ALLEGHENY BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2018
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce first quarter 2018 net income of $939,000 or $1.12 per share. This compares with first quarter 2017 income of $744,000 or $0.88 per share. Return on Average Assets (ROAA) for the quarter was 1.31% and the Return on Average Equity (ROAE) was 10.33%. This compares to a ROAA of 1.08% and ROAE of 8.50% for the same period of 2017.
The increase in income for the first quarter in 2018 compared to first quarter 2017 was attributed to many factors including a 7.3% ($204,000) increase in our net interest income, 58.3% ($105,000) decrease in provision for loan loss, and a reduction in income tax expense resulting from the lower corporate tax rate. These positive trends to our first quarter numbers were partially offset by higher salary and benefit costs and other expense increases.
Assets increased by 2.4% from March 31, 2017 to March 31, 2018 and, at the end of the quarter, totaled $295,557,000 and Shareholders' Equity at the end of the quarter totaled $36,842,000.
W.A. (Bill) Loving, President and CEO, indicated he was pleased with the first quarter's performance. According to Loving, "2018 is starting off well for the bank. Rising rates, improvement in the economy, and increasing loan demand has provided the needed catalyst for our improved bank performance. Couple that with the reduction in corporate income tax rates and stable net interest margin, and we are seeing profits increase at substantial levels. We are coming into 2018 with a strong balance sheet and strategically positioned for the potential of a continued rising interest rate environment. Given where we are today with low unemployment, increased credit quality, and continued strength in deposit growth, we are optimistic that these positive trends will continue through 2018; the result being another successful year for our customers, our team members, communities, as well as 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.
Pendleton Community Bank, an independent community bank since 1925, currently has six full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, and two offices 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 Harrisonburg, VA.