Investor Relations

ALLEGHENY BANCSHARES, INC. TO ACQUIRE MOUNT HOPE BANKSHARES, INC. AND ITS WHOLLY-OWNED SUBSIDIARY, BANK OF MOUNT HOPE

FRANKLIN, WV AND MOUNT HOPE, WV


Allegheny Bancshares, Inc. ("Allegheny") and Mount Hope Bankshares, Inc. ("Mount Hope") announced the signing of a definitive merger agreement between Allegheny and Mount Hope.


Pursuant to the terms of the merger agreement, Allegheny will acquire all of the outstanding shares of common stock of Mount Hope in exchange for cash in the amount of $58.00 per share. Total merger consideration received by Mount Hope shareholders is subject to an adjustment if Mount Hope's adjusted shareholders' equity as of the effective date of the merger is less than the target mutually determined by the parties. The aggregate consideration in the transaction is approximately $21.775 million.


The transaction has been unanimously approved by each company's board of directors and is expected to close in 2019, pending regulatory approvals and the approval of Mount Hope's shareholders. Following consummation of the merger, Mount Hope's wholly-owned subsidiary Bank of Mount Hope, Inc. will be consolidated with Allegheny's bank subsidiary, Pendleton Community Bank, Inc.


Allegheny's President and Chief Executive Officer, William A. Loving, Jr., said "We are excited with the opportunity to join our company with The Bank of Mount Hope whose culture and strong performance will only further strengthen our company, expand our footprint and provide more banking options for customers of Pendleton Community Bank and Bank of Mount Hope. Banking is a people business….a business of relationships. We look forward to working with Mount Hope's management and staff to build upon the relationships we have individually created; and, collectively, building into the communities we serve. We look forward to welcoming Mount Hope's customers as we work toward a seamless transition."


Mount Hope's President and Chief Executive officer, Ben M. Susman, said "This merger will provide resources to allow for continued growth in the marketplace. It is a win-win for our shareholders and our customers. This merger will provide our customers with enhanced banking products and services while maintaining a community banking option. We were impressed with the leadership and vision of Pendleton. This transaction will be good for Raleigh and Fayette Counties."


Mount Hope was advised by the investment banking firm of ProBank Austin and the law firm Bowles Rice LLP. Allegheny was advised by the investment banking firm of Vining Sparks Community Bank Advisory Group and was represented by the law firm Jackson Kelly PLLC.


About Allegheny

Allegheny is a $320 million bank holding company headquartered in Franklin, West Virginia. Pendleton Community Bank, Inc., an independent community bank since 1925, currently has four full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, and two financial centers and mortgage division in the Virginia community of Harrisonburg. In addition, the Bank has a loan production office in Wardensville, West Virginia.


About Mount Hope

Mount Hope, a bank holding company headquartered in Mount Hope, West Virginia, reported approximately $124 million in assets as of March 31, 2019, and operates three community banking offices in Mount Hope, Beckley and Oak Hill, West Virginia, through its subsidiary, Bank of Mount Hope, Inc.


Contacts

With respect to Allegheny:

William A. Loving, Jr., President & CEO

Telephone: (304) 358-2311

Email: bloving@yourbank.com


With respect to Mount Hope:

Ben M. Susman, President & CEO

Telephone: (304) 877-5551

Email: bsusman@mthopebank.com


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 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.

ALLEGHENY BANCSHARES, INC. ANNOUNCES 2018 EARNINGS

Allegheny Bancshares, Inc. (Allegheny), the parent company of Pendleton Community Bank, is pleased to announce its results of operations for the 4th quarter and year ending December 31, 2018.

Allegheny's net income for 2018 was $3,825,122 or $4.54 per share. This represents a 15.35% increase in net income from 2017's level of $3,316,038. It also represents a 16.41% increase in earnings per share from 2017's earnings per share of $3.90.

Net interest income grew $556,744 (4.77%) from $11,667,753 in 2017 to $12,224,497 in 2018. While assets grew by $18.7 million (6.46%) in 2018, loans increased by $15.8 million (6.91%) which provided 2018's growth in net interest income. Deposit balances increased by 7.23% during the year which funded 2018's loan growth. Assets, at year end, totaled $307,530,105 and total loans were $244,039,376. Total loan loss provision for 2018 was $370,000 compared to $450,000 in 2017; 4th quarter provision totaled $145,000 in 2018 as compared to $90,000 in fourth quarter 2017.

Allegheny's key financial performance indicators continued to be strong and compare favorably with state, national, and local peer group data. Allegheny produced a return on average assets (ROAA) of 1.27% and a return on average equity (ROAE) of 10.10% compared to 2017's results of 1.16% and 9.05% respectively.

W.A. (Bill) Loving, President and CEO, indicated he was pleased with 2018's performance. According to Loving, "We are excited to report that our 2018 earnings represent another record year of profitability for Allegheny Bancshares, Inc. 2018's net income and record performance was attributable to the balanced organic growth in our loan portfolio and core deposits, strategic balance sheet management, continued focus on our net interest margin, and a reduction in the tax burden resulting from the recent change in the tax law. In addition, continued focus on asset quality allowed for a reduction in our provision for loan loss

Our team consistently produces results that are well above our averages, while maintaining a strong community focus. I am confident that this dedication, along with the maturing of the strategic investments we have made in physical locations and technology will continue to propel us forward and set the stage for continued strong performance we accomplished in 2018."

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 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 financial centers in the Virginia community of Harrisonburg. In addition, the Bank has 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, Virginia.

2018 PCB Annual Report