ALLEGHENY BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2017 FINANCIAL RESULTS
Allegheny Bancshares, Inc., the parent company of Pendleton Community Bank, is pleased to announce first quarter 2017 net income of $744,000 or $0.88 per share. This compares with first quarter 2016 income of $747,000 or $0.87 per share. Return on Average Assets (ROAA) for the quarter was 1.08% and the Return on Average Equity (ROAE) was 8.50%. This compares to a ROAA of 1.12% and ROAE of 8.51% for the same period of 2016.
The slight decrease in income for the first quarter in 2017 compared to first quarter 2016 was primarily due to an increase in salaries and occupancy expenses resulting from opening a new branch office in downtown Harrisonburg, Virginia. In addition, we saw an increase in non-interest income, which partially offset the additional branch expenses.
Assets increased by 6.68% from March 31, 2016 to March 31, 2017 and, at the end of the quarter, totaled $288,661,000 and Shareholders' Equity at the end of the quarter totaled $35,878,000.
W.A. (Bill) Loving, President and CEO, indicated he was pleased with the first quarter's performance. According to Loving, "We have been encouraged by the growth of the bank in the first quarter of 2017. Between cost controls and strong organic growth, we are ahead of budget in terms of net income, total assets, and positioned well for the remainder of 2017. The expansion last year in the Harrisonburg market has given us more opportunities for loans as well as deposit growth. We are happy to be more deeply invested into this community. This new office adds to our existing footprint and growth opportunities the growing economy offers. The recent increase in interest rates has had a more pronounced impact on the short end of the yield curve; and, as a result, could put pressure on our interest margin. However, we feel that we have structured our balance sheet to prepare for the anticipated changes in interest rates. Given where we are today with low unemployment, increased credit quality, and strength in deposit growth, we are optimistic that these positive trends will continue through 2017; 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.