and factors described from time to time in Allegheny’s reports and registration statements filed with the Securities and Exchange Commission. Allegheny undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Pendleton Community Bank, an independent community bank since 1925, currently has four full-service offices in Franklin, Moorefield, Marlinton and Harrisonburg, VA.
Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in Moorefield.
Third Quarter 2007 Allegheny Bancshares, Inc. Announces Third Quarter Earnings
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce third quarter 2007 earnings.
For the third quarter of 2007, Allegheny had net income of $615,000 or $.70 per share, up from $578,000 and $.65 per share in the same quarter of 2006. This represents an increase of $.05 per share which is a 7% increase over last year and an increase in quarter over quarter earnings of $37,000 or a 6.4% increase in earnings.
For the first nine months of 2007, Allegheny had net income of $1,790,000, an increase of 1.6% from the net income of $1,761,000 earned in the same period of 2006. Earnings per share increased from $1.97 in the first nine months of 2006 to $2.03 in the same period of 2007, an increase of $.06 per share or a 3.04% increase. Loan volume for the first nine months of 2007 is up by $5.7 million; and, as a result, net interest income has increased 2.2% over the same period in 2006. In addition the company has seen a 14.5% increase in its non-interest income, primarily from loan fees generated by the mortgage division. Non interest expense for the first nine months of 2007 primarily made up of salaries, benefits, occupancy and equipment expense shows an increase of $265,000 or 7.1% over the same period in 2006. Allegheny’s key financial performance indicators continue to be strong.
The nine months ending September 30, 2007 results produced an annualized return on average assets (ROAA) of 1.30% and a return on average equity (ROAE) of 9.14%. This compares to a ROAA of 1.33% and a ROAE of 9.51%-for the same period of 2006. Assets at September 30, 2007 were $192 million, an increase of $8 million, or 4.35% since December 31, 2006.
W.A. (Bill) Loving, Executive Vice President and CEO, indicated he was pleased with the third quarter’s performance. According to Loving,”The earnings increases are a result of the investments we made in 2006. We are continuing to see growth and improved performance from our newest office in Harrisonburg, VA which opened in July of 2006, and we believe that this office will continue to grow and further enhance earnings and returns. We are also very pleased with the return from our investment in the Allegheny Mortgage division of the bank. We are especially pleased with third quarter earnings given the continued economic environment we have operated in during the first nine months of 2007. Industry earnings are continuing to be impacted by tighter net interest margins, a historical component of net income. Given the economy and market, we have been able to grow earnings, despite a tighter margin, through growth of our traditional banking franchise as well as Allegheny Mortgage a division focusing on meeting the mortgage needs of the markets we serve. Recent events in the mortgage world have created concern and financial impacts on Wall Street; however, we, as a community bank, remain financially sound and committed to ensuring credit remains consistently and widely available in good times and bad through Allegheny Mortgage or our traditional banking arm- Pendleton Community Bank. This fact, I’m confident, has been demonstrated by this quarter’s and year-to-date strong financial performance. ”
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.
Reference is made to the additional risks and factors described from time to time in Allegheny’s reports and registration statements filed with the Securities and Exchange Commission. Allegheny undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Pendleton Community Bank, an independent community bank since 1925, has four full-service offices in Franklin, Moorefield, Marlinton and Harrisonburg, VA.
Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in Moorefield.
Second Quarter 2007 Allegheny Bancshares, Inc. Announces Second Quarter Earnings
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce second quarter 2007 earnings.
For the second quarter of 2007, Allegheny had net income of $603,000 or $.68 per share, slightly down from $609,000 and $.68 per share in the same quarter of 2006. The net income per share did not decrease due to lower average number of shares of common stock outstanding.
For the first half of 2007, Allegheny had net income of $1,175,000 and a decrease of 0.8% from the net income of $1,184,000 earned in the first half of 2006. Earnings per share increased from $1.32 in the first half of 2006 to $1.33 to the first half of 2007, due to lower number of average shares outstanding. Loan volume for the first 6 months of 2007 is up by $4.7 million over 2006; and, as a result, net interest income has increased .9% over the same period in 2006. In addition the company has seen a 13.24% increase in its non-interest income, primarily from loan fees generated by Allegheny Mortgage Company. Non interest expense for the first half of 2007, primarily made up of salary and benefits, occupancy and equipment expense, shows an increase of $198,000 or 8.1% over the same period in 2006. Allegheny’s key financial performance indicators continue to be strong. First half 2007 results produced a return on average assets of 1.28% and a return on average equity of 9.08%. Assets at June 30, 2007 were $184 million, an increase of $9 million, or 5.27% over the last twelve months.
While earnings for the 2nd quarter were less than those reported for the previous year, W.A. (Bill) Loving, Executive Vice President and CEO, indicated he was pleased with the second quarter’s performance. According to Loving,”The earnings compression was primarily due to costs of the recent expansion of financial services into a new market. Occupancy, equipment, and salary expenses increased over last year as a result of the cost of operating our newest office near Harrisonburg, VA which opened in July of 2006. Consequently operating costs associated with the investment in the Harrisonburg market would not have impacted net income for the first 6 months of 2006. This investment into the future, we’re confident, will continue to provide returns like the ones we have experienced to date. We are already seeing signs of return on this investment as our Harrisonburg financial center out performed our existing offices in terms of growth in deposits for the first half of 2007”
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.
Reference is made to the additional risks and factors described from time to time in Allegheny’s reports and registration statements filed with the Securities and Exchange Commission. Allegheny undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Pendleton Community Bank, an independent community bank since 1925, has four full-service offices in Franklin, Moorefield, Marlinton and Harrisonburg, VA.
Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in Moorefield.
First Quarter 2007 Allegheny Bancshares, Inc. Announces First Quarter Earnings
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce first quarter 2007 earnings.
For the first quarter of 2007, Allegheny had net income of $572,000 or $.65 per share, compared with $575,000 and $.64 per share in the same quarter in 2006.
While earnings for the 1st quarter were down slightly in comparison to those reported for the same quarter of the previous year, W.A. (Bill) Loving, Executive Vice President and CEO, indicated he was pleased with the first quarter’s performance. According to Loving, “The earnings compression was attributable to the continued pressure the current interest rate environment has placed on our net interest margin along with the increased costs associated with our recent expansion of financial services into a new market. Occupancy, equipment, and salary expenses increased over last year’s level as a result of the construction and staffing of our newest office near Harrisonburg, VA in July of 2006. This investment into our future, we’re confident, based upon 1st quarter 2007 growth results, will continue to provide for our historical levels of return. In addition, the strong performance of Allegheny Mortgage, a division of Pendleton Community Bank, which opened in early 2006, provided strong earnings in the first quarter and gives insight to the income opportunities available as we enter the traditional mortgage season.”
Allegheny’s key financial performance indicators continue to be strong. First quarter 2007 results produced a return on average assets of 1.26% and a return on average equity of 8.89%. Assets at March 31, 2007 were $185 million, an increase of 8.19% over the last twelve months.
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.
Reference is made to the additional risks and factors described from time to time in Allegheny’s reports and registration statements filed with the Securities and Exchange Commission. Allegheny undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Pendleton Community Bank, an independent community bank since 1925, has four full-service offices in Franklin, Moorefield, Marlinton and Harrisonburg, VA.
Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in Moorefield.
Fourth Quarter 2006 Allegheny Bancshares, Inc. Announces 2006 Earnings
Franklin, WV – Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce its results of operations for the year ended December 31, 2006.
Allegheny’s net income decreased from $2,446,173 in 2005 to $2,368,174 in 2006, while total assets grew $12,697,000 or 7.4% to $184,017,000. This year’s net income produced earnings per share of $2.65, which was a decrease of $.08 per share (2.93%) below 2005’s level of $2.73. Total shareholders equity at December 31, 2006 increased by $696,000 to $25,560,000 compared to $24,864,000 at December 31, 2005.
Allegheny’s key financial performance indicators continued to be strong producing a return on average assets (ROAA) of 1.34% and a return on average equity (ROAE) of 9.15%. Pendleton Community Bank continues to see strong loan demand, and as a result the net interest income continues to grow even as the bank incurs higher deposit costs associated with the competitive interest rate environment. Allegheny’s key financial performance indicators continue to be strong and compare favorably with industry and local peer group data.
W.A. “Bill” Loving, Executive Vice President & CEO of Allegheny Bancshares, Inc., and Pendleton Community Bank, indicated “Our strong financial performance this year allowed our shareholders to enjoy another increase in their annual dividend from last year’s level of $1.20 to $1.30 per share, which represents a 8% improvement over 2005’s level. “
While earnings for the year ended December 31, 2006 were less than those reported for the previous year, CEO Loving indicated that he was pleased with the performance in 2006. According to Loving, “Much of our reduction in year to date earnings is associated with our expansion and investment into new markets such as the July opening of our Harrisonburg Financial Center and Allegheny Mortgage Company, a natural extension of our lending function, designed to offer a full array of mortgage loan products. While the start-up costs required for these investments had a negative impact on 2006 earnings, we are pleased with the progress to date for each division and confident that the “long-term” success of each will positively impact future earnings.”
In addition to the cost of expansion into new markets, income was impacted by a bond portfolio restructuring that occurred in late December 2006 resulting in a “pre-tax” loss of $75,000. While this has no effect to shareholder book value in the short-term, as shareholder’s equity accounts for reductions in market value, this repositioning was designed to enhance future net interest income. According to Loving, “This strategy was designed to improve our asset/liability position in light of the interest rate environment we are in and improve investment income in the future. Simply put- our underlying purpose was and is to increase shareholder value in the long run.”
This year (2006) has been a tough environment as it relates to interest rates on community banks; and, Pendleton Community Bank is no exception. I believe 2007 will produce a similar environment; however, I’m confident we have positioned our company to produce long term benefits for the Company, our employees, our customers and our shareholders.”
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.
Reference is made to the additional risks and factors described from time to time in Allegheny’s reports and registration statements filed with the Securities and Exchange Commission. Allegheny undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Pendleton Community Bank, an independent community bank since 1925, has four full-service financial centers located in the communities of Franklin, Moorefield and Marlinton and the newest financial center in Harrisonburg, Virginia. Allegheny Mortgage Company, a division of Pendleton Community Bank, originates residential mortgage loans and is headquartered in Moorefield.
Allegheny Bancshares, Inc. Audit Committee Charter I. Role
The committee’s role is to act on behalf of the board of directors and oversee all material aspects of the company’s financial reporting, control and audit functions, except those specifically related to the responsibilities of another standing committee of the board. The audit committee’s role includes a particular focus on the qualitative aspects of financial reporting to shareholders and on company processes for the management of business/financial risk and for compliance with significant applicable legal, ethical and regulatory requirements.
The role also includes coordination with other board committees and maintenance of strong, positive working relationships with management, external and internal auditors, counsel and other committee advisors.
II. Membership
The committee shall consist of at least three, and no more than six, independent, non-executive board members. Committee members shall have: (1) knowledge of the primary industries in which the company operates; (2) the ability to read and understand fundamental financial statements, including a company’s balance sheet, income statement, statement of cash flows and key performance indicators; and (3) the ability to understand key business and financial risks and related controls and control processes. The committee shall have access to its own counsel and other advisors at the committee’s sole discretion.
At least one member, preferably the chair, should be literate in business and financial reporting and control, including knowledge of the regulatory requirements, and should have past employment experience in finance or accounting or other comparable experience or background. Committee appointments shall be approved annually by the full board. The committee chairperson shall be selected by the committee members.
III. Operating Principles
The committee shall fulfill its responsibilities within the context of the following overriding principles:
1. Communications: The chair and others on the committee shall, to the extent appropriate, maintain an open avenue of contact throughout the year with senior management, other committee chairs and other key committee advisors (external and internal auditors, etc.), as applicable, to strengthen the committee’s knowledge of relevant current and prospective business issues.
2. Education/Orientation: The committee, with management, shall develop and participate in a process for review of important financial and operating topics that present potential significant risk to the company. Additionally, individual committee members are encouraged to participate in relevant and appropriate self-study education to ensure understanding of the business and environment in which the company operates.
3. Annual Plan: The committee, with input from management and other key committee advisors, shall develop an annual plan responsive to the “primary committee responsibilities” detailed herein. The annual plan shall be reviewed and approved by the full board.
4. Meeting Agenda: Committee meeting agendas shall be the responsibility of the committee chair, with input from committee members. It is expected that the chair would also ask for management and key committee advisors, and perhaps others, to participate in this process.
5. Expectations and Information Needs: The committee shall communicate committee expectations and the nature, timing and extent of committee information needs to management, internal auditors and external parties, including external auditors. Written materials, including key performance indicators and measures related to key business and financial risks, shall be received from management, auditors and others materials in sufficient depth to participate in committee/board dialogue.
6. External Resources: The committee shall be authorized to access internal and external resources, as the committee requires, to carry out its responsibilities.
7. Meeting Attendees: The committee shall request members of management, counsel, internal and external auditors, as applicable, to participate in committee meetings, as necessary, to carry out the committee’s responsibilities. Periodically and at least annually, the committee shall meet in private session with only the committee members. It shall be understood that either internal or external auditors, or counsel, may, at any time, request a meeting with the audit committee or committee chair with or without management’s attendance. In any case, the committee shall meet in executive session separately with internal and external auditors, at least annually.
8. Meeting Frequency: The committee shall meet at least quarterly. Additional meetings shall be scheduled as considered necessary by the committee or chair.
9. Reporting to the Board of Directors: The committee, through the committee chair, shall report periodically, as deemed necessary, but at least annually, to the full board. In addition, summarized minutes from committee meetings, separately identifying monitoring activities from approvals, shall be available to each board member .
10. Self-Assessment: The committee shall review, discuss and assess its own performance as well as its role and responsibilities, seeking input from senior management, the full board and others. Changes in role and/or responsibilities, if any, shall be recommended to the full board for approval.
IV. Responsibilities
Financial Reporting:
1. Review and assess the annual and interim financial statements before they are released to the public or filed with the SEC.
2. Review and assess the key financial statement issues and risks, their impact or potential effect on reported financial information, the processes used by management to address such matters, related auditors’ views, and the basis for audit conclusions.
3. Approve changes in important accounting principles and the
application thereof in both interim and annual financial reports.
4. Advise financial management and the external auditors that they are expected to provide a timely analysis of significant current financial reporting issues and practices.
Risks and Controls:
1. Review and assess the company’s business and financial risk management process, including the adequacy of the overall control environment and controls in selected areas representing significant risk.
2. Review and assess the company’s system of internal controls for detecting accounting and financial reporting errors, fraud and defalcations, and legal violations. In that regard, review the related findings and recommendations of the external and internal auditors, together with management’s responses.
3. Review with legal counsel any regulatory matters that may have a material impact on the financial statements.
4. Review the results of the annual audits of directors’ and officers’ expense accounts and management perquisites prepared by the internal auditors.
External and Internal Audits:
1. Recommend the selection of the external auditors for approval by the board of directors.
2. Instruct the external auditors that they are responsible to the board of directors and the audit committee as representatives of the shareholders. In that regard, confirm that the external auditors will report all relevant issues to the committee in response to agreed-upon expectations.
3. Review the performance of the external and internal auditors.
4. Obtain a formal written statement from the external auditors consistent with standards set by the Independence Standards Board. Additionally, discuss with the auditors any relationships or non-audit services that may affect their objectivity or independence.
5. Consider, in consultation with the external and internal auditors, their audit scopes and plans to ensure completeness of coverage, reduction of redundant efforts and the effective use of audit resources.
6. Review and approve requests for any consulting services to be performed by the external auditors, and be advised of any other study undertaken at the request of management that is beyond the scope of the audit engagement letter.
7. Review with management and the external auditors the results of the annual audits and related comments in consultation with other committees as deemed appropriate, including any difficulties or disputes with management, any significant changes in the audit plans, the rationale behind adoptions and changes in accounting principles, and accounting estimates requiring significant judgments.
8. Provide a medium for the external auditors to discuss with the audit committee their judgments about the quality, not just the acceptability, of accounting principles and financial disclosure practices used or proposed to be adopted by the company.
9. Approve changes in the directors of the internal audit function.
10. Instruct the internal auditors that they are responsible to the board of directors through the committee.
11. Review with the internal auditors any changes in the scope of their plans.
12. Review with the internal auditors the results of their monitoring of compliance with the code of conduct.
Other:
1. Review and update the committee’s charter.
2. Review and approve significant conflicts of interest and related party transactions.
3. Conduct and authorize investigations into any matters within the committee’s scope of responsibilities. The committee will be empowered to retain independent counsel and other professionals to assist in conducting any investigation.
4. Oversee Compliance Department. (See Statement of Policy for Compliance Department).
V. Documentation of Meetings
Minutes of all meetings of the Audit & Compliance Review Committee will fully document topics of discussion. Such minutes are considered official only when they bear the signature of the chairman of the Committee. Due to the nature of such meetings, minutes of Audit & Compliance Review Committee meetings are retained by the Corporate Secretary. These minutes are available upon request to external auditors, regulatory agencies and any outside member of the Board of Directors. All records, reports or such documents created by this Committee are confidential. The minutes of the Audit & Compliance Review Committee will be reviewed with the Board of Directors.
