Investor Relations

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